Layaway shopping is the new black as Kmart joins revival
Filed under: Shopping
You may have seen their commercials. Kmart has been touting their new layaway plan as a great way to shop for Christmas gifts, except, of course, it's not a new plan. They've had it for years. But the concept of layaway--paying for something in installments before you make your purchase and thus not raking up any interest--that feels new to a lot of people. Including myself. I'm in my late 30s, and I can't think of any time when I've ever bought anything on layaway.
But you look through old newspaper ads, and you can see how it once not just a concept but a way of life, just as credit cards are today. Everyone bought everything on layaway -- furniture, jewelry, suits. In an April 25, 1947 copy of the St. Petersburg Times, for instance, there's an ad touting a layaway program for a graduation gift for a high school senior: a $15 pen with a gold-plated cap. Boy, times have changed.
But layaway may be coming back, thanks, of course, to the swing in the economy in the last few weeks, and so I thought I'd compile a list of some of the places you can find layaway programs:
Toys R Us Trends 2008
Toys R Us has identified five trends for hot holiday toys, and several toys for each category. Among them are the trend $avvy Savers and the Zillions Laser Beam Safe from Summit Toys.
Toys R Us
Trend: $avvy Savers Toy: Zillions Counting Money Jar from Summit Toys
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Trend: $avvy Savers Toy: Shop & Learn Walker from Fisher-Price
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Trend: Music My Way Toy: iPods of all varieties
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Trend: Music My Way Toy: Acoustic guitars from First Act Discovery
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Trend: Music My Way Toy: Nickelodeon's iCarly boom box
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Trend: Music My Way Toy: Activision/Blizzard's Guitar Hero: World Tour
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Trend: Earth-Friendly Fun Toy: Natural Wood Alphabet Block Wagon from Toys R Us
Toys R Us
Trend: Earth-Friendly Fun Toy: Green Toys' Cookware and Dining Set
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Trend: Earth-Friendly Fun Toy: Laura C Martin's Nature's Art Box
Toys R Us
Retail stores that have layaway programs: This isn't meant to be a full list. Marshalls, the aforementioned Kmart, Burlington Coat Factory, T.J. Maxx and KB Toys all have layaway plans.
One place you can't find it, at least not at the moment: Walmart. They got rid of their program in 2006. I have to wonder if the executives are kicking themselves now.
Of course, there is--you almost expect it--a website you can go to that will let you buy just about anything you want on layaway: Check out eLayaway.com. As it says on its web site, it "allows you to buy the products and services that you want by paying for them through manageable monthly payments that you set." They have a calculator that will let you figure out the purchase price over 3 to 13 monthly payments. Payments are automatically deducted from your bank account every month. The fee for the service is 1.9% for every $100 you spend. Once you've paid for your TV, shoes, your fishing reel -- you can buy about anything -- then it's delivered.
Take a vacation on layaway: Yep, you can pay for your vacation first, in layaway installments at Layaway-Travel.com.
Diapers? Yup. Believe it or not, there's even a layaway plan for cloth diapers at BabysAbode.com.
Reader Comments (Page 1 of 9)
10-21-2008 @ 8:52AM
Sheila said...
I have to laugh as I hear people say they have never purchased on layaway, it only disappeared two years ago! I am glad to see it making a comeback and think that for those of us who - OMG - don't have/use credit cards this is a blessing! I was very disappointed in Walmart when they did away with the layaway because it took away from my kids, nieces and nephews, friends all the kids in my life because I suddenly had no way to purchase what I wanted! Well I am a BIG fan of layaway and I say "Kudos" to the stores that offer it!
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10-21-2008 @ 8:36PM
Todd said...
So sad that people don't know how to save thier money. They have to expect the retailers to "hold" their merchandise and claim that the retail establishments that have done away of layaway have taken away from their family. You had the money to put down on the merchandise, go ahead and pay cash for it like you had done when you were buying it on layaway. It does not make sense to say that they have taken from your family.
10-21-2008 @ 8:54PM
Cat said...
IT does seem new! So you wait a little for your goods & don't pay more? Works for us, onlt regret is there is no K-Mart for 60 miles. THIS IS A GREAT BOON FOR BUSINESS ALIKE!
10-22-2008 @ 11:17AM
Sharon K. said...
I agree with you Sheila about layaway and I'm glad K-Mart is bringing back their lawaway! It's makes things easier for those of us who don't use credit cards, but find that putting the cash aside is tricky (something usually comes up where the cash is needed and you're unable to save for what you wanted). In this tight economy it's a great idea too. I hope Wal Mart gets smart and brings it back too. I prefer K-Mart to Wal Mart however.
10-22-2008 @ 1:15PM
L said...
Todd - there are only 3 differences with lay-a-way vs credit.
1. with lay-a-way, you can't take your purchases home immediately
2. with lay-a-way, you do not risk finance charges for not paying in full.
3. with lay-a-way, interest does not accumulate making that $200 purchase actually cost $350 by the time the balance is paid.
Lay-a-way is a much better way of keeping kids from snooping to see what you bought them too - the parcels aren't hidden in your house, they are tucked safely away at the local merchant.
10-22-2008 @ 2:36PM
sheretha said...
Its great to hear that the layway is back. I hope that one day really soon walmart will do the same. Maybe right before are on the day after turkey day sale. There is no Kmart in Houston and Target is not going to have a layway.
10-22-2008 @ 4:23PM
Skylar said...
Wal-mart was depending on people to apply for the credit cards they are offering, as they have 6-12 months to pay with no interest. Of course, if a persons credit wouldn't allow them the card, it wouldn't help at all.
10-22-2008 @ 6:53PM
dale said...
i love k-mart.....we have a walmart 3 miles away. But I will drive 15 miles to k-mart to avoid rude people.
10-21-2008 @ 3:50PM
Oz said...
Layaway is a huge pain from the retailer's perspective. Between the logistics of having to store and track all of those psuedo-purchases and how many times so-called customers change their mind and want their money back (which means you tied up inventory and wasted labor for nothing), layaway is a nightmare that should stay in the grave.
I don't get what's so hard about the idea of saving up for a big purchase?
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10-21-2008 @ 8:57PM
Cat said...
Ever hear of the fable "The King's clothes"? Bet he widhed he had lay-a-way!
10-22-2008 @ 6:18AM
LEE said...
It's not a question of NOT being able to save up for a purchase...rather that suddenly something you might have been saving for is now on sale--a lot-- and the costs for layways are far less than what you are saving. For example, a friend just purchased a 32" flatscreen tv they had been working towards. Because of the sale they were able to save $120 while the layaway charges only totaled $7.45. And in the past layway charges were very minimal like $1 per month. Frankly though, I think the retailers will be looking to layways to increase income like a $2-3 a month charge. Really smart retailers though, might just use it as an enticement to bring in shoppers.
10-22-2008 @ 10:21AM
Debie said...
The problem with saving the money first is that by the time you have enough, the merchandise can be gone. I loved lay-a-way. When you have several kids to buy for, you can get your shopping done all at once, have the store keep it hidden for you and pay for it a little at a time. I hate having to put all those purchases on my credit card to pay for after Christmas.
10-22-2008 @ 1:44PM
Edna said...
I will tell you what the deal is. There is only a certain amount of latest toys, wii or x- box games, and other electronics for children available. With the lay away plan you can make sure that you get it and that you will be able to pay for it without leaving a hole in your pcoket because it will be done in installments. I bet that all of you giving it the thumbs down will be using this program soon!
10-23-2008 @ 3:14AM
shelley said...
As a person that was in charge of a layaway program in store, 90% of the people that used the layaway program actually did follow through with their entire purchase. We did have a few people that would change their minds about some part of their purchase or the entire thing. However dealing with a voided layaway is really no different then someone purchasing the merchandise and then returning it but the condition of the merchandise from the layaway is in orginal condition can't always say that about regular purchases. I for one am very excited to see layaway making a comeback and will definately will be shopping at those stores that are offering it.
10-23-2008 @ 6:54PM
b. bloom said...
FOR ALL YOU THAT CAN'T UNDERSTAND WHY ONE CAN'T JUST SAVE UP FOR SOMETHING AND THEN BUY IT? THE ANSWER- LIFE ALWAYS FINDS A WAY TO INTERRUPT.USUALLY SOMETHING COMES UP, HOWEVER MINOR, AND THAT MONEY IS USED. IF ONE LAYS SOMETHING AWAY, ONE KNOWS THAT MONEY HAS TO BE PAID TO THE STORE ON A REGULAR BASIS OR THE MERCHANDISE IS PUT BACK ON THE SHELF.
10-23-2008 @ 5:53PM
gary said...
I've always considered lay away much better. It' s paying cash for something, just over time. Credit cards have demonstrated that people cannot be trusted to pay those off. Credit card debt has destroyed far too many families in our nation. I'd like to see them change CC's in some way. http://www.lowcostaffordableinsurance.com
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10-21-2008 @ 9:01PM
Cat said...
Credit cards are an absolute necessity of life. That is if you are too gullible & stupid to manage your money. We have one, in a safe deposit box on the far side of town.
10-21-2008 @ 8:07PM
Paula said...
Oz, I understand what you're saying from the retailers perspective but I think given the economy right now, it's needed. I was a single mom for a number of years and "saving" wasn't an option for me. Thank goodness for stores that had layaway....I was able to provide some kind of Christmas for my boys. At least you have to pay off the merchandise before you can get it....not so with credit cards.
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10-21-2008 @ 8:24PM
jerry said...
my wife is a empolyee of k-mart for 29 years,she works in layaway 90% in that dept.,that helps in our money coming in this rough times. please shop k-mart.
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10-21-2008 @ 9:07PM
cat said...
Lay-a-way whets the anticipation & appreciation of an item/items you want.
Praise be it plays havoc with credit cards & impulse buying!