Walmart Revives Layaway for Holiday Shopping

With the holiday season rapidly approaching, Walmart and most major retail stores are bringing back layaway for holiday shopping. They hope the layaway plan will help alleviate some of the financial pressure many families are facing during these tough times. At the same time, the layaway option will be good for business.

The layaway plan was a sales tactic common in most department stores during the last century. Simply said, layaway customers put aside store purchases, make payments on them and then take them home.

Another program for holiday shopping in the 1900's was the "Christmas Club." Disciplined patrons could save for Christmas all year in a special account at the bank.

When the use of credit cards became the way to shop, layaway and "Christmas Clubs" were fazed out.

However in today's bad economy, if retail stores want to have a successful holiday season they must help customers afford the cost of Christmas.

All over the country, customers are living paycheck to paycheck, saddled with credit card debt, and worried about their jobs, if they are fortunate enough to have one. Layaway does offer an option for holiday shopping, but it isn't free.

Walmart's layaway plan is limited to just toys and electronics. The pay-as-you-go program starts October 17 and runs through December 16 ^th. The item must cost at least $15 and the total minimum order must be at least $50. You must put down at least 10% of the order when you put the items on layaway.

You do not get charged interest, but you are charged a one-time $5 service charge. You will be charged $10 if your order is not picked up by December 16 ^th. If you cancel your order, there is a cancellation fee.

You can make your payments at any Walmart cash register. There will be no layaway orders processed or picked up on Black Friday, the day after Thanksgiving.

People maxed out on their credit cards are being denied more credit. Most people (57%), trying to get by, are now using cash or debit cards. Layaway offers another shopping option.

Layaway won't help your credit score, but it won't hurt you either. You can schedule your own payment dates. If an item goes on sale, the store will make adjustments. Whatever the costs, layaway is cheaper than extending credit card payments.

If the economy doesn't change soon, most stores will probably add more items to layaway and extend the program year round. Laway is one way for stores to stay in business, create more jobs, and help the economy.

Some other stores besides Walmart offering layaway this holiday season are: KMart, Burlington Coat Factory, Marshalls, Toys R' Us, TJ Maxx, Sears, and Hallmark

For more information see…

http://news.consumerreports.org/electronics/2011/09/walmart-holiday-shopping-the-return-of-laya ...

Sources:

http://online.wsj.com/article/SB100014240531111904103404576558711677530694.html

http://news.cosumerreports.org/electronics/2011/09walmart-holiday-shopping-the-return-of-laya ...