Older shoppers remember layaway plans when they were regularly used by consumers. Then credit cards came into existence and stores and consumers both embraced them. A sale could be completed and the buyer able to walk out of the store with the merchandise in hand. Layaway opportunities became less available as credit card usage increased.
Now there seems to be a revival in layaway plans as consumers avoid accumulating debt. Some of the largest retailers, like Kmart, Sears, and Toys “R” Us, are bringing back layaway to attract scarce consumer dollars. The plans vary with some stores limiting what can be placed on layaway to big ticket items. This enables consumers to purchase the more expensive items that they would not be able to buy otherwise.
Credit cards are still by far the primary payment form, but it is expected that layaway will account for up to 11 percent of payment methods used by consumers. For
Recent Comments