Don't Call It a Comeback

"Put that on layaway, please." No, you didn't just overhear a conversation from 1983--layaway is actually back in retail action. The last time I encountered layaway, my mother was placing all four of my sisters' school clothes on layaway at J.C. Penney. And let me tell you, that was awhile ago.

But with the recent economic panic, retailers are pulling out all the stops--coupons galore, special promotions filled with a plethora of exclamation points and...er...layaway.

This is quite the stretch. And if we're going to bring layaway back, we might as well reintroduce leg warmers. In hot pink.

Sears and Kmart are leading the way in bringing this dinosaur of a retail program back. In fact, Sears hasn't had an active layaway program for more than 20 years. Until now.

For those too young to remember (or those of us suffering from poor memories), layaway allows consumers to pay a small fee along with a minimum payment to secure their purchase. They then have a specific period of time to pay off the item without accruing interest. At Kmart, customers have eight weeks to pay off the item of their choice without interest. Once the item is paid off, customers then receive their purchase.

According to recent reports, popular layaway items include consumer electronics, video game equipment--like the Wii, lawn mowers and other big ticket items. After giving it some thought, layaway just might be a better option than plopping purchases on credit cards, especially with exorbitant interest rates. I might be able to hop on this train after all.

But, not just yet. The most perplexing part of this shift is that statistically it's not supported. A recent survey by the National Retail Federation found that consumers plan on spending $832, on average, for holiday shopping, which is an increase of 1.9 percent from last year.

Looks like retailers and consumers alike may fair far better than anyone is currently imagining. In the meantime, I'm going to pick up a lawn mower, tires and a new wardrobe and put it all on layaway at Sears. How about you?

Do you remember layaway? What do you think about the comeback? Leave your thoughts here!

--Heather Strang

Comments

[Elise Michaels]

I love layaway! When the kids were younger, Mr. Michaels and I would go out one evening in October, pick out the kids' presents, and then pick them up on Christmas Eve. We didn't have to worry about hiding presents or even shopping when the stores were crazy busy. Once in a while, I'll see something I really want and wish they had layaway. It keeps me from using my cards plus if it turns out I don't want/need it, I can return it.

[RetailLisa]

Yes, I remember getting some school clothes on layaway. My mom paid it off within one or two paychecks... Except I think it's more 1968 than 1983.

I don't get it, why wouldn't someone want to wait a month or so, with no interest, rather than paying up to 20%. Is instant gratification that strong?

[DFDdesign]

I, too, remember layaway. I think that in the current economic state we are in, Layaway might just be the thing to keep some retailers alive. Like Hardliner, I won't be using layaway, but I'm sure that there are many families out there that it would make a difference to.

[hardliner]

Yes, I remember layaway and it's good to see it back. A personal touch from the store along with a chance to spread out the payments should be welcomed in this economy. I think the stores left the concept behind with the proliferation of store credit cards that let the stores make outrageous interest and fees. But with the credit crunch layaway makes more sense than ever. But... no, I won't be using it, I'm old enough and old-fashioned enough, that if I can't pay for it now, I won't buy it until I can pay for it. Keep those cards and letters coming folks, and even though it's not politically correct to say.... Merry Christmas to all.