Layaway Plans Begin to Reemerge as Credit Crisis Tightens Grip.

Hello there! If you are new here, you might want to subscribe to the RSS feed for updates on this topic.

It would appear that an old custom which predated the days of quick and easy credit has began a revival of sorts. Albeit a small one.

Kmart has officially reinstated their layaway plan specifically for the Christmas Holiday Season.

If you’re too young to remember, a layaway plan is essentially a delayed method of payment where the customer makes a small payment on an item, the store removes it from the sales floor, and the customer takes possession of the item only after the cost has been paid in full.

As someone who is slightly older than the average blogger, I can remember my parents using a layaway plan for my Christmas gifts. Not because we were financially strapped, but largely because I was a mischievous little hellion who could track down hidden gifts like a bloodhound.

Out with the new, in with the old

Since getting a credit card has been so easy in the last 15 to 20 years, layaway plans are largely considered a relic of an older economy. Primarily because layaway plans do not feed our instant gratification based mentality.

Retailers have long understood our Veruca Salt, “I Don’t Care How, I Want It Now” philosophy (think Willy Wonka & The Chocolate Factory) is immensely important to their bottom line, and of course, want to help us buy at all costs.

However, I’m anticipating that as customers see their credit card limits shrink and their budgets tighten, retailers will begin dipping back into old pre-credit card era sales tactics to aid their struggling sales numbers.

In my opinion, Kmart is just the first of many that will bring their layaway programs back from the dead.

…

SUBSCRIBE: If you enjoyed this article, please sign up for new article alerts by RSS feed or Email.

…

Got a comment?