Layaway making a comeback with shoppers
Photo
Melinda Warner stacks toys that she and her husband David picked out at K-Mart on the stores layaway counter as K-Mart employee Suzie Burkheimer looks on at the Janesville K-Mart store.
JANESVILLE — Years ago, Melinda Warner put items on layaway all the time.
So when she saw commercials advertising Kmart’s layaway program this year, she thought it was a good idea.
The Darien woman shops at Kmart, 2233 Humes Road, Janesville, specifically because it has layaway, she said.
“You can pay on it every week,” she said Thursday as she loaded a cart full of toys for her son and grandsons onto the layaway counter. “Storage is nice; you don’t have to hide everything.”
Layaway, which allows customers to set purchases aside until they are paid in full, became popular during the Great Depression but waned in recent decades as credit card use increased, according to an October Wall Street Journal article. Wal-Mart phased out layaway in 2006, citing declining use and increasing costs.
But as the economy shrinks and credit tightens, layaway appears to be gaining in popularity in stores that still offer it.
The local Kmart store has seen its layaway orders double so far this holiday shopping season over last year, said Jerry St. Marie, store manager. He’s seen lines stretching down the aisle at times for people waiting to put things on layaway, especially on weekends, he said.
The chain has emphasized its layaway program in its holiday advertising campaign. Sears, whose parent company also owns Kmart, is offering layaway this holiday season for the first time in years, St. Marie said.
Other chains offering layaway include TJ Maxx, Marshalls and Burlington Coat Factory, according to The Wall Street Journal.
Companies’ layaway policies vary. Kmart requires customers to pay a $5 layaway fee and put down 10 percent of the total cost or $10, whichever is greater. Customers pay 25 percent of the balance every two weeks for eight weeks.
Cheryl Collins, Beloit, thinks the fee is worth it. She has put clothes and gifts for her grandchildren on layaway at Kmart this year, she said.
“Sometimes you just don’t always have the money to pay for something outright,” she said.
Several independent Janesville stores never stopped offering layaway. It is especially popular for big-ticket items such as furniture, bicycles and jewelry.
A small percentage of customers use layaway at Bay Design Custom Jewelers, 1727 Newport Ave., Janesville, co-owner Alician Pearce said. But she has noticed that number increase in recent months, she said.
“We have seen more layaways, just because, like everything else, everything’s going up in price,” she said.
But Donna Acheson, manager of Dubes Jewelry, 21 W. Milwaukee St., Janesville, hasn’t noticed an increase in layaways because the program always has been popular there, she said. Layaway helps customers budget and keeps gifts out of the house, she said.
“The guys who shop in August for Christmas, they don’t want it laying around the house for somebody to find,” she said.
Nov 24, 2008 at 9:11 p.m.
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lilbobby, if who you are on the inside would show on the outside, nobody would want to look at you. I'm sure the lady in the picture is very nice and caring and it's unfortunate that there are people like you in this world.
Nov 24, 2008 at 3:32 p.m.
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lilbobby, you really are a piece of work. Really. I am impressed. Bet you're mother is proud.
Nov 23, 2008 at 3:19 p.m.
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I would encourage the Gazette to rethink their policy on allowing comments on stories such as these. It is unfortunate that some people have to stoop to rude and degrading comments in order to make themselves feel better. How sad for them.
Nov 23, 2008 at 3:12 p.m.
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Yes bobby, because you are probably in perfect health. Honestly, you are very immature to be blaming people's financial troubles on their body size. grow up.
Nov 23, 2008 at 1:24 p.m.
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I just think if people didn't put so much in their mouths they wouldn't have so many financial problems, not to mention health problems that WE all end up paying for because they don't have health ins.
Nov 23, 2008 at 10:26 a.m.
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I would just like to say "Thank You" to the Janesville Gazette Staff and to bbwil for helping to remove the rude and offensive comments made on this forum. I'm a friend of the Warner family and was very dissappointed and appalled when I seen the comments posted about them on this site. This story is about the process of Layaway and the economy. NOT about someone's looks. It takes a small, small person to take a story about families and Christmas happiness and use it against someone because of their looks. What this story doesn't say is that the only reason they were buying so many toys and using layaway was because they were buying Christmas present for ALL their grandchildren because those children's parents cant afford presents for their own kids. Melinda and Dave try so hard and give their extended family just as much love as their own children. So the next time you decide to be rude, Think Twice, because what you say can hurt. Thats all, and again thank you.
Nov 23, 2008 at 10:17 a.m.
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i did not know that kmart had layaway. i have not shopped at a kmart store in close to 10 years or so. but knowing this i may use it this holiday season just for the storage. my daughter has discovered my previous hiding place and with a small house i dont have many options. i feel $5 is a good months storage fee.
Nov 23, 2008 at 8:31 a.m.
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I loved layaway. It was always a great way to buy sale items when I didn't have the money that day. Of course, layaway was free back then, and I didn't have money in my teen years. I would never pay for layway. I just put it on credit, and pay my credit card off in full every month! That's the key.
Nov 23, 2008 at 8:03 a.m.
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Wow people complain about the strangest things. If the business wants to offer layaway then that's their decision. Credit has gotten a lot of people into trouble and isn't for everyone.
Nov 23, 2008 at 7:12 a.m.
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What a strange, personal message to place on a public discussion thread, Janesvillean. Best to keep such passive-aggressive comments to yourself.
Nov 22, 2008 at 9:58 p.m.
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Doc and lilbobby, you shoudl be ashamed of yourselves. How old are you anyway? Who do you think you are to come in here and judge that woman on her appearance? Why is that even in issue?
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Grow up.
Nov 22, 2008 at 8:27 p.m.
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Leave it to Janesvillians to bark at eachother on a layaway artical... Thank god we are YOUR future and not the other way around, no wonder everything is so messed up today. haha
Nov 22, 2008 at 7:10 p.m.
Nov 22, 2008 at 5:56 p.m.
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Also I get paid monthly, so splitting a payment on only 2 paychecks wouldn't really make any difference to me.
Nov 22, 2008 at 5:54 p.m.
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Yes, I agree layaway is much better than credit. I learned the hard way the pitfalls of credit and no longer have any (and am much better off for it). I was just surprised to learn what layaway actually was. I used to think it was the equivalent of a store credit account, or lease or something. If layaway works for people I have no problem with it. I'll just save the $5 fee myself.
Nov 22, 2008 at 3:57 p.m.
Nov 22, 2008 at 3:39 p.m.
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ktaustin, this IS a form of budgeting, and it is much less expensive in the long run than credit -- which most people use without thinking about it. I have no reason to criticize someone for using layaway, and many money-management books and gurus recommend it for people trying to wean themselves from the credit habit. Layaway can also have the advantage of locking in a sale price or a unique item, which is why it is more commonly found in appliance and furniture stores (or used to be, anyway).
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But you are right that if someone is a disciplined saver, they can save themselves a layaway fee and just pay cash.
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Kilgor720, here is Sears Layaway right on their website:
http://www.sears.com/shc/s/dap_10153_126...
Nov 22, 2008 at 10:58 a.m.
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Thanks for the info, Twerp13.
Nov 22, 2008 at 10:40 a.m.
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I hope the kids don't read the paper, they will already know what they are getting for Christmas!
Nov 21, 2008 at 11:45 p.m.
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thekid- LOL!!
Nov 21, 2008 at 6:57 p.m.
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Gee, I called Sears just yesterday, and was told that they didn't have a layaway program. Hmmmm?
Nov 21, 2008 at 4:44 p.m.
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Oh there is a Santa Happy early X Mas.
Nov 21, 2008 at 4:18 p.m.
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Hey, Ktaustin...maybe some of us have kids who still believe in Santa and we want them to have that 'surprise' on Christmas morning.
It's not that people necessarily can't "budget". Maybe people YOU know have that problem, but the people I know that use layaway, that's not the case.
Nov 21, 2008 at 2:46 p.m.
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It may be for those of us who can't "budget" but at least we're not running up credit card debt.
Nov 21, 2008 at 2:14 p.m.
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You are making me smile again today thekid LOL
Nov 21, 2008 at 12:03 p.m.
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So with layaway, you make the installment payments and don't get the item until it's paid in full? So basicaly this is for someone who can't bother to budget a savings on their own? From how its described I don't see why you wouldn't just "pay" the installment payments to yourself, and save the $5 fee. I guess I understand if you want to lockin a sale price, or if you see something that you don't think will be around in 2 months.
Nov 21, 2008 at 11:50 a.m.
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if this layaway thing works maybe at some point they can come up with a system where we get the product and THEN pay for it. maybe swipe a little card or somethin...i dont know. we could let people get these 'cards' based on a promise to pay back cuz im sure we're smart enough as a society not to spend more than we can afford/make and everything will be wonderful...
Nov 21, 2008 at 11:06 a.m.
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I know, I was disappointed with WalMart, too. But I figured that if they didn't want the layaway business, K-mart would be more than happy with it.
Nov 21, 2008 at 8:57 a.m.
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biggirl, usually you lose the $5.00 fee and the rest is refunded to you. Some stores will charge a small restock fee, but I don't know exactly how much.
Nov 21, 2008 at 8:52 a.m.
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I used to use Walmart's layaway all of the time, especialy at back to school & Christmas time.I was upset when the eliminiated it.
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I wish they could bring it back. It was a real help to be able to get the best sales price and then be able to pay on time for it later, without the high credit card fees. I am glad that Kmart still offers it, and I know there will be a few items going on it the day after thanksgiving.
Nov 21, 2008 at 8:44 a.m.
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Please add to the report -- or put it in the comments -- the answer to this question: What happens if the person fails to pay the last installment of the layaway plan? Does the person lose the item? As written, it seems like such a convenient good idea.
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