Wal-Mart Layaway

[mcheiss]

I guess most of you have already heard that Wal-Mart will no longer offer layaway to its customers. An announcement today said the program was just too expensive to continue in a time when customers are gearing themselves to other options such as online shopping, gift cards and no-cost credit alternatives. The company is now working to offer customers new payment options. Already, they offer zero interest offers for six months to a year for Wal-Mart cardholders. Customers can still place items on layaway until November 19th but must pick them up by December 8th. You guys think this is smart, considering that Target and K-Mart are still offering layaway.

[tim2462]

It doesn't really matter what k-mart is doing...they are almost extinct anyway.

To my knowledge, Target does not and has never offered lay-a-way.

[masons_dad1]

^

That's correct about Target never having layaway, which now leaves K-Mart and Big Lots with layaway. Big Lots is really moving up into the discount store leader title. Wal-Mart doing away with layaways is just another step by Wal-Mart moving away from founder Sam Walton's vision. Mr. Sam's Wal-Mart was about putting the customer first and many customers, including myself, use layaway, especially for Christmas buying. Does it profit Wal-Mart to offer layaway? No, and a resounding YES. I spend a lot more on layaways than I would normally spend otherwise and a great many customers probably feel the same way. Having gift cards and store credit cards is great, but I would just as easily use Target's credit card than Wal-Mart's.

Now if we could just get a Target and a Big Lots up here in Benton County, years from now I could tell stories to my grandchildren of how I used to shop at Wal-Mart long ago before they were born. The first question out of the mouths would be, "grandfather, what's a Wal-Mart?"

[mcheiss]

It doesn't really matter what k-mart is doing...they are almost extinct anyway.

To my knowledge, Target does not and has never offered lay-a-way.

I still say there's going to be a lot of pissed off people at Wal-Mart, who could take their business elsewhere.

[StevenRocks]

I still say there's going to be a lot of pissed off people at Wal-Mart, who could take their business elsewhere.

And they will. Wal-Mart has been successful with lower-income customers in part because they offered people the layaway option.

[mcheiss]

A lot of people depend on layaway for their Christmas shopping.

[masons_dad1]

I wonder how many Wal-Mart shoppers have good enough credit to get a Wal-Mart credit card when layaway was the best or only option for most of them, including myself. Many of those customers may have no choice but to take their business somewhere else. This is a big mistake by Wal-Mart, especially if Target is going to start offering layaways. What is Lee Scott thinking?

[Lady Celeste]

This may sound stupid but what's Layaway? Is that like a store within a store?

[masons_dad1]

This may sound stupid but what's Layaway? Is that like a store within a store?

Layaway is a service offered by many discount stores in which the store will hold any number of items for a customer for, usually, 90 days and the customer can make monthly payments or else just pay for it all when they pick up their "layaway." Some stores will hold layaways for longer than 90 days. Some stores, like K-Mart, charge a small fee to put items on layaway so if a customer decides to cancel the layaway the store makes a little money to return the items to the sales floor. One of the advantages of layaway is that if you find something that you know will either sell out, discontinue or whatever, but you don't have the money for it you can put it on layaway and pick it up when you have the money. Most stores won't allow sale items or "clearance" items to be put on layaway, BUT any items you have on layaway that are on sale or have a price reduction when you pick up your layaway will have the lower price. Also, any items you have on layaway that go up in price will stay at thr price it was when you put it on layaway. I could go on and on, but I've already went overboard again it seems.

Hope that helps a little.

[Lady Celeste]

Interesting. So it's like having an American Express card...you just have to wait before you can get the items. I honestly had never heard of it before so thank you Mason's Dad for kindly explaining it to me. I would think that Layaway would be helpful for some people. Personally that would drive me crazy...I could hardly contain myself trying to wait. Then again, for people who buy tons of holiday items, I would think that it's a way to lessen the financial sting of the holiday season.

[masons_dad1]

Interesting. So it's like having an American Express card...you just have to wait before you can get the items. I honestly had never heard of it before so thank you Mason's Dad for kindly explaining it to me. I would think that Layaway would be helpful for some people. Personally that would drive me crazy...I could hardly contain myself trying to wait. Then again, for people who buy tons of holiday items, I would think that it's a way to lessen the financial sting of the holiday season.

Layaway works well for me since I get paid bi-weekly and hate not having the money for something then go back to buy it when I get paid and it's sold out. I detest using credit cards and am a proud supporter of the Anti Credit Card Movement. I am down to just 1 credit card that I don't even carry with me and only use to prove I'm a human fit to exist in modern society.

[Aporkalypse]

Interesting. So it's like having an American Express card...you just have to wait before you can get the items. I honestly had never heard of it before so thank you Mason's Dad for kindly explaining it to me. I would think that Layaway would be helpful for some people. Personally that would drive me crazy...I could hardly contain myself trying to wait. Then again, for people who buy tons of holiday items, I would think that it's a way to lessen the financial sting of the holiday season.

Well, without the absurd interest and the credit application.

It's a good way for people with no credit to purchase something they can't quite afford via installments. I do think it's probably been waning in popularity for 30 years.

[masons_dad1]

I do think it's probably been waning in popularity for 30 years.

I blame that on credit card ("scam card") companies. Today, it's much easier for people, no matter how bad their credit score is, to get these cheap little pieces of plastic that let them get a bunch of stuff only to live miserably trying to pay down their balance. It's a sick world when a flimsy piece of plastic allows people to pretend they're wealthier than they really are and I'm so glad I and my family are well prepared for the day that "The Great Credit Card Hoax" will be abolished. Not many will be able to adapt to reality, but that's the price to pay for greed.

[Aporkalypse]

I blame that on credit card ("scam card") companies. Today, it's much easier for people, no matter how bad their credit score is, to get these cheap little pieces of plastic that let them get a bunch of stuff only to live miserably trying to pay down their balance. It's a sick world when a flimsy piece of plastic allows people to pretend they're wealthier than they really are and I'm so glad I and my family are well prepared for the day that "The Great Credit Card Hoax" will be abolished. Not many will be able to adapt to reality, but that's the price to pay for greed.

I agree, though something is to be said about the customers. It's a lot easier to walk out of the store with what you want and pay high interest rates than it is to put it on layaway and wait to bring it home. Credit card companies really exploit customers but customers are all too willing to be exploited.

[masons_dad1]

I agree, though something is to be said about the customers. It's a lot easier to walk out of the store with what you want and pay high interest rates than it is to put it on layaway and wait to bring it home. Credit card companies really exploit customers but customers are all too willing to be exploited.

How many people would turn down the opportunity to buy anything they want right now whether they can afford it or not? Credit cards are a retailers best way to make a bigger profit off the customer. Of course the customer may end up in financial ruin and the retailer would have to find another victim. I regard credit cards the same as cigarettes. The more the customer smokes/charges the more long-term damage they suffer and the retailer/tobacco company loses a customer.

That's why I support a more socialist society by banning credit cards. Retailers would profit more if they would come up with a payment system that allows the customer to buy more than they can afford without the long-term damage that credit cards can cause... oh I forgot, that's called "layaway!"

[Lady Celeste]

Since banks started issuing "debit" cards, there is hardly any occasion that I use a credit card. I prefer my bank issued card though because I don't have to carry around cash or checks...which are a pain in this fast paced society. I can have the freedom of a credit card...no worries about losing cash...without the interest rates. I must, however, keep an AMEX because there are some stores...i.e., Nieman Marcus...who do not accept bank cards. My interest rate on that card is zero because you just simply pay the balance before the bill is even sent to you.

My philosophy is that if you don't have it in the bank then you don't need it. I definitely DON'T do specialty cards. Anyway, if I could just get my eldest daughter to realize that money does not grow on trees and that a brand new car at 16 is not standard for most children then I will be okay...until my youngest daugher becomes a teenager. If it's one lesson I want my children to learn is to not depend on credit cards to live.

[Aporkalypse]

Since banks started issuing "debit" cards, there is hardly any occasion that I use a credit card. I prefer my bank issued card though because I don't have to carry around cash or checks...which are a pain in this fast paced society. I can have the freedom of a credit card...no worries about losing cash...without the interest rates. I must, however, keep an AMEX because there are some stores...i.e., Nieman Marcus...who do not accept bank cards. My interest rate on that card is zero because you just simply pay the balance before the bill is even sent to you.

My philosophy is that if you don't have it in the bank then you don't need it. I definitely DON'T do specialty cards. Anyway, if I could just get my eldest daughter to realize that money does not grow on trees and that a brand new car at 16 is not standard for most children then I will be okay...until my youngest daugher becomes a teenager. If it's one lesson I want my children to learn is to not depend on credit cards to live.

Same here. Debit cards made my life much easier for the several years.

Credit cards have a role. If you make a lot of purchases and have no need for "credit" per se "Cash back" or "Rewards" cards including those that give you frequent flier miles actually benefit you. This is only true, of course, if you pay off your cards fully each month. I make a few hundred dollars a year off of my credit cards, instead of the inverse.

[masons_dad1]

It's just too bad credit cards aren't 90 day interest free... like layaway. Like I said, layaway isn't really set up for "I want it now" shoppers, but more for people who just want to knock out all their gift shopping and not bring it home until they're ready to give gifts, like at Christmas. It's also helpful when you're not sure you want something you can just put it on layaway so it won't get sold out and then you have 90 days to decide if you really want it. My credit card is just to book hotel or flight reservations. I only pay with my credit card what I can pay on it within 30 days... if that made sense.

[mcheiss]

I have to say these interest rateAPR's are getting insane. I think I got one in the mail from Target or something and the APR after one penalty was near 30%. I have a capitol one and it's near 10%.

[Aporkalypse]

I have to say these interest rateAPR's are getting insane. I think I got one in the mail from Target or something and the APR after one penalty was near 30%. I have a capitol one and it's near 10%.

Credit card interest rates are going up at pace with the rising federal prime rate.

Now, a little Arkansas trivia. Want to know which credit card consistently has the lowest interest rate (after initial conditional APRs for 6 mos expire)?

Pulaski Bank. You'll find it at the top of most credit card info sites.

[dimebag1980]

My parents always used lay-a-way for Christmas time, since they're very poor. I'm sure they still use it. But they've always used K-Mart's lay-a-way since there's a K-Mart real close to their house that's been there for probably 30+ years. Now they have a Wal-Mart not much farther down the road where they shop some, so they'll hate that Wal-Mart is doing away with the program.

I've never had to use lay-a-way (thank goodness) so I personally won't miss it... but I know a lot of people will. People like my parents have never had a credit card and couldn't get one today if they wanted it, so lay-a-way has been a Godsend for them.

[masons_dad1]

My parents always used lay-a-way for Christmas time, since they're very poor. I'm sure they still use it. But they've always used K-Mart's lay-a-way since there's a K-Mart real close to their house that's been there for probably 30+ years. Now they have a Wal-Mart not much farther down the road where they shop some, so they'll hate that Wal-Mart is doing away with the program.

I've never had to use lay-a-way (thank goodness) so I personally won't miss it... but I know a lot of people will. People like my parents have never had a credit card and couldn't get one today if they wanted it, so lay-a-way has been a Godsend for them.

K-Mart does charge a small layaway fee... $5 or $6 whereas Wal-Mart never charged a fee, unless you didn't pick up your layaway then they charged a restock fee. I get paid bi-weekly and as anyone would know living paycheck to paycheck is much harder when budgeting for two weeks at a time instead of just one. I will probably start using my credit card to help between paychecks as it would also help repair my credit rating by actually using it and just paying it off every month.

I expect that a year after Wal-Mart ends their layaway service bankruptcies in the US will quadruple... that is six months after people subject themselves to those credit counseling scams.

[Breezy]

I wonder how many Wal-Mart shoppers have good enough credit to get a Wal-Mart credit card when layaway was the best or only option for most of them, including myself. Many of those customers may have no choice but to take their business somewhere else. This is a big mistake by Wal-Mart, especially if Target is going to start offering layaways. What is Lee Scott thinking?