2014 Brandcameo Product Placement Awards

retail watch

Walmart Brings Layaway Out of Layaway

Posted by Dale Buss on September 9, 2011 01:02 PM

If there's one thing that Wal-Mart has always been good at, it's gauging the zeitgeist of the American consumer. That's why it emphasized low prices and huge selection in the first place, why it tries to keep smutty DVDs out of its stores, why it finally saw the light and became a good environmental corporate citizen, and why it recently did an about-face on its merchandising-simplification strategy.

But you don't have to be the world's largest or most in-tune retailer to understand that American shoppers are hurting these days, especially the salt-of-the-earth clientele of Walmart.

Thus it is hardly surprising that, with the U.S. economy stagnating and consumer confidence fading like the summer, Walmart is bringing back the hoary practice of layaway, just in time for the Christmas season. Walmart stores will begin offering layaway again next month on toys or electronics for total purchase prices of $50 or more, a 10-percent down payment and a non-refundable $5 fee, and final payments due by December 16.

Wal-Mart had eliminated layaway five years ago except for jewelry purchases; among the reasons were the fact that layaway added to back-room clutter. But rivals including Sears and Toys "R" Us have resumed broader layaway programs in recent years and reported a subsequent boost in sales.

Besides, American consumers clearly seem desperate for more help, and fewer want to rely on credit cards. Fed chairman Ben Bernanke may be expressing puzzlement about why consumers are so dispirited, but the reasons are pretty clear. According to a new study by Boston Consulting Group, American women are feeling peak financial anxieties these days. Partly as a result, for the first time in three years, U.S. quick-serve restaurant operators have been growing more pessimistic about same-outlet sales instead of optimistic.

Bringing layaway plan back to Walmart shoppers won't reverse all this any more than a new federal stimulus would. But if it can help people make it through the holidays, Wal-Mart will have a winner.

Comments

Madeline Aldapa United States says:

Which was type of inspiring! Totally unforeseen. Now I'm sure what I am heading to do tomorrow Smile

September 11, 2011 07:48 PM #

Sam United States says:

I'm shocked at this statement that ends the article:
"...Bringing layaway plan back to Walmart shoppers won't reverse all this any more than a new federal stimulus would. But if it can help people make it through the holidays, Wal-Mart will have a winner..."

If a person cannot afford to pay 50 dollars in cash for a toy or electronic gadget - and no credit issuer is willing to front them 50 dollars of credit, why on earth does the author think it is a GODD idea for that person to be participating in the orgy of needless spending that "christmas"/"the holiday season" has become?

Said person needs to stay way away from such spending, as it serves no one but the billionaire owners of Wal-mart. This is just old fashioned loan sharking by Walmart, a company which by the way probably has many staff who would be in the target for this "service", as it doesnt pay living wages in many areas.

And it is sad that Brandchannel would say anything else but that. This is a classic example of commerce gone amok. Totally amok. Moral compass and common sense completely absent here.

September 12, 2011 02:54 AM #

Comments are closed

elsewhere on brandchannel

1 2 3 4 5 6 7 8 9
brandcameo2014 Product Placement Awards
Apple loses its crown to a new #1
Coca-ColaIt's the Journey That Matters:
Coca-Cola Opens Up With Story-Based Web Refresh
debateJoin the Debate
Is product placement a waste of money?
BPBP
Branding Comeback Challenges
Arthur Chinski and Joshua Mizrahi
Model Behavior? Brands Beware
U.S. Legal Changes Impact Use of Brand Ambassadors
Digital Watch: WahlAT&T
Rethinking Possible With Transmedia Storytelling
paperGlobal Competitive [Ad]vantage
The latest from GeoEdge
Sheryl Connelly
Sheryl Connelly

Meet Ford's Resident Futurist
MetaluxuryMeta-Luxury
Brands and the pursuit of excellence

Advertisements