Consumers planning for holiday layaways as retailers gear up
The option to put items on layaway may have faded over the past few years. However, the purchasing method is not dead, as many retailers have announced they are planning on offering the service for customers this holiday shopping season. It seems as though shoppers are open to the idea, as recent research has revealed that a significant amount of American consumers are planning on taking advantage of layaway when buying gifts this year.
Consumers list many advantages for layaway
Perhaps its because of recent economic conditions, or maybe shoppers just want to keep a closer eye on their finances. Whatever the reason, some consumers will be using layaway options during the 2012 holiday season. A recent survey by CouponCabin found that 34 percent of American adults are somewhat likely to put items on layaway in the coming months. Nine percent of respondents stated they are more than likely going to use the options.
These customers see many benefits to putting items on layaway. More than half (54 percent) stated this option gives shoppers the chance to buy larger items that they are unable to pay for all at once. Maintaining a holiday shopping budget came in as the second best reason to use layaway, at 52 percent, and avoiding the use of credit cards garnered 46 percent of responses. Additionally, 43 percent said layaway options help people plan ahead for their holiday purchases, the study discovered.
"Layaway can be a smart option for holiday shoppers on a budget, as it forces shoppers to be disciplined about saving and reduces impulse purchases," said Jackie Warrick, president and chief savings officer at CouponCabin.com.
Layaway efforts increased among retailers
Perhaps in response to the significant demand and slow economic growth, many big-name retailers are bringing back their layaway options for shoppers this holiday season. According to The Street, Wal-Mart, Toys-R-Us, Kmart, Target and Sears are among the companies that are giving consumers the chance to use layaway. Many of these businesses discontinued their layaway methods over the past few years, but they have decided to offer them this year to bring in more cash-conscious customers.
To further accommodate consumers, some retailers, including T.J. Maxx, Best Buy and Wal-mart, are reducing the fees required for opening a layaway account. Other companies, such as Kmart, Sears and Toys-R-Us, are completely waiving their fees for customers, states the news source.
