Why is Layaway not offered anywhere anymore?

I wanted to make a rather large xmas purchase and found out that Walmart, Target, etc no longer offer Layaway ??? Anyone know why?

 

Not cost effective for them.

 

WalMart announced last year that they would no longer offer layaway. They want to offer their credit card to you instead and have you pay interest.

FYI-I did get a mailer last week that you could purchase jewelry on layaway at WalMart.

 

But having to bring large items home also makes it hard to 'hide' them ..till Christmas :roll:

 

Hmmm...

I wonder of that might not be a good business venture. Someone want something from Wal*Mart, but wants it on layaway. They come to the "Layaway Store", select the item and pay a 10% non-refundable fee. The store buys the item and stores it. The customer continues to pay for the item a little at a time until it is paid in full (plus that 10%, of course).

 

but once it's been on layway they can't sell it for full value. So that 10% prolly isn't squat and just doesn't cover the discount they have to REsell it for. :?

 

You may have something there, 'Santa's warehouse'.
Although you would have to have security or something cause if people knew about it, they probably try to rob the place!

 

It would depend on how many items were dropped from layaways (on average). No, you wouldn't be able to resell an item, even upopened, for 90% of the purchase price, but if the drop rate was relatively small, it might still be worth it.

Then the question arises, if the customer makes weekly payments up to , say, 50% and then changes their mind, do they get a refund (not counting the 10%, of course)?

 

I'd say no refunds, because what are you going to do with the item your stuck with and had to pay for upfront? Unless you paid cash, you're getting charged interest rates while they make payments.

 

And if you did pay cash, you are foregoing the return you could have made on that money otherwise.

 

You would do all that for a 10% fee? You would have to go to the other location (Wal-mart, Target, etc.) purchase the item, advance to funds, then have space for storage. 10% would not cover your gas, cost to rent/own space, etc. Looks like bad business plan.

With credit cards a consumer can purchase an item and depending on your credit card billing cycle get up to about 50 days deferred payment plan without paying any interest. Example, your credit card billing opening and closing dates (11/19/07-12/18/07) and your payment is due on January 7, 2008. Purchase an item on November 19 and you don't have to pay until 50 days later. No interest. Store the item purchased at a relatives house and you have about the same as a layaway plan.

 

For a one off, I would agree. However, if layaways are popular, it should eventually pay for itself.

 

Why can't people just save $20.00 a week, put in a Christmas account at their bank and viola'....no layaway needed.

 

No where to hide it either :neutral:

 

Do banks still offer Christmas accounts?

 

mine does (SECU)

 

Well, from what I understand of it from last year their reason was stated as they had to resell items left on layway the same as they would an open box item. And too, to push the giftcard/store CC's. Which both sorta make sense; the last one make more.

 

I was at K*mart last week, and saw someone putting something on layaway. It's the one in Smithfield.

 

By the time you have the money, the shelves are often picked through...and item you wanted is no longer in stock because everyone else wanted it too.

 

http://www.msnbc.msn.com/id/27582079

just an FYI, TJ Maxx, Goodys and some others listed now have layaways