Blogger's insight into Wal-Mart Layaway ending

[mjbaby]

http://bbcamerican.blogspot.com/2006/09/thoughts-on-layaway_19.html


Tres interesting, no?

 

[drgnfly30]

Couple of points... it's been awhile since I did a Layaway but I don't believe it's free as the blogger indicated...usually there is a small layaway fee.

Also regarding the banking venture... my employer used to issue Wal-marts co-branded MasterCard... trust me.. no one that is in 'bed' with Walmart on any financial ventures is making any money....

 

[Poohlovr]

Told to me by a Wal-layaway employee--

Wal-Mart doesn't (didn't??) charge a layaway fee.

They have ended their layaways because they were losing money on their layaway dept year-round, except at Christmas.

Two reasons--

1. People put layaways in and didn't get them out, only showing up after 2 months (when the layaway was cancelled) to get their money back. By this time, the merchandise may have been marked down and Wal-Mart lost out on some (or all, depending on the % of the mark down) of their profit margin.

2. People put layaways in, then as the merchandise was marked down, would get price adjustments on their layaway. In essence, they were buying (usually clothes) when there was a good selection, but only paying clearance prices for them.

 

[CajunDixie]

My comment quote from the above blog.

In regards to WalMart store credit cards and Carmen's comment. Recently on CreditBoards.com a person with a very low credit score and a few bad tradelines was approved for the WalMart card. However, the limit was only $75 but she was assured by other posters there that increases can be asked for and received every few months.

I'm guessing WalMart lowered their standards when it comes to issueing new credit. It's a win-win situation for them as I see it. Not only will they be selling the items for full price but they'll also be collecting interest. On the downside for them issueing credit to someone that doesn't pay their bills will eventually cause them problems down the road.

 

[texasthree]

Couple of points... it's been awhile since I did a Layaway but I don't believe it's free as the blogger indicated...usually there is a small layaway fee.

Layaway at Walmarts is free.
I am kind of sad to see it go eventhough I only used it once. It worked great last christmas to "hide" the presents from my son.

 

[CarolA]

Told to me by a Wal-layaway employee--

Wal-Mart doesn't (didn't??) charge a layaway fee.

They have ended their layaways because they were losing money on their layaway dept year-round, except at Christmas.

Two reasons--

1. People put layaways in and didn't get them out, only showing up after 2 months (when the layaway was cancelled) to get their money back. By this time, the merchandise may have been marked down and Wal-Mart lost out on some (or all, depending on the % of the mark down) of their profit margin.

2. People put layaways in, then as the merchandise was marked down, would get price adjustments on their layaway. In essence, they were buying (usually clothes) when there was a good selection, but only paying clearance prices for them.

I think 2 is a big issue. I read several posts on here last year where folks put "Black Friday" stuff in layaway in the weeks prior so that they could avoid standing in line on Friday and still get the deal....

 

[Vickie46]

I think we should all call 1-800-walmart and voice our opinion... they are not going to know if we don't tell them... it couldn't hurt.. I will miss layaway!

 

[MrsPete]

I think the blogger is right on target.

Walmart wants to make money (as do all businesses). They can offer layaway for free, which ties up their merchandise and their space. Layaway holds several pitfalls for the store: if they lose merchandise, the customer's mad; however, if the customer decides to return the items, the store may have already put them on sale /clearance. Or they can offer credit cards, which encourages people to shop at their store AND allows them to collect mega-interest.

For many people layaway and credit cards accomplish the same purpose: they allow them to shop when they don't have money to pay. But the layaway doesn't benefit the store as much.

 

[loveswdw]

We just put some Mickey Mouse Clubhouse stuff on layaway at Wal-Mart for DS2. We did so because we don't want to have to hide it for so long. We are already hiding many Thomas the Tank engines and track pieces so we just didn't have the space. Our layaway has to be out by Dec. 2 and ALL layaways must be out by Dec. 10th I believe. They told us if any layaway wasn't out by then you'd lose your money and your merchandise.

I had forgot about the markdowns. We did put some clothes on layaway last year and when the time came around to get it out they were marked down. They automatically rang up with the adjusted price. I was pretty happy to say the least. I got a couple of pairs of PJs for I think $2 or $3 a piece. I didn't realize when I put them in that they would adjust the price automatically when it came time to get them out.

Christmas is the only time we've ever used layaway so I guess we'll adjust.

 

[DizzKneeLand]

Layaway is a great tool - when you are at a store - see the LAST one of an item that you know is way to big to fit in the vehicle you have with you.

Put the item in Layaway - come back with the truck and get your item.

Just my 2 cents
DizzKnee

 

[shelly3girls]

Told to me by a Wal-layaway employee--

Wal-Mart doesn't (didn't??) charge a layaway fee.

They have ended their layaways because they were losing money on their layaway dept year-round, except at Christmas.

Two reasons--

1. People put layaways in and didn't get them out, only showing up after 2 months (when the layaway was cancelled) to get their money back. By this time, the merchandise may have been marked down and Wal-Mart lost out on some (or all, depending on the % of the mark down) of their profit margin.

2. People put layaways in, then as the merchandise was marked down, would get price adjustments on their layaway. In essence, they were buying (usually clothes) when there was a good selection, but only paying clearance prices for them.

I know people who do #2 just to get sale prices. I can see why Walmart would want to stop this. I also see how people living paycheck to paycheck depend on layaway. I know people personally who this will really hurt.

 

[starwishing]

I am going to miss layaway...it was fun being there at 5 am the day after Thanksgiving to get all the bargains. (I know.....I'm crazy!!)