Walmart Layaway

[summerrluvv]

You are so wrong. Obviously you aren't able to use a CC on a daily basis for convenience and then pay it off each month. It has nothing to do with not having money and everything to do with convience. Oh, and those nice little CC extras we get!

Why would you assume I don't pay my credit card off every month? I'm simply making a point about lawaway being the same as buying something now with a CC and paying for it later.

 

[cardaway]

Another reason the CC - layaway comparison doesn;t work is that the store gives you the item when you pay with a credit card. Part of argument against layaway is the increased work for the store to keep track of the item for the customer.

 

[summerrluvv]

Not quite. I use a CC for everything. It isn't because I don't have the money to buy the stuff. It's just that I don't want to carry that much money around on me. We charge everything, including groceries and pay it off every month. If I remember correctly the layaways were a lot longer then a month. No comparison if the CC gets paid every month.

It's 2 months and who says that people leave it in there that long? Maybe people get it out in four weeks, maybe in 2, maybe in 6. Who cares really. They aren't racking up debt, they aren't pinning their debt on society, so really why is there even a debate about this? Why would anyone bash anyone who chooses to use something like lawaway that is free anyway?

 

[DISUNC]

(wouldn't bother me, cause I can't afford to go even with making payments)

Maybe next year!

 

[summerrluvv]

Another reason the CC - layaway comparison doesn;t work is that the store gives you the item when you pay with a credit card. Part of argument against layaway is the increased work for the store to keep track of the item for the customer.

...but why does anyone care if it's increased work for the store? Unless you work there, it really shouldn't be an issue. It's a convenience for customers. Walmarts prices are so darn low that I don't think we are going to see them go any lower after they shut down lawaway.

 

[Geoff_M]

There is an article in today's Lexington Herald Leader regarding the change, and how much the local KMArt's sales have increased since the announcement by Wal Mart. Several interviewed by the paper stated they were at KMart solely due to the fact that Wal Mart was doing away with layaway. Meijer still has layaway for those in the Great Lakes region.

I assume this is the article you are referring to: Link It comments that there's been a noticeable uptick in business at the K-marts' layaway counter, but keep in mind that given the overhead costs associated with layaway, this increase in sales may not translate into an increase in profits. K-mart, in the end, may not be too happy about being on the receiving end of Wal-mart's layaway "burden".

I'm not sure that stores really want to encourage credit card purchases over layaway plans. They have to give 2-3% to the CC company for the purchase. For small layaways, that 2-3% is cheaper than manpower, but for high ticket items-I would want to keep that money in house.

This doesn't apply with the CC issuer is you. Wal-mart and others are offer their own "no money down, no payments for X months" credit programs.

I think it's safe to say that the financial analysts at Wal-mart looked at the industry trends, looked at their customers' usage trends, looked at the costs associated with offering the service, and figured in that it'd tick some people off that'd go elsewhere and decided that it didn't make sense to continue the program. Once upon a time layaway was used as an effective means to produce incremental sales... stores never offered the service merely to "be nice" to their customers. Wal-mart has joined the party of retailers that have decided that the program isn't helping their bottom-line like it used to and have therefore dropped it.

As others have pointed out, financially, a Christmas Club account is a perfectly good alternative to using layaway. If you have money to put against the stuff you have on layaway, you have it to put into an account that'll at least pay you a little interest on top. And if in the end you've decided that someone's been naughtier than nice, you can take the money and do something else with it.

If you're someone that used Wal-mart to hide your "big stuff", then can you blame Wal-mart for not wanting to spend the resources to warehouse it for you for free???

 

[Hannathy]

That is the big fallacy Layaway isn't free! It costs the company money and translates into costing all customers money.

 

[DaisyD]

Why would you assume I don't pay my credit card off every month? I'm simply making a point about lawaway being the same as buying something now with a CC and paying for it later.

I assume it because you are using a wrong comparison. I don't do cash because I don't want to carry such large sums. I bought a new fridge today. It was $2800. Do you think I should be carrying that much cash around in my wallet? I also bought 4 pairs of shoes which was another $300. I don't care that much either. I use my CC to earn perks and also so I don't have to haul arould a lot of cash. Layaway is no comparison.

 

[summerrluvv]

I assume it because you are using a wrong comparison. I don't do cash because I don't want to carry such large sums. I bought a new fridge today. It was $2800. Do you think I should be carrying that much cash around in my wallet? I also bought 4 pairs of shoes which was another $300. I don't care that much either. I use my CC to earn perks and also so I don't have to haul arould a lot of cash. Layaway is no comparison.

Perks aside,a debit card can be used the same way. I use my debit card for just about everything. It's backed by Visa and has zero liability.

Oh and ETA, I pay my bills in full each month, when I use them. You know what they say about assuming don't you

 

[Nancy]

Maybe next year!

Only if I win a trip or the lottery!

 

[JR6ooo4]

...but why does anyone care if it's increased work for the store?

Are you serious?
The discussion is about people missing layaway and has expanded into why the store may be discontuning it. I would be amazed if anyone will discuss this with you further after reading such a fundamentaly defunct statement.

Is not "income and expenditures" chapter one in finanace 101?

Darn, I guess I just amazed myself!

Mikeeee

 

[Nancy]

That is the big fallacy Layaway isn't free! It costs the company money and translates into costing all customers money.

And I always paid a fee to Kmart and Hills for the layaway, so it isn;t free for the customers. I want to say it was either 3 or 5 dollars, not a lot but it was a fee...and if you cancelled the layaway you forfitted the fee. If you stopped making payments, you forfitted the fee. You could get your payments refunded but not that fee.

What I'm curious about now is how the layaway personel will be placed in the store. If they absorb them into other departments they will probably cut the hours of employees already in those departments. If my hours were cut because we HAD to take employees from another department I'd be a bit ticked. If it is a cost measure they have to pay those employees regardless of where they work in the store. To me it seems like it's more a merchandise issue, they want more room to stock merchandise, cause more merchandise means more sales.

 

[summerrluvv]

Are you serious?
The discussion is about people missing layaway and has expanded into why the store may be discontuning it. I would be amazed if anyone will discuss this with you further after reading such a fundamentaly defunct statement.

Is not "income and expenditures" chapter one in finanace 101?

Darn, I guess I just amazed myself!

Mikeeee

We already know why the layaway program was discontinued. That was the first 10 posts. The discussion turned into "let's slam people that use lawaway because they don't have the cash to buy the stuff." Then into "lets pay with credit cards..why even use lawaway to being with", then into "people that use lawaway are horrible because they cost the store money", yadda yadda yadda. I don't really care if no one wants to discuss it further. Really, I don't.

 

[Geoff_M]

What I'm curious about now is how the layaway personel will be placed in the store. If they absorb them into other departments they will probably cut the hours of employees already in those departments. If my hours were cut because we HAD to take employees from another department I'd be a bit ticked.

I'd like to answer that question, but apparently I need someone else's permission to post it here... oh, well, I guess I'll live dangerously!

Retailers have such a high rate of employee turnover, I'm sure that the people working the layaway departments were (or will be) easily absorbed into other parts of the story as others leave Wal-mart. I doubt the hours of other workers will be affected.

 

[english rose 47]

I'm not degrading Lay away or the people who use it, What I am saying is that as a customer if it is costing Walmart money which translates into higher costs for me I'm glad they are discontinueing it.

You really think that discontinuing Layaway will mean lower prices.. That I will believe when I see it.!! Personally for me I can buy Shopping cards each week to use for those special purchases and it would work okay, but I know this will be a real hardship for many poor and I mean poor families, whatever happened to the American Spirit .. Seems like all I'm hearing is Me Me Me and to heck with those less fortunate. Where is the pixie dust!! I'm really dissappointed in the mean spirit !!

 

[Tiffer]

Only if I win a trip or the lottery!

I am gonna play Mega Millions, If I win, you are getting a week in WDW at a deuxe resort!!!

 

[Tiffer]

I wonder what will some people will do IF WDW stops their LayAway program. No more 200.00 down and pay your trip off!!!!!!!!!!!!!!!!!!!!!

I would be very upset. I may not even be able to go. But knowing me...I'd find a way

 

[Nancy]

I am gonna play Mega Millions, If I win, you are getting a week in WDW at a deuxe resort!!!

AAAWWWWW Thanks, and if I win...I'll treat you!

 

[Nancy]

I'd like to answer that question, but apparently I need someone else's permission to post it here... oh, well, I guess I'll live dangerously!

Retailers have such a high rate of employee turnover, I'm sure that the people working the layaway departments were (or will be) easily absorbed into other parts of the story as others leave Wal-mart. I doubt the hours of other workers will be affected.

I see your point and that probably is true of most retail stores. I work in a popular grocery store wheere I live, so I guess I see it from my store's view. We don't have high turnover rates and we just closed a store with about 250 employees in it. Some of those were older and they did retire, but most stayed with the company. These employees were absorbed into the other stores in the area and already my daughters hours are cut in half because her department took in 2 FT and 1 PT employee, so this week she has a whole 8 hours. My hours will never be affected cause I'm full time. (plus I am so important to the store that they would never cut my hours! LOL!)

 

[DaisyD]

It's 2 months and who says that people leave it in there that long? Maybe people get it out in four weeks, maybe in 2, maybe in 6. Who cares really. They aren't racking up debt, they aren't pinning their debt on society, so really why is there even a debate about this? Why would anyone bash anyone who chooses to use something like lawaway that is free anyway?

I'm not one of the ones bashing layaway users. I couldn't care less what happens as I don't use layaway and I despise Walmart! I just posted that there is a huge difference between layaway and using a CC and paying it off at the end of the month. Folks on this thread seem to use layaway a lot longer then 4 weeks so that doesn't count either.