More shoppers turning to layaway

Linda Dowdy remembers when she used layaway plans to get Christmas gifts for her children.

"It was easy. We could pay a little down and then pay every week until we had the items paid for, and then we'd have them for Christmas," said Dowdy, a former Colbert County resident.

"If it hadn't been for layaway, I don't know what my children would have done for Christmas years ago," said Wanda Miller, a Florence resident. "That's been years ago, and I haven't used layaway in a long time, but back then that was the only way we had to get their gifts. It just made it a lot easier."

With the uncertainty of job security and the lingering threat of doom and gloom for the nation's economy, retailers say more people are turning to the once-popular layaway plans this shopping season.

The concept allows consumers to pay a percentage of the total cost of the merchandise, then make weekly or bi-weekly payments until Christmas. In many cases, retailers want the layaway items to be picked up within the first two weeks of December.

"We've always had layaways, but this year it's been used more than ever," said Brenda Bryant, manager of Kmart in Muscle Shoals. "We've got several customers who have used layaway for years, but this year, we're also seeing people use layaway for the first time."

While Kmart and several other businesses have maintained their layaway policies for years, this year the Sears-Kmart company launched a big advertising campaign promoting layaway.

"Layaway offers consumers enormous value during tight economic times this upcoming holiday season," said Tom Aiello, a vice president of public relations for Sears/Kmart. "It gives consumers the freedom to shop early to secure those hard-to-find gifts, and it allows them to shop without incurring credit card charges."

Miller and Dowdy said they haven't used layaway plans in many years, but are once again considering it.

According to published reports, the local shoppers aren't alone. Reports indicate that layaway appears to be making a comeback nationwide.

Burlington Coat Factory Warehouse Corp., which has a facility in Huntsville, saw its percentage of layaway sales grow from 4.6 percent in August to 5.3 percent in September.

Reports indicate that the layaway plan got its start during the Great Depression but was largely phased out in the past couple of decades because of the economic upswing and more and more consumers began using credit cards.

Walmart discontinued the practice in 2006 and, according to a company spokeswoman, there is no plan to bring it back.

Mike Manos, operations manager for Martin's Family Clothing in Florence, said, at the moment, there is no layaway program.

"We're so far into season that we're not ready. We have had a layaway in the past, but it's been years ago," he said.

Kohl's doesn't have a layaway program, but they do have a "hold policy."

"Our policy is to hold items for one day, but, whatever it takes to satisfy customers, we'll do," said Patty Black, operations manager at the Florence location. "Typically, we won't hold things longer than three days, and that works well for us. Of course, we don't require a customer to put money down, but it's something we do for their convenience."

Businesses such as J.C. Penny, Dillards and Belk do not offer layaway plans. TJX COs offers layaways at its Marshalls and TJ Maxx stores as well as nearly all of its A.J. Wright locations.

Also, Goody's Family Clothing offers layaways.

"We do layaway, and it's never stopped," said Connie Coffey, key carrier and a department head at Goody's. "It's been very popular this year, and people are already using it to lay away coats, sweaters and holiday gifts."

She said store officials started noticing layaways increasing early in October.

"(Layaways) have always been good for us and for our customers who really couldn't get or didn't want to apply for a credit card or didn't qualify for a credit card," Coffey said. "It will boost our numbers for the holiday season. It starts picking up about the time when people get their Christmas Club money. The average layaway amount is between $100 and $300 for this time of year."

Sears announced this week that beginning Sunday, the company will offer layaway on a wide selection of merchandise.

"Our customers are talking, and Sears is listening," said Don Hamblen, Sears chief marketing officer.

"In this difficult economic climate, extending the layaway program at Sears is an easy decision and one that we hope will provide additional value to our customers. We want our valued Sears customers to be able to stay within their holiday budgets this year."

One economic expert said the practice isn't likely to make a full-fledged return anytime soon.

"I don't think it's a trend that will continue to grow," said Kathy Grannis, a spokeswoman for the National Retail Federation. "Consumers would much rather have the merchandise with them and make payments on it while they own it, instead of having something sit at the store."

that they can't have right away."

Bryant said many people use layaways because of credit problems or no credit cards.

Aiello said consumers appreciate the opportunity to jump on early sales as well as spreading their payments over a more manageable period of time.

"Layaway also has the added benefit of keeping gifts away from the wandering eyes that may be taking a peak at their holiday gifts," he said.

For whatever reason, layaways appear to be on the upswing.

"With money the way it is right now, I'm sure more people are going to consider layaways once again," Dowdy said. "I know I am."

Tom Smith can be reached at 740-5757 or tom.smith@TimesDaily.com.

Staff Writer Michelle Eubanks and the Associated Press contributed to this report.