Wal-Mart Stores to cease layaway service

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Wal-Mart Stores Inc. will end layaway service this year due to falling demand and rising costs, scrapping a tradition started when Sam Walton founded the chain in 1962 catering to cash-strapped rural shoppers in northwest Arkansas.
Wal-Mart said Thursday it will stop accepting layaway items Nov. 19 with a pickup deadline of mid-December. In its layaway program, customers make a down payment to hold an item and then generally had up to 60 days to pay it off, with a shorter deadline in the peak Christmas season.

Layaway services are used mainly by people at the lowest end of the income scale, who don't have credit cards and may not qualify for credit, analysts say.

The move comes as Wal-Mart is changing on many fronts, from adding upscale fashions to targeting new urban customers, in a bid to revive growth rates that have fallen behind smaller rivals such as Target Corp.

"Demand for layaway service has declined steadily as consumers turn to current options including online shopping, shopping cards and no-cost credit alternatives that were not available when the company was started," said Pat Curran, executive vice president of Wal-Mart store operations.

Analysts said most retailers have already dropped layaway service as it is expensive and cumbersome. Merchandise can be tied up for months and employees have to keep track of a steady trickle of payments.

One holdout is Kmart, a wholly owned subsidiary of Sears Holdings Corporation, which issued a statement Thursday stating that it continues to offer layaway services at its 1,300 stores.

"This is another recognition that Wal-Mart is no longer a little Ozarks company but instead is the nation's largest private employer and the world's largest retailer," said Patricia Edwards, portfolio manager and retail analyst at Wentworth, Hauser & Violich in Seattle, which manages $8.2 billion in assets and holds 51,000 Wal-Mart shares.

Still, Wal-Mart's union-backed critics said the move marked another step away from its founder's vision.

"Sam Walton's Wal-Mart — the one that 'bought American', treated workers with some dignity, and gave low income customers a chance to buy an expensive item over time — that Wal-Mart is now on permanent layaway," said Chris Kofinis, spokesman for WakeUpWalMart.com.

It is Wal-Mart's latest break with tradition this year.

Wal-Mart introduced pay caps for hourly workers last month after four decades of no limits on annual merit raises. It stopped selling guns in about a third of stores to make room for more non-hunting sporting gear. It is also tailoring stores to local demographics rather than stocking all Wal-Marts alike.

Wal-Mart said it is working on ways to make other payment methods available to shoppers with limited credit, such as Wal-Mart-specific cards that offer zero interest for the first 6 to 12 months.

Edwards said dropping layaway will not chase off Wal-Mart's lowest income shoppers because those customers still need low prices. Getting some of those shoppers to take in-house credit cards can also mean more money for the chain in the form of card fees.

Wal-Mart's shoppers have an average household income of around $30,000 to $35,000 a year, compared to $50,000 to $60,000 for customers at smaller rival Target Corp., Edwards said.

Wal-Mart spokeswoman Linda Blakley said that, as demand for layaway has dropped, the costs have gone up since the department has fewer customers.

Blakley said she did not have a precise estimate for the number of Wal-Mart's more than 1.3 million U.S. employees who will be affected.

But she said a typical layaway department has three employees. Multiplied by Wal-Mart's 3,256 U.S. discount stores and Supercenters, that would mean around 10,000 could be impacted somehow. Wal-Mart said layaway employees will be encouraged to seek new opportunities in their stores.

"We will do whatever we can to help them find those new positions," Blakley said.

Wal-Mart stores shares rose 29 cents to close at $48.37 Thursday on the New York Stock Exchange.

Wal-Mart Stores to cease layaway service - Yahoo! News
 
be careful watch monster walmart lol

Wal-Mart Stores Inc. will end layaway service this year due to falling demand and rising costs, scrapping a tradition started when Sam Walton founded the chain in 1962 catering to cash-strapped rural shoppers in northwest Arkansas.
Wal-Mart said Thursday it will stop accepting layaway items Nov. 19 with a pickup deadline of mid-December. In its layaway program, customers make a down payment to hold an item and then generally had up to 60 days to pay it off, with a shorter deadline in the peak Christmas season.

Layaway services are used mainly by people at the lowest end of the income scale, who don't have credit cards and may not qualify for credit, analysts say.

The move comes as Wal-Mart is changing on many fronts, from adding upscale fashions to targeting new urban customers, in a bid to revive growth rates that have fallen behind smaller rivals such as Target Corp.

"Demand for layaway service has declined steadily as consumers turn to current options including online shopping, shopping cards and no-cost credit alternatives that were not available when the company was started," said Pat Curran, executive vice president of Wal-Mart store operations.

Analysts said most retailers have already dropped layaway service as it is expensive and cumbersome. Merchandise can be tied up for months and employees have to keep track of a steady trickle of payments.

One holdout is Kmart, a wholly owned subsidiary of Sears Holdings Corporation, which issued a statement Thursday stating that it continues to offer layaway services at its 1,300 stores.

"This is another recognition that Wal-Mart is no longer a little Ozarks company but instead is the nation's largest private employer and the world's largest retailer," said Patricia Edwards, portfolio manager and retail analyst at Wentworth, Hauser & Violich in Seattle, which manages $8.2 billion in assets and holds 51,000 Wal-Mart shares.

Still, Wal-Mart's union-backed critics said the move marked another step away from its founder's vision.

"Sam Walton's Wal-Mart — the one that 'bought American', treated workers with some dignity, and gave low income customers a chance to buy an expensive item over time — that Wal-Mart is now on permanent layaway," said Chris Kofinis, spokesman for WakeUpWalMart.com.

It is Wal-Mart's latest break with tradition this year.

Wal-Mart introduced pay caps for hourly workers last month after four decades of no limits on annual merit raises. It stopped selling guns in about a third of stores to make room for more non-hunting sporting gear. It is also tailoring stores to local demographics rather than stocking all Wal-Marts alike.

Wal-Mart said it is working on ways to make other payment methods available to shoppers with limited credit, such as Wal-Mart-specific cards that offer zero interest for the first 6 to 12 months.

Edwards said dropping layaway will not chase off Wal-Mart's lowest income shoppers because those customers still need low prices. Getting some of those shoppers to take in-house credit cards can also mean more money for the chain in the form of card fees.

Wal-Mart's shoppers have an average household income of around $30,000 to $35,000 a year, compared to $50,000 to $60,000 for customers at smaller rival Target Corp., Edwards said.

Wal-Mart spokeswoman Linda Blakley said that, as demand for layaway has dropped, the costs have gone up since the department has fewer customers.

Blakley said she did not have a precise estimate for the number of Wal-Mart's more than 1.3 million U.S. employees who will be affected.

But she said a typical layaway department has three employees. Multiplied by Wal-Mart's 3,256 U.S. discount stores and Supercenters, that would mean around 10,000 could be impacted somehow. Wal-Mart said layaway employees will be encouraged to seek new opportunities in their stores.

"We will do whatever we can to help them find those new positions," Blakley said.

Wal-Mart stores shares rose 29 cents to close at $48.37 Thursday on the New York Stock Exchange.

Wal-Mart Stores to cease layaway service - Yahoo! News
dont look at walmart is 666th title walmart is 6 point waltson 6 point wage 6 ponit of title 666th!!!!!!!!!!!!!! :eek3: about money for crime? lol
 
I never knew that Wal-Marts had layaways. :-o
 
shh be careful

I never knew that Wal-Marts had layaways. :-o
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Whatever... :ugh:
 
Fortunately, shoppers who prefer layaway to make purchases can turn to a new online alternative. Elayaway is beta testing and integrating with a host of merchants who will soon offer their new online payment option. Just like traditional layaway, shoppers select a product and pay for it over time with delivery upon full payment. For customers, it frees them from long lines at the store and gives them a convenient way to pay over time for their purchases without relying on a credit card. For retailers, it eliminates the overhead costs and inventory challenges associated with traditional layaway. Also, since eLayaway payments are made through regular, automatic withdrawals, the system is more convenient for customers and more reliable for merchants. Elayaway is adding new merchants all the time and is planning a full, national role out in January 2007. Check out http://www.eLayaway.com for more information and updates.
 
layaway is popluar around Christmas time. I do that annually because it is easy to be hidden till I pay it off and by Christmas gets here, the gifts are wrapped.

Oh, well! I guess I have to go little by little start next year!
 
I've had a few friends complain that certain products were "out of stock" due to being on layaway for other customers who don't pay on time. :roll:
 
I've had a few friends complain that certain products were "out of stock" due to being on layaway for other customers who don't pay on time. :roll:

same here and ive had it happen to a few things i wanted last year. i like layaway but i think walmart is doing the right thing. it ties up a lot of their stuff that they cant sell (yet) but may not get the money for. kind of like credit without the credit card. its how i made payments on a nice television last year.
 
Hey People..

I thought I'd share with all of you on this.. Hard to believe.. due to the fact that Walmart will stop layaway and alot of people will need to save money to buy stuffs and etc. So look at this and you will see how many days you have left till Christmas! :run: :eek:

Merry Christmas
 
Yeah I know and my mom works there.. eh that sucks. She said that they are losing a lot of money because some ppl get stuff on layway and not pay it at all.. .
 
if people not pay .. and not pay on time.. the people will lose money? depend on date if before due date you can get your refund back.. but if after you will not get none back..
 
I have three cook off shows coming up and I'm not worried because I could use that forward to Christmas. I had no idea that Wal-Mart had layaways, If I knew that before I would have put Christmas in layaway at Wal-Mart, but I shop at Toy's R Us the most, or at Game shop :)
 
yeah Walmart had layaways for years.. but that will be stopped in nov.. so only one month to do it.. if u wanna .. do it now.. while u have time.. then in nov u are on your own.. i think they should keep continue layaways especially for christmas?? i think its not fair.. but then its their choice.. so what can we do? nothing but save money and buy gifts for our kids.. ;)
 
Thanks to those people who didn't pay on time. We get no layaways cuz of them. That's unfair, they should just not allowing those who don't pay on time to put anything in layaways. Why didn't they do that?
 
It is repost .. I cant find somewhere who did post that links in here AllDeaf :)

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LOL! I wanted to do that just once.
 
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