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Layaway is a money losing proposition for retailers.
1. When an item is placed on layaway, it is not considered sold until it has been paid for in full and removed from the store. This ties up the store's merchandise budget so they have less money available to purchase new merchandise.
2. Frequently, items are placed on layaway and never picked up. The retailer is forced to sell the item at a deep discount because it is out of season or no longer carried in the store. Any forfeited deposits do not usually cover the loss in price.
3. One of the measurements the accountants use to determine how well a company is doing is inventory turnover. Layaway slows down the turnover rate because merchandise lingers in the store.
4. It removes items from the sales floor and irritates customers who did have the money on hand to purchase the item.
5. Staffing and maintaining a layaway department is considered an unnecessary expense.
6. Walmart is now offering a credit card for people who would rather pay over time.
Doing away with the layaway program really won't make a noticeable difference in their total sales but it will eliminate significant expenses. I would expect most other places to eliminate their layaway programs in the near future.
Why not just open a savings account and make a little interest on your money? If you can make layaway payments, you can stick the same amount of money in a savings account. I stick $15 - $20 per week in mine all year and then I have cash on hand for holiday shopping without worrying about layaway.
lil ol me
not here in san diego
Aubrey
nope
SAA
wal-mart supports sweat shops...why would you give your money to them?
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