With all the talk recently about the possibility that the U.S. could be facing economic conditions not seen since the Great Depression, the question arises as to whether a retailing invention created in the 1930's is ready to make a comeback at stores and on websites across the nation.
Layaway programs were once fairly common before Americans began signing up for credit cards in large numbers and accumulating debt in the process. In recent years, however, Walmart and other stores have ceased offering the service citing high expenses and low returns.
Today, Kmart is one of the few remaining major retailers that allow consumers to pay off a purchase over time.
Dennis Hill, the manager of a Kmart in the Boise, Idaho area, told 2NEWS.TV that interest in the store's layaway program has been growing.
"It's a monthly question," Mr. Hill said. "People will come in and say, 'Gee are you going to keep your layaway? Everybody else has shut there's down.'"
Mary Wilson, owner of Ishi Boutique in Boise, is another merchant that offers layaway.
"I think everybody's credit is a little bit tighter and this gives them another option," said Ms. Wilson.
Consumers also have the option of going online to purchase products on layaway. The website, eLayaway, boasts roughly 700 merchants on its program. The company allows consumers to purchase products over time charging shoppers a flat 1.9 percent transaction fee on all purchases.
Discussion Questions: Will consumers cut back on their use of credit cards in making retail purchases considering current economic conditions? Is the time right for layaway programs to make a comeback at retail?