With very few other retailers offering layaway programs, Kmart has a point of difference in the market. Now, the retailer is looking to draw even further attention to that difference and bring in new customers by promoting a five percent discount on layaway purchases made for back-to-school.
To qualify for the discount, Kmart customers put down $15 or 10 percent of the purchase amount, whichever is greater, and pay a $5 fee. The offer is good until August 18. The program is also available to online shoppers. Kids going back to college can pick up items ordered online at Kmarts close to their school.
"Kmart understands shoppers are seeking value and convenience," said Andy Stein, interim chief marketing officer, Kmart, in a statement. "Kmart is committed to helping manage back-to-school expenses by offering customers additional ways to pay, including five percent off of their layaways."
Back-to-school is a critical period for many retailers, ranking second only to the Christmas holiday season as the biggest of the year for many merchants. This year the National Retail Federation is predicting a significant upswing in purchases with total spending expecting to hit $30.3 billion. The average person with kids in grades K-12, according to a BIGinsight survey, is expected to spend $688.62 this year versus $603.63 in 2011.
Kmart is going beyond its layaway offer to drive back-to-school traffic. As part of its Shop Your Way rewards program, the chain is offering a free flu shot and gas rewards with qualifying purchases.