While many retailers have done away with layaway programs, citing the high cost of managing the programs and low comparative returns, others such as Kmart have benefited from filling the void. Kmart's parent company, Sears Holdings, said it saw double-digit growth in the program between 2008 and 2009 as more than three million went the layaway route.
According to Mark Snyder, chief marketing officer of Kmart, the company's research has found that 70 percent of consumers have changed their shopping behavior as a result of the recession.
In an interview with CNBC, Mr. Snyder said, "The recession has taught [consumers] that they've got a ton of choices. They recovered their full power as shoppers and they're out there using it."
Many, Mr, Snyder asserted, are using layaway as they plan purchases to avoid taking on further debt now.
"In February, she's buying outdoor living sets," Mr. Snyder said. "It's still snowing outside, but she knows in eight weeks they're going to begin to move outside again, [and] she wants a new patio set."
Discussion Questions: Will the demand for layaway programs lessen as the economy rebounds? Will layaway be a valuable differentiator for retailers moving forward?