There hasn't been a lot that has gone right at Kmart in recent years, but its decision to continue offering layaway appears to have been the right decision in light of the current financial challenges facing American consumers.
It also appears that Sears, Kmart's sister-company, also thinks the time is right for layaway now that the department store chain has announced it would resurrect its program nearly two decades after getting out of it. Sears' new layaway program will go into effect this Sunday and will cover all merchandise sold in the retailer's stores.
"Going into the holiday season with the economic uncertainties we all face, we just wanted to be very mindful and attentive and help support our customers," Don Hamblen, chief marketing officer at Sears, told The Associated Press.
George Rosenbaum, chairman of Leo J. Shapiro and Associates, believes offering layaway will benefit Sears. "This is a tool that people are going to use quite heavily this Christmas in those stores that have it available. And then retailers will see whether this was a great thing they missed and whether they should install it next year," he said.
Discussion Questions: Will bringing back layaway help or hurt Sears for the Christmas selling season and beyond? Do you see other large retail chains following the lead of Kmart and Sears on layaway programs?