Monday night we saw a commercial for a large discount store (we’re not being vague; we honestly can’t remember which one) advertising the ability to buy things on layaway. And we thought, People still do that? Apparently they don’t, but they are now. Buying things on layaway, the LA Times reports, is making a comeback.
LA Times: After pulling back on layaway programs for years, retailers are again touting the service as a financially savvy way to buy goods this holiday season. Cash-poor and credit-strapped shoppers are responding by flocking to layaway counters at stores such as Kmart, Marshalls and Burlington Coat Factory, and using online options such as ELayaway.com.
“The response has just been tremendous,” said Tom Aiello, a spokesman at Kmart, which is running a national holiday ad campaign to hype its longtime layaway service. “We know for a fact that it’s a big increase over the usage from last year.
The latest item you can buy on layaway: a house.
WSJ: [N]ow that creative financing — including no-money down deals — is history, and a down payment is essential for a loan, [home] builders are going retro, offering to help buyers (gasp!) save their money. The latest variation mimics department stores’ layaway plans or the Christmas clubs of long ago.
Hovnanian Enterprises’ mortgage operation is preparing a national rollout later this month of the “PASSBOOK to the American Dream” campaign, which puts contracted buyers on a plan to save up the down payment in time for closing. Beazer Homes USA, meanwhile, is touting its “Buy & Save” plan, keeping buyers on a “steady savings track.” Centex Corp. is considering something similar…
Business Insider Emails & Alerts
Site highlights each day to your inbox.