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Wal-Mart Ending Its Layaway Program

September 15, 2006

Wal-Mart • General Complaints • Auto Service & Lube • Black Friday • Customer Service • Dangerous Products, Conditions • Grocery/SuperCenters • Lawn & Garden • Monogram Credit Card Bank • Pet Department • Pharmacy • Photos • Pricing Disputes, Errors • Returns • Sporting Goods • Tire Centers • Vision Center • WalMart.com --- • Employees Complaints --- News • Wal-Mart Settles Massachusetts Workers' Suit • Wal-Mart Employees Going Checkless • Wal-Mart Dominates Christmas Shopping • California Consumers to Get $3 Refunds from Wal-Mart • Wal-Mart Selling Bassinets Blamed for Killing Two Babies • Wal-Mart Gaining On Grocery Chains • Black Friday Ads Target Wal-Mart • Wal-Mart Era Is Over, Wall Street Journal Declares • Consumers Respond to Toxic Wal-Mart Pet Toy Stories • Wal-Mart Expands $4 Generic Program • Lab Tests Find Lead, Other Toxins in Pet Toys Sold at Wal-Mart • Wal-Mart Plans Its Own Debit Card • Wal-Mart To Open In-Store Health Clinics • Wal-Mart Gives Up Bank Plans • Congressman Challenges Wal-Mart Banking Plans • Wal-Mart Expands Generic Drug Plan • Christmas Returns to Wal-Mart • Wal-Mart Jump-Starts the Holiday Shopping Season • Wal-Mart Cuts Generic Rx Prices To $4 In Florida • Wal-Mart Ending Its Layaway Program • FDIC Puts Retailers' Banking Plans on Hold • Wal-Mart/Sam's Club Settle with Connecticut on Pricing Violations • Congress May End Wal-Mart's Banking Dreams • Arizona Charges Wal-Mart, AutoZone with Consumer Fraud • Michigan Fines Wal-Mart $1.5 Million for Item Pricing Violations • Opposition Grows as FDIC Examines Wal-Mart Banking Bid • Wal-Mart's Banking Plans Draw Critics • Michigan Challenges Wal-Mart on Item Pricing • Wal-Mart May Stock "Emergency" Contraceptives • Black Friday Gives Wal-Mart a Black Eye • Connecticut Probes Wal-Mart Pricing • Wal-Mart Pushing Extended Warranties on Electronics • Bankers Oppose Wal-Mart's Entry into Banking • Wal-Mart Target Of Union-Led Boycott • Wal-Mart to Pay $14.5 Million for California Gun Law Violations • Wal-Mart Target Of Union-Led Boycott • Wal-Mart Tries to Buff Its Image

A tradition of American retailing, the layaway plan, is fading away at the nation's largest retailer. Wal-Mart has announced it is phasing out its layaway program because of increasing costs and declining use.

With the layaway plan, consumers who cannot afford to pay the full price of a particular item may put it on "layaway," picking it up and paying for it at a later date, when they have the money.

Wal-Mart said it is exploring other financing options to take the place of its layaway program.

"Demand for layaway service has declined steadily as consumers turn to other options, such as online shopping, gift cards and no-cost credit alternatives," said Pat Curran, a spokesman for Wal-Mart.

The retail giant said consumers who apply for a new Discover or Wal-Mart credit card will get $20 cash back if they purchase at least $100 on their card on the same day.

The company said customers can also make zero-interest payments on merchandise up to 12 months if they have a Wal-Mart account.

Meanwhile, Wal-Mart competitor Kmart said it has no intention of doing away with its layaway program.

Kmart senior vice president Don Germano told Reuters that the layaway program is offered as a convenience to customers who have purchased an item as a gift and want to keep it a secret.

"Layaway service is a way for gift-givers to keep presents away from prying eyes," Germano said.

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