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Associated Press, Anne D'Innocenzio | Tampa Bay Tribune | Tuesday, August 25, 2009
PAY LATER
NEW YORK - To gauge the economic strain on consumers, look no further than the rows and rows of bags awaiting layaway payments at Kmart. They are filled with back-to-school basics - not just T-shirts and jeans, but notebooks, markers and pencils.
It is unheard of for layaway rooms to be packed at back-to-school time and for the packages to include basic school supplies.
A record number of shoppers, shut off from credit and short on cash, are relying on Kmart's layaway program to pay for their kids' school needs, said Tom Aiello, a spokesman for Kmart's parent, Sears Holdings Corp. Layaway allows shoppers to pay over time, interest-free, and pick up their merchandise when it's paid.
"It's a sight," said David Travis, manager of a Kmart store in Conover, N.C. "In the past, we would see layaway pick up at Halloween as people got a head start on holiday shopping."
Burlington Coat Factory Warehouse Corp. said its layaway business is stronger than a year ago. And eLayaway.com, which offers online layaway service for about 1,000 merchants, has seen its business double from the same time in 2008. Customers are setting aside $25 calculators and $30 backpacks.
Layaway has its roots in the Great Depression. It became passe in the past two decades with the rise of credit cards.
