Wal-Mart to end layaway...

[amani]

I thought my friends were trying to piss me off because they know that I'm the Layaway Queen. But I knew I had to get on gottadeal for the real answer. And what you know........ This is how I put my daughters clothes up for layaway at the beginning of the summer & winter and just pay until the end. But now I'm going to re-route my budget:mad:

I should've seen it coming...some good things don't last always.

[lori12563]

I used to work in Layaway for 7 years and trust me its not going to hurt their business. Maybe you would pick them up but 63 percent of people never picked theirs up and we were stuck with marked down stuff that we had to sell at a loss.

[bayhaysay]

Ok guys, I think I'm gonna go put some stuff on layaway today...just for the fun of it.

[dealluvr]

me too!

[sullyd]

That is too bad. So many people depend on layaway for their Christmas shopping!

[Mom2Ciara&Keagan]

Kmart, here I come!

[Princessarky]

I use layaway every BF this totally screws me! I have been more of a Target shopper lately and this might just be the blow that pushes me all the way to Target. I think they may change their minds next year after they see how much it hurts them this year.

 

 

I agree I told the assistant manager at the local walmart that I would be taking alot of my money to target simply because I used walmart for the layaway if I am going to have to pay for it all at once I would shop else where she agreed that it was stupid on walmarts part and she believes that it will hurt them but then again being the worlds largest retailer I think they can take the loss

[Chauntae]

My Walmart's layaway employees confirmed it for me today, too. Said that they're going to take a hit and that it's going to affect a lot of their customers, which I obviously agree with. KMart still offers layaway, but it's not like Walmarts.

[Gporter34]

Stupid move on WM's part!

[elena_398]

Im surprised they are ending it. Guess no layaway for BF this year. That stinks. I had planned to use it this year

[Guest bigjhowe]

Believe it or not, most companies LOSE money trying to use layaway.

[Princessarky]

Not that it will do any good I am still going to email walmart and let them know how I feel about them getting rid of their layaway plan. I dont shop at kmart simply because they are 50 miles away from me and I dont much care for their store in the first place.

[able]

i really dont get why someone would want to use layaway...dont you need to make all the payments before you get the item?and if so how is it a loss if people dont pick stuff up... dnt the store then keep the product and the $ that has been put towards it? i can see them having to drop the price,..but wouldnt it have been on sale or it would not have been on layaway to begin with? to me this is even more rediculous then rent to own..(where they jack up the price and people pay weekly on a much higher price)i do believe if you cant afford something dont buy it!*i can see if someone has kids thats a whole different story *

[jenilyn]

I signed too, it really helps to have this for the holidays. I can hide stuff from the kids and it helps us get just that little bit more for them, know what I mean? I cant imagine being someone who HAS to rely on this for holidays gifts and things. I just couldnt imagine, and yet some people dont have any other option.

Wow, did WalMart screw up on this one......AND BAD!

[stiltman]

I hate W-M i will do anything to avoid them as much as possible. But now i'm thinking there will be a lot less peps on Black Friday i might get a chance to get some of the good stuff. (If they have any good BF sales)

[cre8kos4u]

I hate W-M i will do anything to avoid them as much as possible. But now i'm thinking there will be a lot less peps on Black Friday i might get a chance to get some of the good stuff. (If they have any good BF sales)

 

Wow, I never thought of it that way. It could be a blessing in disguise. I haven't used layaway the past few years as it got too crazy in our store.

[labgeek]

Believe it or not, most companies LOSE money trying to use layaway.

And why wouldn't they? Here remove items from your inventory and hold it for 1 customer who may or may not come back anytime soon. AND if it drops in price refund the difference. If they decide not to want it, you just turn around and refund it. And have you seen the layaway warehouse space? Bikes hanging from the ceiling and box after box of stuff some of which has been there for some time. Not to mention the boxes themselves - look on the side it's like $1.50 each or something.

 

Layaway wasn't a sales tool. It was a convenience for the customer. Even if it affects sales in some slight way, it won't adversely affect profit which is what the company cares about not sales. You can sell millions of dollars per year, but if you aren't profitable you toast. There's a pretty good book - "The customer is usually wrong" or something like that. Read it if you get the chance. One of the things they point out is if you want to really make it dump the worst 10% of your customers. Those customers that take up a disproportionate amount of time or resources. Devote that time to your best 10% of you customers and your profit will increase.

[labgeek]

I hate W-M i will do anything to avoid them as much as possible. But now i'm thinking there will be a lot less peps on Black Friday i might get a chance to get some of the good stuff. (If they have any good BF sales)

I know the local WM didn't accept layaways on BF anyway...

[Puglife]

MAN! This tees me off!! I ALWAYS use layaway for Christmas stuff for my kids..this is really going to put a hamper on the holidays this year!

[KBsDarling]

i too wondered if this will thin the crowd at WM. I know our usual BF WM had a crowd at LAW but we are trying a new area this year so nothing to compare it too. I wonder if all the people that are banning will continue that ban of BF if WM does the will match any flyer push like they did last year

[sgilliam]

Wal-mart is making a business decision to end layaway because in the end they lose more than they make. They have to hire extra help, pay for 10-20 trailers to store layaways, lose money on merchandise customers NEVER come pick up, lose money on things that go on clearance while its sitting in layaway, and countless other things... Layaway usage has declined over the years and they did a customer poll over the last several years before they made this decision. Why should they lose money so people can use them as a "storage" facility to hide gifts during the holidays. They can use all that manpower to be on the salesfloor to help better assist the customers. They will lose some customers and if those people want to go pay HIGHER prices at some other retailer then let them

[Aaron]

** IMPORTANT RESPONSE FROM WAL-MART STORES REGARDING LAYAWAY**

 

It's really important to everyone here at GottaDeal that our friends can get the information they need and deserve. I wrote out to Wal-Mart stores a few hours ago trying to get a response from the company confirming this. The e-mail just asked a simple question, requesting a simple answer.

 

From: Aaron M. Myers

To: Walmart.com Help <[email protected]>

Date: Sep 24, 2006 8:33 PM

Subject: A Wal-Mart Store

I was wondering if someone from the Layaway Department could help me and answering some un-answered questions. The Layaway Department of Wal-Mart stores helps many of our members get through the holiday season.

The Customer Support department was prompt in getting back with me regarding this issue, and they made this statement regarding the Layaway Department!

 

From: Walmart.com Help <[email protected]>

To: Aaron M. Myers

Date: Sep 24, 2006 8:33 PM

Subject: Re: A Wal-Mart Store

 

Dear Aaron M. Myers,

 

Today's consumers have several payment plan options that were not available when layaway programs were first created. Because of declining use and increasing costs, Wal-Mart will phase out layaway service this year as the company joins most other retailers who phased out layaway years ago. To assist our customers, we are offering one last opportunity to use layaway service this Christmas season. Customers will have until November 19 to place items in layaway.

 

Thank you for visiting walmart.com. We appreciate the opportunity to serve you and look forward to your next visit.

 

If we may be of further assistance, please email us at [email protected], or call us at 1-800-966-6546. We're here to serve you from 7:00 AM EST to 2:00 AM EST, 7 days a week!

 

Sincerely,

 

Lodel

Customer Service at walmart.com

The Layaway Department at Wal-Mart will be phased out after the Christmas season. Everyone will be able to put items in Layaway at your local Wal-Mart store until November 19th, 2006. After November 19th, 2006 you will not be able to place any new items into layaway. As you might of noticed, this is just a few days before Black Friday 2006.

 

So, please - if you need Layaway to make sure your family will enjoy Christmas as they should, please visit Wal-Mart today and put the items you need on layaway!

[love2beurwifey]

Thats crazy, our layaway was supposed to stop the middle of this month but didnt but I guess everyones will stop permanently in Mid November.

[kristablu28]

Wal-mart is making a business decision to end layaway because in the end they lose more than they make. They have to hire extra help, pay for 10-20 trailers to store layaways, lose money on merchandise customers NEVER come pick up, lose money on things that go on clearance while its sitting in layaway, and countless other things... Layaway usage has declined over the years and they did a customer poll over the last several years before they made this decision. Why should they lose money so people can use them as a "storage" facility to hide gifts during the holidays. They can use all that manpower to be on the salesfloor to help better assist the customers. They will lose some customers and if those people want to go pay HIGHER prices at some other retailer then let them

Well, in a different light, if they get better profits by phasing out layaway, I truly hope they put some of those profits towards raises and better health insurance for their associates. Walmart is well known for it's iron pockets. The Walmart employees here in South Jersey are miserable to deal with and are overworked. Just a heads up...only 90 days left for Christmas Shopping!

[gatorgrad]

I saw someone mention that they're going to goto Target. I don't think they do layaway either.

[Aaron]

I saw someone mention that they're going to goto Target. I don't think they do layaway either.

Nope.

[khall1971]

i really dont get why someone would want to use layaway...dont you need to make all the payments before you get the item?

That's the beauty of it. You get zero percent financing, and don't have to make a huge down payment or big subsequent payments. Beats the heck out of using credit cards if you don't need the item right away--I think most people use it for Christmas. That way they can prepay and not get stuck with huge bills come January.

 

It's also a great budgeting-lesson tool for teens. They can buy their own clothes and stuff with their allowance and NOT your credit card. I had to do this in high school, and was so thankful for it.

 

and if so how is it a loss if people dont pick stuff up... dnt the store then keep the product and the $ that has been put towards it? i can see them having to drop the price,

Here you're correct. At least they're getting something for their trouble, if not the full retail value. I thought layaway programs also had penalties, so that if you change your mind later you forfeit the down payment or some such. I could be wrong.

 

...but wouldnt it have been on sale or it would not have been on layaway to begin with?

 

Actually, no. If there's a time-sensitive item (such as the new Tickle Me Elmo that's coming out), that you know you "have" to have, and you wait until you have saved up for it, they'll probably all be gone. Layaway is not related to an item's price.

 

...to me this is even more rediculous then rent to own..(where they jack up the price and people pay weekly on a much higher price)i do believe if you cant afford something dont buy it!*i can see if someone has kids thats a whole different story *

I'm with ya on the rent-to-own. In that case you're paying extortionist interest rates! But then, if you only need an item for a month, it may be a better value in the end. I rented a couch for 2 months while waiting for the one I ordered to arrive. Certainly cheaper than spending several hundred dollars to buy a couch, even with the interest!:)

[KayTee]

Yes, sad but true. My hometown will stop taking layaways Nov. 19th!

[Aaron]

** UPDATE REGARDING LAYAWAY DEPARTMENT **

 

I receieved another e-mail from a real "person and not just a automated reply-type message, below are a few points that need to be highlighted:

 

Customers will have until November 19th to place items in layaway and merchandise must be picked up by December 8th.

 

Wal-Mart wants to offer it's customers the same great service that it did with it's Layaway Department..

 

Wal-Mart is also working to offer customers new payment options. We already have zero interest offers for 6 and 12 months for current Wal-Mart cardholders. And for the first time, customers who apply for a new Discover or Wal-Mart Credit Card will receive $20 cash back when they apply at the register and purchase at least $100 on their card the same day.

[MICKEY3601]

I liked using it as a way of hiding christmas gifts from my kids. Also I didn't have to drive home to drop off what I bought & then go shopping again. As we all know alot of Black Friday deals are only for a few hours in the morning.