Wal-Mart Stores Inc. will end layaway service this year because of falling demand and rising costs, scrapping a tradition started when Sam Walton founded the chain in 1962 to cater to cash-strapped rural shoppers in northwest Arkansas.

Wal-Mart said yesterday that it will stop accepting layaway items Nov. 19 with a pickup deadline of mid-December. In its layaway program, customers make a down payment to hold an item and then generally had up to 60 days to pay it off, with a shorter deadline in the peak Christmas season.

Layaway is used mainly by people at the lowest end of the income scale, who don’t have credit cards and might not qualify for credit, analysts say.

The move comes as Wal-Mart is changing on many fronts, from adding upscale fashions to targeting new urban customers, in a bid to revive growth rates that have fallen behind smaller rivals such as Target Corp.

"Demand for layaway service has declined steadily as consumers turn to current options including online shopping, shopping cards and no-cost credit alternatives that were not available when the company was started," said Pat Curran, executive vice president of Wal-Mart store operations.

Analysts said most retailers have dropped layaway service as it is expensive and cumbersome. Merchandise can be tied up for months and employees have to keep track of a steady trickle of payments.

"This is another recognition that Wal-Mart is no longer a little Ozarks company but instead is the nation’s largest private employer and the world’s largest retailer," said Patricia Edwards, portfolio manager and retail analyst at Wentworth, Hauser & Violich in Seattle, which manages $8.2 billion in assets and holds 51,000 Wal-Mart shares.

Still, Wal-Mart’s unionbacked critics said the move marked another step away from its founder’s vision.

"Sam Walton’s Wal-Mart — the one that ‘bought American,’ treated workers with some dignity and gave low-income customers a chance to buy an expensive item over time — that Wal-Mart is now on permanent layaway," said Chris Kofinis, spokesman for WakeUpWal-Mart.com.

Wal-Mart said it is working on ways to make other payment methods available to shoppers with limited credit, such as Wal-Mart-specific cards that offer zero interest for the first six to 12 months.

I'm sorry but this pisses me off.

well that bites.

whats layaway?

Layaway is where if you don't have the money to buy a $200 T.V. or something you put it on layaway. You make a minimum down payment and make payment of ver anywhere from 60 days to 3 months.

I didn't know stores still had layaway. Sorry I'm a lil slow sometimes.

quote:

Originally posted by tx_pixies:
Layaway is where if you don't have the money to buy a $200 T.V. or something you put it on layaway. You make a minimum down payment and make payment of ver anywhere from 60 days to 3 months.

Yup I hear ya there - it makes a bit easier at times....

it must be the end of the world i cant TAKE IT!!!!!

**** WALLY WORLD!!!!!!!!!!!!!!!

They do NOTHING but run the small business out!!!!!!!!!!!

I hope they GO AWAY!!!!!!!!!!!!!!

lol, why would ya wanna have a layaway on $1.50 product????? lmfao

quote:

Originally posted by ~*~KozyKitten~*~:
**** WALLY WORLD!!!!!!!!!!!!!!!

They do NOTHING but run the small business out!!!!!!!!!!!

I hope they GO AWAY!!!!!!!!!!!!!!

Exactly my opinion of them.

even though i work for them i totally agree with yas dora and Q

Whoa, I didn't know that. Thank you for posting.

That s.ucks. Alot of people around here do layaways for their families Christmas stuff that will put them in a tight spot.