KMPH Fox 26 Central San Joaquin Valley News Source in Fresno, California Entertainment, News, Sports and Weather | Layaway Making A Comeback With Valley Shoppers; Retailers

Layaway Making A Comeback With Valley Shoppers; Retailers

By Clint Olivier

CLOVIS - Melinda Cervantes is stopping by Kmart in Clovis to make a payment.

"I actually have a layaway for winter clothes for my children," she said.

Cervantes has about two months to finish paying on her stuff.

Layaway is becoming big business for retailers who offer it.

During last year's holiday season, this Kmart made close to a million dollars on layaway merchandise alone.

This year they hope to make more than that.

Also in 2009, a first for Kmart, on-line layaway:

Customers can shop and even make payments online.

"We do surveys with customers and a lot of customers appreciate that we do layaway," Jon Alibrando said.

"Right now I'm standing in the storeroom above the Kmart store and these are dozens of bicycles all of them on layaway, waiting to be paid off and picked up. In fact by Christmas this entire building, all the way to the wall will be full of stuff, all of it on layaway," Clint Olivier reported.

Besides Kmart, it's also available at Sears, Marshalls, TJ Maxx and Burlington. Walmart offers it on jewelry only.

"A lot of people right now are worried about the continuing debt that Christmas has brought on in years past," Dr. William E. Rice said.

Marketing Professor William E. Rice says having a layaway program helps both retailers and consumers, including a psychological benefit for shoppers who use it.

"For a person to say, I've already purchased your gift. I thought so much of you, I'm so much with you, that I bought your gift already and I'm not going to tell you what it is," Dr. Rice said.

And Melinda Cervantes hopes layaway is here to stay.

"Love it at Christmas time having a layaway and only paying it every two weeks. I get all the kids toys here and it's really helpful," she said.

Dr. Rice also says layaway gives retailers a chance to get an early season snapshot of what the hot gift will be in a holiday shopping season.