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Oct 27, 2008 8:21 pm US/Eastern
Cutting Corners: Layaway Makes A Comeback
MIAMI (CBS4) ―
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With the economy in flux, the old tradition of layaway is back in style for families on a tight budget.
CBS
The tight credit market is forcing a number of retailers to bring back a shopping staple from decades ago. Layaway is back in action! You may have already seen some stores advertising it for the holiday season; the system is a great way to cut corners when holiday shopping.
Calvis Gibbson loves to shop. But when money is tight, he does what his mother did when he was a kid. He uses layaway. "Put something on hold, pay for it later!"
The system is making a comeback. It started during the Depression and all but faded out during the 1980s. But nowadays, what's old is new again.
"I saw a K-Mart commercial for it," Emily Meuse said. "I was like, okay… because I remember it when I was a kid."
Big name retailers like K-Mart and Burlington Coat Factory are hoping to cash in by targeting shoppers looking for a break.
"They will put 25 percent as the down payment, and we will hold it in the back for a period of one month," described Burlington Coat Factory manager Anna Spencer. She said Burlington's has offered the service since it was founded 32 years ago. Burton also said at least 20 percent of their customers use lawaway during the year. During the holidays, that number goes up by another 15 percent.
For smaller, privately-owned retailers like Bellini in Coral Gables, lawaway drives a good portion of their business. "They can have more time to work with," Nathalie Marcos said of the system.
It's also a good option if you want to put down the credit cards. While there is a bit of a wait, you don't incur finance charges. That's not a bad trade-off for Calvis Gibbson, who says he's always looking to save money.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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