Post by Blaque on Sept 15, 2006 6:11:48 GMT -5
CHICAGO (Reuters) - Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) said on Thursday it was phasing out its layaway program because of declining use and increasing costs, and was expanding other financing options instead.
The world's biggest retailer said customers would have until November 19 to place items in layaway for the Christmas season, and merchandise must be picked up by December 8.
"Demand for layaway service has declined steadily as consumers turn to other options, such as online shopping, gift cards and no-cost credit alternatives," Pat Curran, Wal-Mart's head of store operations, said in a statement.
Kmart, which competes with Wal-Mart, said that it would continue to offer a layaway plan at most of its stores.
Wal-Mart said that customers who apply for a new Discover or Wal-Mart credit card will get $20 cash back if they purchase at least $100 on their card on the same day.
The retailer also has zero-interest offers for six months and 12 months for current Wal-Mart cardholders.
Wal-Mart is in the midst of a heated battle in Washington over its bid to own a bank, which the retailer said it intends to use for processing credit card transactions. Critics fear that Wal-Mart plans to open branches nationwide.
Kmart, which is owned by Sears Holdings Corp. (SHLD.O: Quote, Profile, Research), said it has offered layaway services for nearly 40 years and currently offers them in about 1,300 of its 1,400 stores.
"Layaway service is a way for gift-givers to keep presents away from prying eyes, and provides customers with this convenient option," Don Germano, senior vice president of Kmart retail, said in a statement.
Sears stores have a limited layaway program, offered year-round on jewelry and at certain times of the year on big ticket items, a spokeswoman said.
The world's biggest retailer said customers would have until November 19 to place items in layaway for the Christmas season, and merchandise must be picked up by December 8.
"Demand for layaway service has declined steadily as consumers turn to other options, such as online shopping, gift cards and no-cost credit alternatives," Pat Curran, Wal-Mart's head of store operations, said in a statement.
Kmart, which competes with Wal-Mart, said that it would continue to offer a layaway plan at most of its stores.
Wal-Mart said that customers who apply for a new Discover or Wal-Mart credit card will get $20 cash back if they purchase at least $100 on their card on the same day.
The retailer also has zero-interest offers for six months and 12 months for current Wal-Mart cardholders.
Wal-Mart is in the midst of a heated battle in Washington over its bid to own a bank, which the retailer said it intends to use for processing credit card transactions. Critics fear that Wal-Mart plans to open branches nationwide.
Kmart, which is owned by Sears Holdings Corp. (SHLD.O: Quote, Profile, Research), said it has offered layaway services for nearly 40 years and currently offers them in about 1,300 of its 1,400 stores.
"Layaway service is a way for gift-givers to keep presents away from prying eyes, and provides customers with this convenient option," Don Germano, senior vice president of Kmart retail, said in a statement.
Sears stores have a limited layaway program, offered year-round on jewelry and at certain times of the year on big ticket items, a spokeswoman said.