Why is Wal-Mart ending it's layaway program?

Question

I heard that Wal-Mart has decided to permanently end their layaway program. I thought it was just a rumor until I saw it on the news last night. Does anyone know why they decided to do away with their layaway program indefinitely?

Answer 1

BENTONVILLE, Ark. (Sept. 14, 2006) – Wal-Mart Stores, Inc. said today that, because of declining use and increasing costs, the company will phase out its layaway program as it expands other financing options. Customers will have until November 19 to place items in layaway for this Christmas season and merchandise must be picked up by December 8.

Answer 2

Declining use of the layaway department and it not being cost effective are the main reasons. Most of the year most customers do not take advantage of layaway, with the exception of Christmas and Back to School seasons.

During the Christmas season trailers have to be rented to store layaway merchandise. Extra employees are needed to maintain layaway. And unfortunately a great deal of layaways are never claimed before Christmas causing lose of sales due to items not being on the shelf for purchase. Many of these items will be clearanced before finally making it to the shelves after Christmas. There are no fees, so these customers will have the money they paid into their layaway accounts returned to them in full.

Also, some customers have resorted to using layaway as a suedo bank. They place high end merchandise on layaway, make regular payments, and then cancel their layaway right before the due date or the balance is met. This causes items such as big screen televisions to be out of stock for other customers right after the layaway is made and there being no regular stock room space for it to go to after being cancelled, since another has already been ordered to replace it and is sitting in that space.

The last day to put a layaway on will be November 19th. The last day to have your layaway picked up will be December 8th. All unclaimed layaways will go back to the sales floor December 9th. The Jewelry department is keeping their layaway program for the time being.

Answer 3

Well Walmart is changing for everyone. My best friend has worked at Walmart for about 18 years and they capped her salary along with everyone elses. They decided that because the consumers will pay for things at a higher price that they will not reduce as much as they use to. They also decided to get rid of the lay away program because too many people were putting items on lay away and then deciding that they didn't want the items any more and by that time the items were being clearanced. The other problem was employee theft. The lay aways were not being monitored properly and too many of them grew legs and walked out of the store. Sam Walton would roll over in his grave if he knew of the changes that Walmart is planning. Sam Walton wanted a store that would help the average man. The new owner wants it to be something that will benefit them.

Answer 4

Employees were stealing out of the layaway bags.

Taking things out, or replacing them with things of lesser value.

Too much money being lost.

Answer 5

Why would you ever want to shop at Wal Mart? Their pharmacists are allowed to refuse to fill legal, valid prescriptions for birth control. I'll never give that kind of store my business.

http://www.saveroe.com/campaigns/fillmypillsnow/pharmacyscorecard

Answer 6

Because they are fools.
Since they have now cornered most of the discount shopping market, they feel they no longer have to give good customer service.
Only a nationwide boycott could change their minds, but, nobody has the guts to do without their cheaper gas, and somewhat cheaper products.

Answer 7

So that some people can no longer shop at their store

Answer 8

It's not cost effective.