Why is Wal-Mart closing its lay-a-way department?

Answer 1

Not nearly as many people use it now.

Also, it costs a lot to operate. People will put stuff on layaway and put the 10% down. Then when they decide they need some cash they just cancel the layaway and then all the stuff has to be re-stocked in the stores.

I worked in a layaway years ago and more people cancelled their layaways than the ones that actually paid them off.

Answer 2

Here is what I found:

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.

“Demand for layaway service has declined steadily as consumers turn to other options, such as online shopping, gift cards and no-cost credit alternatives,” said Pat Curran, executive vice president, store operations, Wal-Mart Stores Division. “To assist our customers, we are offering one last opportunity to use layaway service this Christmas season.”

At the same time, Wal-Mart is working to offer customers new payment options. The company already has zero interest offers for 6 and 12 months for current Wal-Mart cardholders. For the first time, customers who apply for a new Discover or Wal-Mart Credit Card will receive $20 cash back when they apply at the register and purchase at least $100 on their card the same day.

Answer 3

They are closing it because it does not generate profits.
The problem with layaway is that people use it as a bank account. They place lots of items in the layaway dept because they are on sale and they think that they want them. When it comes time to get the items out the reshop the items selecting only what they really want or can afford leaving Walmart to return to stock the other items. These are usually seasonal or no longer carried items and they wind up on the clearance racks. Additionally the layaway dept seems to fill up with the advertised items and there are none left for pay today customers.
Other costs incurred are staffing, paperwork and space that is used for this lost profit department.

Answer 4

The cheap bastardz don't want to pay employees to stand around, nor do they want to help the "lower income" customers that make up the majority of it's layaway users. They discovered layaway users generally either have poor credit and can not use credit cards or they have low incomes and can not pay for their purchases all at once. Wal-Mart says they loose money on the program.

Answer 5

I think because wal mart is a declining business that is going to go out of business because of competion from stores such as target ,ross, k-mart and etc.... I knew this was going to happen because has anybody besides me seen a decline in Walmart's merchandise? I mean i bought some clothes there and they fell apart after I washed them I mean come on.

Answer 6

Lay away is a large expense, it ties up inventory and store space. Money better spent on stock for the shelves. Layaway is a remnant from pre-credit card days, it secured a purchase for a customer, but the cost associated with layaway does not pay for itself.

Answer 7

I know....what are we going to do??? I always use it at Christmas time..i can't afford to pay all that money at once...I honestly don't know what I am going to do...can we get in touch with Wal-Mart and e- mail our complaints...

Answer 8

i did no longer even understand that they have been removing the lay away section at Wal-Mart. I definately think of will harm them plenty. a lot of human beings would relly want what they are going ot purchase yet do no longer locate the funds for to pay for it on the 2d. that's definately unlikely to help THEM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answer 9

plain and simple:

because Wal-Mart SUCKS

Answer 10

because dumb people like u and me and everyone else forget to go get off lay-a -way ,so they are stoping it.