Most consumers are holding onto their wallets pretty tightly these days and higher-end purchases have become a rarity (Tiffany & Co. being the exception of course.) At Pierce Mattie PR we are watching from our retail clients the re-emergence of layaway and how it's helping drive the purchase of bigger ticket items this holiday season. For a while layaway seemed to go by way of the dinosaur, but due to the recession, consumer demand has resuscitated it. Sears has brought it back for their appliances, Kmart has brought it back and in this digital age you can now find layaway sites online. Both Lay-Away.com and eLayaway.com offer affordable solutions for everything from camcorders to appliances to computers—and from retailers such as the Apple Store and eBags. Will layaway be the saving grace for our economy?
In the past, layaway was often associated with just budget-friendly department stores and mass retailers (like Walmart, who did away with their layaway program), but now more luxury retailers are beginning to offer it. Recently Sarah Leonard Fine Jewelers in LA was noted as selling a $36,000 diamond ring via layaway. For most, this is a better option than putting items on credit for various reasons such as their credit being tapped out or avoiding that high monthly interest rate.
If you are a retailer, marketing layaway as an affordable option to purchase higher-end products may just help boost your sales fourth quarter. It may also help get first-time consumers through your door.
What are your thoughts on high-end stores offering layaway? Will it tarnish their brand image or will it eventually boost sales?
Photo Credit: Cole Haan Handbag from eLayaway.com
Posted by Shannon Nelson on November 10, 2010 2:22 PM
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