Walmart re-introduces Holiday Layaway program, made popular during the Great Depression

There is a specific, and large population of the United States who buys based on two factors: need and price.

This is Walmart's sweetspot.

Understanding the needs of their target audience, the company who touts "everyday low prices" is bringing back a holiday layaway option from October 17 through December 16 to help its customers buy items for the Christmas season.

Layaway--made popular during the 1930's Great Depression, is becoming a helpful tool to those squeezed by the current Great Recession. The program allows shoppers to pay over time, interest-free, and pick up their merchandise when it's paid in full.

The company steered away from pay-as-you-go plans back in 2006, but has decided to bring them back to help its mostly lower-income customers who've been most affected by the recession's high unemployment and rising price of consumer goods.

"We're always looking for ways to ease budget strain for our customers, and we know this holiday season brings with it additional financial pressure," said Duncan MacNaughton, chief merchandising officer at Wal-Mart's U.S. division. "This was a key component that our customers asked us for."

It is a return to the basics for Walmart, who has suffered nine straight quarters of declines at its U.S. stores. In addition to the layaway program, Walmart stores will launch price cuts on dozens of holiday toys down to $15. The company also said that it will start selling some holiday merchandise two weeks earlier than a year ago in an effort to jumpstart the buying season.

Source:  DailyFinance:

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