Wal-Mart phases out lay-away

By Sam Sandoval

POLSON - November 19th was the last day anyone in the country could place items on lay-away at Wal-Mart. Citing a decrease in use among other things, what was once a useful feature of the mega-chain superstore has gone to the wayside in favor of other means. Despite it's popularity, outcry and criticisms have been few.

Lay-away was a part of Wal-Mart's legacy for the last 44-years. Lay-away allowed customers to purchase items over a certain amount of time, usually 60 days. Items were left in the store until paid in full.

Consumers first noticed the announcements in the first part of September. "We actually saw a 45 percent decrease in lay-aways last year," says Dave Tolley, Manager for the Polson Wal-Mart. "When it came down to it, the labor and cost of the lay-away program just wasn't feasible anymore."

Some have criticized the new Wal-Mart policy as hindering sales to low-income families. For tribal members, lay-away became part of the back-to-school and Christmas seasons since they coincided with per capita disbursements. Families were able to put a large number of items or expensive items on layaway and then pick them up when the money was available.

Regardless, Tolley met little aggravation following the final day of lay-away. "A few people were upset," he said. "However, after I explained to them the different programs we were offering, they seemed to be okay with it."

Tolley described many alternatives consumers could use instead of lay-away. Credit cards and gift cards were being used and coupons and sales specials allowed consumers to buy instantly. Wal-Mart pushed applications for the in-house and Discover credit cards following Thanksgiving. "Even someone with less-than-perfect credit may qualify for the in-house Wal-Mart card and still get a low credit limit."

Another way in which Wal-Mart hopes to lure consumers is through the internet. Internet sales have grown and Wal-Mart is beta-testing a new program called "Site-to-Store," in which customers can order items unavailable at their local store through the website and have it shipped to their store free of charge. Currently, Wal-Mart charges for shipping and large items can be expensive to ship. 'Site-to-Store' will, they hope, alleviate the high cost of shipping which deters customers from buying more expensive items online. Customers will even have the option of ordering in the store through dedicated computer kiosks, which may include a credit card machine. 'Site-to-Store' is being tested in parts of Texas, Missouri and California.

However, some unions are questioning the motives behind the phase-out while an estimated 10,000 lay-away workers may be affected nation wide. Some critics also point out that the Wal-Mart credit cards charge service fees and the ever-present credit card bane, interest, where as lay-away only cost as much as the merchandise.

Most department store chains do not offer lay-away. K-Mart, however, has stated that they have no intentions of ending their lay-away program.

As of this writing, there were no solid numbers of how many local consumers have been affected by this phase-out.

The Missoula SuperCenter referred Char-Koosta News to the corporate site.