Walmart does away with layaway; new program will charge customers interest

[left-of-center2012]

Walmart does away with layaway, which didn't carry any fees, and announces new buy now, pay later program that will charge customers interest

Walmart has decided to scrap its layaway program completely before the 2021 holiday season, replacing it with a buy now, pay later financing option. The retailer is now using the company Affirm to replace layaway. Instead of having stores hold items from late August through mid-December while customers make payments until paid in full, shoppers can now take the item home immediately and pay it off with Affirm. Although Affirm does not charge any hidden or late fees for using its services, customers can have
an APR rate on purchases of 10-30% depending on their credit.

Not all Walmart customers will be eligible to use Affirm, depending on their prequalification status. The service can be used on purchases ranging from $144 to $2,000 and excludes items like alcohol, groceries and food, personal care products, and pet supplies.

Affirm's services operate alternatively to a credit card. Customers will purchase the item immediately, and pay for the items over a three to 24 month period. Customers can select their own payment plan and Affirm will match them with a lender who will provide them with a loan for the financed item.

Some Walmart customers expressed concern on social media, worried about how families would be able to purchase gifts for the holiday season if they don't qualify for Affirm. "Walmart took away layaway and replaced it with Affirm, which checks credit… right before Christmas," one Twitter user wrote. "So many low income families are not gonna be able to give their children gifts."

https://www.businessinsider.com/walmart-layaway-canceled-affirm-finance-buy-now-pay-later-2021-9

[Orrex]

1. I'm just here to watch the predicatable scolding of Walmart customers

With an added helping of "you should budget better."

[Rorey]

5. Definitely not from me

There was a time when I was the sole breadwinner in my family of six because my husband was very ill. Budgeting isn't easy when you're hanging on by a thread. I don't know how we did it.

[Orrex]

92. You have my full sympathy

[Rorey]

99. Thank you. That was a long time ago.

Financially things became easier after my husband died. We were very poor, but I have many very wonderful memories.

As poor as we were, I know that many have it much worse than we had it. I'm truly not complaining, but just saying that I can somewhat relate to their plight. I never take my life now for granted.

[jimfields33]

6. I didn't realize lay away was still a thing

I remember in the 80’s it was popular. Probably not worth it anymore.

[Luciferous]

41. I didn't either. I remember my mom using it

sometimes, that was back in the 80's and early 90's.

[Politicub]

70. It was a thing until it wasn't. Then it came back in limited form after 2008.

My guess is that it went away after credit cards became widely available. Credit enabled instant gratification.

I worked in the Walmart layaway department in the early 90s, and layaway boxes took up more than a third of the stockroom. The movable shelves were on tracks and they reached nearly to the ceiling. It was physically demanding for workers to climb ladders and pull down products and boxes. It’s hard to hire people at Walmart wages now, and they probably don’t want to commit to staffing the service.

When I worked there, Walmart didn’t have any kind of fees, and tbh, the layaway department was an unwieldy thing to manage. People could have as many layaways as they wanted, could add or take from their box at any time, or cancel a layaway and get their money back. Shoppers would often would put several items on layaway and then cancel it the following week. All that stuff would need to be put back on shelves.

I’m not saying it was a bad or unnecessary thing; most stores had some kind of layaway service in the last century. I was glad to get moved out of the department, though.

[stopdiggin]

87. thanks for an eye on the ground picture -(nt)-

[PoindexterOglethorpe]

71. Same here. I thought it had gone away by the 1980s.

I used it in the 1960s and into the '70s, and found it quite wonderful for me at the time. Very little income, and in a way the beauty of it was you didn't take home your purchase until you paid it off.

[BannonsLiver]

79. Yeah everyone here loves corporate behemoths like WalMart

[stopdiggin]

85. anybody wanna take bets on the 'average' interest rate

this company charges a Walmart customer? (excluding, of course, those that don't qualify for credit at all?)

I'm not necessarily faulting Walmart for this move - but the former (layaway) system obviously offered a great deal more benefit to the poor.

[wellst0nev0ter]

106. I used to work at Wal-mart

Which is why I naturally came to hate Wal-mart customers.

[Rorey]

2. Back in the day

Back in the day, I depended on layaway around the holidays and also at back-to-school time. There was no way back then that I would have qualified for a credit card, and layaway made it easier to budget for holidays. Another bonus was that I didn't have gifts hidden at home for snoopy children to find.

This will suck for customers who depended on it, and I think it'll ultimately hurt Walmart. Anyone who would qualify for their Affirm thing would likely qualify for another credit card without Affirm.

[hlthe2b]

8. Yup, exactly. Any time a company (seemingly always starting with an "A" like Allegiance, Asurion,

Affirm) is pushed by big corporate America as basically a financing source for warranties, direct purchases, and the like, it screams RIP-OFF to me.

Will those who needed layaway and who have made Walmart what it is, fight back? Or is Walmart too damned good at exploiting those who can least afford to be targeted?

[2naSalit]

3. DIdn't they make noises about...

Starting a bank and some other credit system a few years back?

They never tire of finding ways to part you from your money in exchange for shit made by koch industries and other stuff from jina.

[fescuerescue]

117. Still are.

https://www.marketplace.org/2021/01/12/walmart-wants-to-be-your-bank/

[2naSalit]

119. Thanks...

I couldn't remember where I heard about it last.

[NurseJackie]

4. I don't see anything wrong with this.

Affirm's services operate alternatively to a credit card. Customers will purchase the item immediately, and pay for the items over a three to 24 month period. Customers can select their own payment plan and Affirm will match them with a lender who will provide them with a loan for the financed item.

I don't see anything wrong with this. As long as everything is transparent and the customer fully understands what the interest will be (along with what the possible penalties will be).

I'm sure it will be helpful to many people.

[Rorey]

7. I usually agree with you, NurseJackie

Not this time. I don't see how it'll be helpful to any of the folks who used layaway. They're typically people who don't qualify for credit, so this Affirm thing is useless to them.

[NurseJackie]

18. So retailers should be REQUIRED to provide FREE layaway services?

I'm no fan of Walmart... but they should be able to make their own business decisions. If they don't want to provide employee-hours and storage space to maintain a free layaway program, then this certainly seems like a reasonable alternative compared to offering NOTHING at all. I'm perfectly fine with it.

I don't see how it'll be helpful to any of the folks who used layaway.

They won't have to wait to bring home the item they want to buy. They'll know in advance what their monthly payment will be. No hidden fees, and according to the Affirm website, there are no penalties either.

They're typically people who don't qualify for credit, so this Affirm thing is useless to them.

I found this link:
https://www.affirm.com/how-it-works

[Rorey]

25. No, they shouldn't be required to provide it

Yes, I understand it's a business decision. They can try to hide the fact that they're doing it for Walmart's bottom line by putting out all kinds of flowery words pretending it's for the layaway customers. Poor people will understand what they're doing right away.

Affirm can say "no hidden fees" as loudly as they want. The fact is, anyone who qualifies is going to be paying more for the products they buy through this system. They're still paying interest. I'll also note that the examples they give on their site about the 15% interest is giving people a false sense of what the costs will likely be. I now have an exceptional credit rating, and I still have some credit cards that charge over 15%. It doesn't affect me because I don't carry a balance, but this whole Affirm thing is a "gotcha" thing for the poor people who might actually qualify.

[bigtree]

27. what part of not being able to afford the interest don't you understand?

...no one is saying Walmart shouldn't be able to make their own business decisions.

Yay for Walmart making their own business decisions, but this is a rotten one, sprung on customers right before the holidays. I hope they lose these customers they so blithely decided to disadvantage.

Btw, your post reads like a commercial for Walmart and Affirm.

[NurseJackie]

34. Lulz. Oh, please... this isn't about me.

Yay for Walmart making their own business decisions, but this is a rotten one, sprung on customers right before the holidays. I hope they lose these customers they so blithely decided to disadvantage.

Not really. If someone wants to do an old-fashioned "layaway" for a Christmas gift NOW... they have exactly three months to finish paying for it (assuming they want to bring it home by Christmas day.) With the Affirm plan, they can take it home today and pay for 3 months, or 6 months, or longer! Sounds like a WIN to me.

what part of not being able to afford the interest don't you understand?

Those same customers make those types of decisions every day. Nobody is forcing anyone to pay interest that they can't afford.

Btw, your post reads like a commercial for Walmart and Affirm.

Lulz. Oh, please... this isn't about me.

[bigtree]

43. yeah, poor people are hilarious

...you're right, it isn't about you. (insert fake laugh here)

[NurseJackie]

46. Nobody said that.

yeah, poor people are hilarious

GMAFB. I didn't say that. Nobody said that. (Except you, just then.)

you're right, it isn't about you

Then why try to make it about me, eh? Again, lulz.

[Demsrule86]

62. Layaway was free...this purchase will carry interest from the day of purchase and my daughter's

affirm account had very high interest...the highest I have ever seen...30%! It is close to loan shark territory.

[NurseJackie]

67. The interest will vary AND it will be calculated-in up-front from the beginning.

The customer will know exactly what the interest is and can make their decisions accordingly. It's not the same as credit card interest long with an enticing Revolving Credit that does not have a fixed number of payments, in contrast to installment credit which this appears to be. Carrying a revolving credit balance (making only the minimum required payment) can also be an expensive proposition that would end up costing much more than 30%. Making the 'minimum amount due' payment on your credit card will reduce the outstanding balance of the current month but repeatedly making only minimum amount due payment will not lower your debt (outstanding amount). That's a trap that many fall for (including myself at one time.)

[Demsrule86]

95. Nope...30% is what this group charges.

And layaway is completely free and different....this is a terrible idea from a greedy company and I feel they should be ashamed of themselves.

[NurseJackie]

98. My information is different than yours.

[CTyankee]

9. As I get older, along with all the stuff you can do online, I find it helps me shop better.

In the past I was an "impulse buyer" in stores. I kinda liked the "feeling" that I got with doing it. I don't get that material feel when I shop online. So I don't buy as much. If anything, I am wary of buying something I can't actually feel in my hands.

[Rorey]

17. I can shop better these days because I'm no longer poor

I'm far from rich, but I'm not living in poverty anymore either. I often think about how I can get much better deals than I could when I was poor. I can buy in quantity, or when something is on sale, rather than just getting items when they were absolutely essential.

I also didn't have time or fuel in my car to shop around for the best buys back in the day. These days I can comparison shop before leaving my house.

I think some folks who have never really struggled don't realize what life is like for the very poor. It's very difficult to pull oneself out of that situation.

[CTyankee]

28. I recognize it and I try to help. I know how privileged I am now. I know I inherited wealth, I

didn't earn it (I had the privilege of working for nonprofit causes I believed in). I am not wealthy but I have what I need. Poor people don't have the head start I had growing up white and middle class. It's a simple fact. Most of the people I know don't have material needs they have to have to live. I have help with cleaning the house and doing laundry. My helper struggles economically. I am glad that I pay her what I do. At Christmas time I give her extra cash so she can do what she needs to do.

[Arkansas Granny]

37. I was trying to explain to my boss how expensive it is to be poor.

The subject came up when one of our employees recently bought a used car at one of those "buy here, pay here" car lots. There was no credit check, but the interest rates are crazy high and if you miss a payment you risk having your vehicle repossessed.

If you dont have a bank account, you wind up using a check cashing service to cash your paycheck for a fee.

We really do live in a society where the rich get richer and the poor get poorer.

[Rorey]

40. It's crazy, really

People who haven't lived that life usually don't understand it.

Many years ago we bought a used '69 Chevy Nova from a family member for $200. We made payments of $50 per month, and even that was a struggle at the time. Years later when life changed I gave that car to my daughter. It no longer ran, but her significant other knew how to work on cars and they had visions of restoring it. They eventually broke up, and my daughter still has that car. She used to always tell me that someday she was still going to restore it. I encouraged her to sell it because of the cost of such a project, but she didn't. Then one of my sons said he wanted it. I finally told them both that for me that car evoked a memory of a very difficult time in our lives. I hate seeing it.

I've got her convinced, finally, to sell it. She'll have no problem getting it sold because classic car enthusiasts ask about it all the time. I'm going to be SO relieved to have it gone.

[hunter]

113. U.S. automobile culture sucks.

Especially when you need a car to work and you are forced to accept abusive working conditions to pay for the car.

That problem could be solved by building safe, comfortable, affordable housing in pedestrian friendly cities with good public transportation.

My nephew lives in San Francisco and walks to work. He rents a car whenever he leaves the city. No, his housing would not be considered "affordable" to most working people. He has a high paying job and could afford a house in the suburbs. He tried that but hated commuting.

My wife and I met as commuters in Los Angeles. We've mostly been able to avoid that lifestyle. I've wasted too many hours of my life driving in stop-and-go traffic.

[hlthe2b]

13. As an ADDITIONAL option, no. But the interest/service charges in lieu of free layaway will crush

some who most need that assistance-- especially those who have suffered during the pandemic, lost jobs, or just got behind in their bills and are already overwhelmed with interest charges, yet still trying to buy at least minimal Christmas gifts for the kids or back-to-school or winter clothing

I certainly understand WHY Walmart would WANT to do this--it is all profit for them with NO risk of leaving merchandise languishing past its optimal "sell-by" season nor paying for storage. After pushing out the other retailers for their now captive customers, they no longer feel the need to accommodate in any way whatsoever.

[Rorey]

19. Excellent points NT

[NurseJackie]

23. Again... I'm no fan of Walmart, but I think it's unreasonable for anyone to suggest that retailers...

Again... I'm no fan of Walmart, but I think it's unreasonable for anyone to suggest that retailers (of any size) are obligated or required to provide free layaway services. This is a reasonable alternative. The customer gets to take home the item they want and they know in advance what the monthly payment will be. They can choose how long they want to make payments. And according to the Affirm website, there are no penalties or other fees. https://www.affirm.com/how-it-works

[hlthe2b]

32. And again, I'm not suggesting you are. But, walmart has done very little except to create monopoly

as they drove out the alternative retailers, especially in small towns across the country. This is yet another slap in the face to the taxpayers who subsidized their business with tax breaks and their underpaid, uninsured employees with food stamps and Medicaid. So, now that they have left many of their customers with no alternatives, they penalize them further? No-interest layaway is NO GIVEAWAY. They don't pay to pick it up, Walmart retained all the money/payments already made, as well as the merchandise.

They exploited the very customer base to gain the loyalty that allowed Walmart to drive away any competition, but, now they have a monopoly, they don't feel inclined to even help their customer base with a layaway option? Bullshit.

This is what monopolies do and exploitation is a reality--but, it should not be defended, IMO.

[NurseJackie]

45. Of course it is.

So, now that they have left many of their customers with no alternatives, they penalize them further?

Nobody is being penalized. They are being provided with an alternative that they can choose to use, or that they can reject.

I believe that other retailers are also partnering with Affirm which gives customers more flexibility.

No-interest layaway is NO GIVEAWAY.

Of course it is.

They don't pay to pick it up, Walmart retained all the money/payments already made, as well as the merchandise.

Not necessarily. It depends on the state laws, I think.

They exploited the very customer base to gain the loyalty that allowed Walmart to drive away any competition, but, now they have a monopoly, they don't feel inclined to even help their customer base with a layaway option? Bullshit.

So, it would appear that you do feel that Walmart is somehow obligated to provide this service, and that their customers are entitled to it. Make up your mind.

[hlthe2b]

47. They ARE being penalized by taking away any no-interest option while leaving them NO retail

alternative. What part of that does not click? Have you never traveled to rural America in the past two decades? Most small towns in the most rural areas of the Midwest don't even have a major grocery store. The nearest Walmart and a gas/convenience store are often their only option.

So, do I feel that they are obligated to provide service to the tax base who enabled them to become the monopoly they are? To the taxpayers who paid to feed and insure the employees that Walmart refused to insure nor pay a living wage AND WHILE WALMART PAYS NO TAXES? To the customers (who DO pay subsidizing taxes) for whom they are now quite literally the only local option to purchase even groceries, much less clothing and household necessities? You are DAMNED right they are!

Uggh. Sorry, Love ya, NurseJackie, but can't support this defense of Walmart--at all. In fact, I find it beyond disappointing and surprisingly lacking in understanding for the most vulnerable among us and the impacts corporate greed has had and continue to have on them. I cannot and will not defend those who engage in such blatant exploitation.

And, btw, even in those states where retailers were forced to refund layaway fees, they retained the merchandise. Lost opportunity costs, maybe. But hardly a big dent in their profits. Meanwhile, it is a tax-deductible business "loss" for Walmart (to the extent they pay taxes at all, which is no or minimal)

[NurseJackie]

52. I'm not "defending Walmart". I'm saying that I don't have a problem with it...

... and I pointed out the benefits. I pointed out that Walmart has no obligation to continue to provide a free service to their customers. I pointed out that nobody has the authority to compel Walmart to provide a free service to their customers. It has nothing to do with whether or not I feel "compassion" for the poor or "most vulnerable among us", nor should it be used as a yardstick for the same. Nobody is being exploited. They can chose to, or choose not-to, use the service. They aren't being deceived. They aren't being coerced.

What part of that does not click?

I luv ya, too... but I have not gone out of my way to insult your intelligence or insinuate that you are heartless or lacking compassion.

[fescuerescue]

118. Walmart isn't a monopoly. It's not even #1 in retail

Amazon has passed Walmart.

[hlthe2b]

121. IT IS a physical store monopoly for rural areas across the country. Where have YOU been?

You could not be MORE wrong on this. But, even if you are not informed on this issue, I do have to wonder why you have become such a Walmart defender...?

Amazon does not, nor do they intend to build a physical presence outside of major cities or suburban corridors. BTW, those in the most rural enclaves of the US who, you might think has easy peasy access through Amazon, in reality, have increasing difficulties with the dismantling of the USPS by Trump cronies and the OCT 1 intentional delay in deliveries nationwide, given they have for more than a decade provided most of the end delivery for rural routes on behalf of Amazon. Amazon seeing that is trying to increase their own delivery capacity, but they likewise know how unprofitable it is to do all that USPS routinely does. For the most rural residents, deliveries will be even more delayed than they are now. Even up to weeks.

The lack of appreciation for this is an additional reason so many rural areas have become embittered by and cynical of government and any professed desire to "level the playing ground." The opportunity for small businesses and local enterprises has been demolished by Walmart, leaving them the ONLY GAME IN TOWN. THAT is the very definition of a monopoly!

[fescuerescue]

122. Monopoly has a specific meaning

And that way you use it isn't it.

I do have to wonder why do you defend using the English language in such a manner??

I've been hearing this rant for 2 decades now about how Walmart closes all the other stores.

But, I've yet to see a town where there is only a Walmart.


I don't even like Walmart btw. I shop mostly at other places. Places that wouldn't exist if Walmart was a monopoly.

[hlthe2b]

123. You could not be more wrong: "Walmart's Monopolization of Local Grocery Markets"

https://ilsr.org/walmarts-monopolization-of-local-grocery-markets/

In 43 metropolitan areas and 160 smaller markets, Walmart captures 50 percent or more of grocery sales, our analysis of 2018 spending data found. In 38 of these regions, Walmart’s share of the grocery market is 70 percent or more.
Our findings provide a stark illustration of the failings of contemporary antitrust policy. They also show that more will be required to fix our broken markets than reforms to merger policy.

Full report: https://ilsr.org/wp-content/uploads/2019/06/Walmart_Grocery_Monopoly_Report-_final_for_site.pdf


Fighting the Big Grocery Monopoly
Why independent grocery stores look to antitrust law to battle big retailers like Walmart and Amazon.

https://washingtonmonthly.com/2021/05/13/fighting-the-big-grocery-monopoly/


Scathing report says Walmart’s grocery store dominance must be stopped
https://www.cnn.com/2019/06/27/business/walmart-groceries-monopoly-amazon-antitrust/index.html
New York CNN Business —

Walmart has monopolized the grocery business across the United States and should be forced to sell off some of its stores, an advocacy group charged in a scathing report released Thursday.

Walmart is the nation’s largest grocer. It controls around a fifth of the grocery industry nationwide. The company’s strength in some corners of America is overwhelming and has stifled competition, according to an analysis by the Institute for Local Self-Reliance, a nonprofit group that criticizes Walmart, Amazon and other large companies.

The Institute for Local Self-Reliance “challenges concentrated economic and political power” and advocates for widely-dispersed responsibilities in local communities. It is funded mostly by foundation grants, such as Ford and Wallace Global, said Stacy Mitchell, co-executive director of the group.

Why Walmart wants to sell its own line of steaks

In 43 US metropolitan areas and 160 smaller American markets, Walmart controls 50% or more of grocery sales, according to the report. In 38 of these regions, Walmart’s share of the grocery market is 70% or higher, the group says.

While I'd like to think you are merely ill-informed, if you defend Walmart's business practicees to this degree, it appears that we do not have shared values. So, I will not be engaging with you again.

[fescuerescue]

124. I hadn't noticed. I go to Food Lion which is just down the street from Walmart

I like Food Lions selection and store layout better.

Sometimes I go to Harris Teeter. It's about half a mile further than Food lion and Walamrt. but their prices are higher.

If neither of those works, I'll go to the IGA. It's about 3 miles further than Walmart. Better prices but I think the selection is a bit less than any of those.


Look. Nobody would argue that Walmart isn't large. It is. It's the #2 retailer after all.

But it doesn't have a monopoly. Heck Food lion itself does $2.3 BILLION in food sales.

There's a reason why anti-trust law hasn't gotten anyone anywhere against Walmart.

[hlthe2b]

125. RURAL areas. What part of that is not clear? This is not all about your OWN personal experience

--your own personal situation, but a large segment of the country. While you should count yourself as fortunate, your lack of concern for so many of our fellow Americans is abysmal and unfortunately, attitudes like that help drive many Americans away from our party.

Last post because we obviously do not have shared values.

[fescuerescue]

126. I live in a rural area

This is not about your personal experience.

It's about the legal definition of monopoly.

Thank you. I'm glad that your last post because you clearly aren't getting it.

[hlthe2b]

127. It is about the legal definition of monopoly which is why antitrust investigations/suits

have been filed in the past and will again. You may think they won't succeed in an anti-regulatory climate, but so too did many when the baby bells were broken up. And ya know what? Courts decide. Walmart has lost past suits focusing on their predatory practices. (not hard to find if you have the legal acumen that you profess). And there is no lack of evidence of monopolizing behaviors and harm to people residing in REAL and the majority of rural areas of the US-- which are SO NOT suburban areas with five choices of grocery stores.

This is totally not all about you-- but the country at large. I have put you on ignore since it is clear that no real constructive discussion is possible. Good day.

[fescuerescue]

128. There is such a chasm of difference between 1980 AT&T and 2021 Walmart

That I find it shocking to have to say it.

In 1980. You had ZERO choice. You could drive for 1,000 miles and still be required to use AT&T.

You only have to drive about half a mile to find an alternative to Walmart.

This year, Amazon surpassed Wallmart, and hardly anyone noticed.

And if the evidence is there, why no anti-trust suits against Walmart?

[kickitup]

15. What's wrong with it is it will make the holidays even more difficult for the poorest among us.

Not everyone will qualify for the loan. Not everyone can afford to pay the interest if they do qualify. I live in a poor county in Eastern Kentucky and this will hurt a lot of families and make their holidays more difficult.

[NurseJackie]

21. It's obvious that Walmart is getting out of the "layaway business"...

... this is a reasonable alternative that allows people to pay monthly for an item that they get to take home today. I'm no fan of Walmart, but I think it's unreasonable for anyone to suggest that retailers are obligated or required to provide free layaway services.

[kickitup]

24. And I am pointing out to you the implications of their decision.

[NurseJackie]

29. Okay. But they're doing nothing wrong or illegal or immoral...

... in getting rid of an outdated free "store-credit" scheme. They could have just closed the layaway counter without notice and converted the space into storage, or a break room. How's that for implications? Instead, they've partnered with someone who can provide an alternative.

I think that's perfectly fine. I don't have a problem with it.

[kickitup]

33. It's wonderful that you don't have a problem with it.

FFS

[NurseJackie]

36. Right back-atcha!

[Demsrule86]

63. Personally, I think it is immoral. And I will shop less at Walmart because of it.

Normally, I think Walmart is demonized unfairly often...and companies like Starbucks are even worse, but this is a bad decision on their part. Sure they will make money on the deal...and that is always the bottom line...but many will default on these 'loans'...so they might lose money and I hope they do!n We are talking 30% interest.

[NurseJackie]

68. I don't shop at Walmart at all. I hate their stores and their crappy merchandise.

Their grocery store sucks too... rotting fruits and veg... more flies than freshness.

[Demsrule86]

89. Our Walmart has local fruit...the best peaches I have tasted in years...but to tell people this

replaces free layaway is just wrong.

[jimfields33]

81. Immoral?

Does every other store provide layaway? Can I go to Nordstrom department store and put things like my suits on layaway? I don’t think so. Nor do I believe the Dollar Store has layaway. I gave you both spectrums. What stores offer layaway today? Please.

[Demsrule86]

88. They have a store card. And the company they chose for this exciting opportunity charges

30% interest...so yeah while legal, it is greedy and immoral and to tout it as a replacement for free layaway is a big lie.

[Lancero]

100. At 30% interest you might as well just put it on a regular credit card.

Those, shockingly, tend to have a lower rate. Still a high rate that ends up keeping the poor, well, poor but lower than Wal-Marts new plan.

[Rorey]

31. Yes, they get to take it home today

IF they qualify for this Affirm thing, some of these folks are also more likely to spend more than they can really afford because they're paying for what they're buying later. This can eventually plunge them into a situation where they'll be much worse off than they were before. They're likely to default.

This can work for a disciplined credit user, but many poor people are not disciplined credit users.

I'm not at all saying that Walmart doesn't have every right to discontinue their layaway program. They're just covering up the fact that it truly will suck for poor people who depended on it with a "Look, we're making it better for you" campaign, when they're NOT making it better for the customers who depended on it.

[NurseJackie]

38. No, they're not "covering up" anything. They're discontinuing one thing...

... and offering something different to consider. People can choose to use it or not. Nobody is forcing anyone to do anything. People who are disciplined enough to make three monthly payments between now and Christmas will surely be able to handle 6 payments.

but many poor people are not disciplined credit users.

So are you suggesting that poor people are stupid? Or are you saying that they're foolish?

"Look, we're making it better for you"

Nobody is saying that. They're offering something different. It's just another option... a choice to take or not-take. I understand that many people don't like change... and others feel that they're entitled to free layaway services. Some people will be disappointed, others will welcome the change. --- The alternative would be to just shutter their layaway program entirely.

[Rorey]

42. Ok. This is going too far.

We're not going to see eye to eye on this, and I don't really appreciate that you're implying that I'm saying things that I'm not saying. So I'm done.

[NurseJackie]

48. I asked a question and gave you an opportunity to clarify.

I don't really appreciate that you're implying that I'm saying things that I'm not saying. So I'm done.

You previously made a broad-brushed statement that appeared to take a swipe at poor people pointing out that they lack discipline.

This can work for a disciplined credit user, but many poor people are not disciplined credit users.

With regard to this, I asked a question and gave you an opportunity to clarify. Instead, you take offense and walk away.

Okay, see you.

[Rorey]

49. It's as if the real NurseJackie has been taken over by an alien NT

[Demsrule86]

64. It is always a better idea to attack an argument...not a person. Nurse Jackie does not deserve such

a comment.

[Rorey]

65. Those of us who have had our words creatively misinterpreted didn't deserve that either.

Just sayin'.

[Demsrule86]

96. she dealt with your words...you attacked her personally...that is a different thing.

[Rorey]

50. I've taken note that I'm not the only one

I don't know what's up, but the hostility toward just about everyone is puzzling.

[NurseJackie]

55. I'm not being hostile toward anyone. I haven't insulted anyone.

I certainly never accused someone of being "taken over by an alien". I'm simply stating my opinions on this topic. I understand that people don't like change and that they're immediately suspicious of ANYTHING that Walmart does. There will always be someone who's unhappy. But taken as a whole, their affiliation with Affirm will be a positive thing in the long run.

[Demsrule86]

61. I do not agree with you on this one...the 'replacement' is not a replacement. It is financing and

it will carry a high-interest rate...sure Walmart can do as they please, but I think it is a really shitty thing to do.

[NurseJackie]

73. Okay, if we want to split hairs on word definitions... it's not a 100% or 1-to-1 exact "replacement"

Okay, if we want to split hairs on word definitions... it's not a 100% or 1-to-1 exact "replacement"... in this case "replacement" is not a synonym for "equivalent". Instead, I think a more accurate interpretation of "replacement" means that it's replacing an outdated layaway program and it's an alternate option that is being offered instead.

but I think it is a really shitty thing to do.

Okay.

This was interesting (link below). It appears that traditional layaway is a service that comes and goes. Maybe it will return at some future point.

https://en.wikipedia.org/wiki/Layaway#History

History

Layaway became common during the Great Depression of the 1930s.[3] It was widely withdrawn during the 1980s,[6] as the ubiquity of credit cards decreased its utility.[7] Wal-Mart announced in September 2006 that it would discontinue layaway service in all its stores,[6] citing the decrease in demand and a rise in cost of implementation.[8]

However, in September 2011, Wal-Mart resumed the service in the United States due to the new financial difficulties imposed by the economy and the increased constraints on consumer credit.[9] During the 2012 season, many retailers were heavily advertising their layaway service and offering it for free (or effectively free) if all conditions were met.[10] In contrast, Kmart has been providing layaway in the United States for over forty years,[11] and was at one time the only major national discount retailer offering the service.[2] Other large retailers offering layaway programs include Burlington Coat Factory, Marshalls, Sears, and T.J. Maxx.[7] In Canada, it is available from many businesses including local bike shops, jewellers, and adventure holidays.[3]

[Demsrule86]

93. It is helping people add debt for something that was free...they paid of what they set aside for

some months with no interest...now they pay 30% from day one...

[Politicub]

72. Walmart got out of the layaway business for years and no one noticed.

The it came back after 2008 for holiday shopping.

People don’t understand that it takes many people and a lot of stockroom space to run a layaway service at Walmart scale.

[NurseJackie]

75. Yep.. funny you should mention that. I *just now* posted a link and excerpt...

Yep.. funny you should mention that. I *just now* posted a link and excerpt... in my last post (prior to this one)

Here it is again:

This was interesting (link below). It appears that traditional layaway is a service that comes and goes. Maybe it will return at some future point.

https://en.wikipedia.org/wiki/Layaway#History

History

Layaway became common during the Great Depression of the 1930s.[3] It was widely withdrawn during the 1980s,[6] as the ubiquity of credit cards decreased its utility.[7] Wal-Mart announced in September 2006 that it would discontinue layaway service in all its stores,[6] citing the decrease in demand and a rise in cost of implementation.[8]

However, in September 2011, Wal-Mart resumed the service in the United States due to the new financial difficulties imposed by the economy and the increased constraints on consumer credit.[9] During the 2012 season, many retailers were heavily advertising their layaway service and offering it for free (or effectively free) if all conditions were met.[10] In contrast, Kmart has been providing layaway in the United States for over forty years,[11] and was at one time the only major national discount retailer offering the service.[2] Other large retailers offering layaway programs include Burlington Coat Factory, Marshalls, Sears, and T.J. Maxx.[7] In Canada, it is available from many businesses including local bike shops, jewellers, and adventure holidays.[3]

[ProfessorGAC]

108. Just A Thought

I find it likely (very much so), that they were killing layaway, no matter what.
So, the two options were: an interest bearing plan (Affirm), or nothing.
Since the lenders are 3rd party, there appears to be no financial benefit to Walmart. In fact, if those interest rates make a purchase prohibitive, they make actually lose a tiny fraction of sales. This likely business outcome is why I believe layaway was dead anyway.
I'm not a fan of this decision, as I can't believe a layaway program costs them all that much. Seems needlessly pecuniary.
This appears to be little more than a marginal alternative to nothing at all.

[Demsrule86]

60. I know about affirm...my college age daughter got involved...high interest rates...paid it off

and cancelled it. Also, not everyone who would normally use layaway will qualify. layaway was how you paid for Christmas presents over time without going into debt...this is a terrible thing for low-income folks who will not be able to afford the interest even if they qualify. When I was a young Mother and often broke we supplied presents via layaway and Black Friday for our four kids. Walmart is greedy for the interest...being poor is expensive in this country.

[leftstreet]

69. +1

[NurseJackie]

80. It's unclear if Walmart is getting the interest.

I'm certain that their partnership with Affirm is one that's mutually beneficial... but it seems to be a stretch to suggest that Walmart gets the interest. The underwriter will receive the bulk of the interest, I believe. I also read that some special offer items on Walmart.com are financed with zero percent interest through Affirm.

Also, not everyone who would normally use layaway will qualify.

That's probably true. Now that Walmart is abandoning this free service, it may be an opening that other businesses can use to fill-the-void (if the need or interest is great enough.) --- Obviously, when I said "interest" I'm referring to the state of wanting to know or learn about something (not money paid regularly at a particular rate for delaying the repayment of a debt.)

[Demsrule86]

91. They are not doing it for free...I am sure there is a very good benefit for them.

There is no other places to be toys these days except online...I think it is terrible.

[wellst0nev0ter]

107. That's because that's called "customer credit"

Sprawlmart already had its own credit card, but now it is preying on the most vulnerable customers by taking away a free service.

In b4:

[NurseJackie]

115. Are you arguing that Walmart should be required to provide free layaway?

Sprawlmart already had its own credit card, but now it is preying on the most vulnerable customers by taking away a free service.

Absurd. Nobody is "preying" on anyone. Are you arguing that Walmart should be required to provide free layaway?

In b4:

What is that supposed to mean?

[onethatcares]

10. welcome to your de facto credit card

this is Murika, and someone gotta pay.

I wonder why those sluggards don't have a credit card to buy that stuff already. It's not like the interest rates would be high or
they have a problem with "credit".

I'd wager the rates will be variable, based on the feelings of the bank at anytime,and are subject to change on a whim.

Hell, hospitals don't take payments any longer, they issue a c c with a 24% interest rate.

"Murika", you only think you own anything.

[Rorey]

12. Good points NT

[durablend]

14. They already do have a store credit card

Guess this is for those that don't qualify for *that*

[onethatcares]

16. there's always this

"Affirm's services operate alternatively to a credit card. Customers will purchase the item immediately, and pay for the items over a three to 24 month period. Customers can select their own payment plan and Affirm will match them with a lender who will provide them with a loan for the financed item. "


Jeeezzzzz, 50 years ago we took a loan with HFC, it took forever to pay that sucker off.

[Duncan Grant]

94. Debt bondage/Company store: You're all coal miners now.

The Walton family and their ilk are our oligarchs. Everyone works for them and they work for themselves.

[Lancero]

102. Debt Bondage Defenders: They're not exploiting you, they're helping you!

Just don't ever get in debt, and you'll never need access to the helpful services that they so compassionately provide!

[marybourg]

11. Stores started lay away before there were

credit cards, for their own benefit in bringing in business they would otherwise have lost. When it's no longer in their interest, they stop. That's capitalism. It was never a charitable enterprise.

[mikeysnot]

20. You know because the Walton's are just not

rich enough… and are just getting by.

[left-of-center2012]

26. How does this increase the Walton's wealth?

[kickitup]

35. Really? This will save them labor costs.

[Rorey]

44. Also, it solves a labor shortage problem for them

I get what you're saying.

[Duncan Grant]

101. Affirm offered Walmart a substantial cut of the pie.

Walmart earns money from the sale and the financing. If I’m not mistaken, they even earn a percentage of the interest on the individual consumer’s ongoing balance due. I wouldn’t be surprised if Affirm charges astronomical interest rate$ for this very purpose.

Finance is a predatory game. If you’re not the predator…

By the way, Affirm is designed to change/alter credit cards as we know it. Check them out with a critical eye. Readers might also like to reflect (Google it) on the old Providean Financial Corporation/WaMu collapse and failure.

[StarfishSaver]

22. When I was a kid, my parents helped me learn to budget and plan by using layaway

If I saw something I wanted and promised to pay for it, my parents helped me put it on layaway and then I went back to the store every week to pay a portion of my allowance toward the purchase. I remember feeling very grown up when I made my payments. And nothing matched the thrill of finally getting the item I had been budgeting for.

It makes me kind of sad to see layaway go away.

[Duncanpup]

30. Fucking greed

Walmart pays less taxes than us yet gotta try and make more money may they choke on the greed.

[left-of-center2012]

53. How are they making more money?

It is another company that will make the loans to customers.

[Duncanpup]

57. Interest

[left-of-center2012]

78. Yes, the LOAN company will make the interest

Not Walmart.

[Duncanpup]

82. Apologize I read that wrong

[FoxNewsSucks]

109. I would bet a lot that there is some way WalMart is getting a cut

Sure, most of the interest goes to Affirm, but you better believe there is a kickback to Walmart.

Just like financing a car. If you finance the car at the dealership, a commission is paid to the dealer, the salesman and the finance guy who filled out the paperwork.

Walmart cuts labor, gets paid more, and meanwhile people with no credit get sucked into a payday-loan kind of thing.

[fescuerescue]

120. I would be shocked if there isn't

otherwise, there is no upside for Walmart in providing the people to assist with the forms etc.

[Demsrule86]

112. Walmart is getting something out of this deal...don't kid yourself.

[Jim G.]

51. They'll Likely Lose More In Sales Than They'll Save In Costs

When my kids were growing up we used lay-away at Wal-Mart to buy large things, just so we wouldn't have to try & hide them at home. I doubt we would have if we had to pay interest.

I'm sure a lot of people who would have used their lay-away won't have good enough credit to use Affirm so it's a lose-lose.

[USALiberal]

54. I bet they analyzed it much more than we have! Nt

[MissB]

56. One of the fun stories of the holiday season

is reading about how some anonymous person goes into Walmart and pays off the balance for all the stuff on layaway.

Guess that won’t happen anymore.

Christmas is going to be tough this year for plenty of people. Heck, there are already stories about supply chain issues for holiday toys.

I agree that Walmart can do whatever it wants. It just seems rather mean spirited towards folks that are really poor.

[malaise]

58. They are now moving to hire-purchase

which is greed on steroids.
The businesses that practice this wickedness in the English-speaking Caribbean hate when when you pay for your goods in full.

[Celerity]

66. the old never-never scam

[malaise]

74. We from the Caribbean or with Caribbean links know this better than most

By the time most people finish paying for the crap they buy, it is either obsolete or broken.

I knew a family that had almost finished paying off for the fridge, stove and furniture and then there was a death which meant loss of income. The company sent some scumbag to seize it all.

Vultures come in a variety of forms.

[Celerity]

83. Brasil does that too, the favella people end up paying 500 usd for a 150 usd pair of Nikes

they do not pay the balance off until years after the shoes are trashed

[lark]

76. Corporate whores!

They are sticking the shiv into their customers who are already as a class, distressed. I hate Walmart and quit shopping there decades ago. Hopefully this will drive a lot of the poor from their stores and they will suffer a big loss as a result.

[KentuckyWoman]

77. This is not all bad.

Personally, I'm not a fan of credit. I'm fortunate though. I have always been able to finagle a way to live within my means. (aka no kids)

Walmart has been moving into financial services for some time now. They cater to the underserved population at the bottom of the economic ladder. Their options are generally superior to the other options available.

This option gets Walmart out of the layaway business - which is a real pain. Second, people without other access to credit can obtain it since Affirm has no minimum credit score requirements. It's not a great option, but certainly better than payday loans and title pawns.

Yes, some will be left out. They'll need to figure out another option.

[LeftInTX]

84. I'm 65 and never purchased anything on layaway

Mainly because I figured by the time I paid most of it off, I wouldn't want it anymore.

I did make judicial use of "hold".

However, my reasons were that I was "wishy-washy" and "undecided" about an item.
Alot of my friends put stuff on layaway and then they didn't want it. They lost money.

I grew up in a family where we didn't have credit cards. We paid cash for everything except our mortgage.

[dsc]

86. At least after reading the article I see why there is a charge

so they are apparently replacing layaway with instore credit. I have to think this will cut into sales so it seems to be a bad business decision to me (especially since at best they are getting part of the fees).

[Captain Stern]

90. This is no big deal. Most stores don't have layaway any more.

Target, Costco, BJ's...none of those have layaway as far as I know.

Maybe Sears still does, but their still back in 1990. lol

[marie999]

97. You should give what you can afford, not go into debt for it.

I never expected more than they could afford from members of my family for my birthday and Chanukah. If you are putting yourself in debt buying Christmas presents then you should rethink what Christmas is about.

[Rorey]

103. Definitely

My mother-in-law used to charge gifts every year for her 20+ grandchildren, along with her adult children and their partners, and then would struggle all the next year trying to catch up. We tried to convince her to stop, and she finally did, but it was very difficult for her to admit to herself she couldn't afford what she was doing.

What we do now is to give affordable gifts to only the children (meaning don't give it if you can't afford it). Everybody is fine with that.

I told my family long ago that I absolutely don't want anything, except for photos. I do always love those. And when a grandchild makes me a gift like a drawing or colored picture or simple craft, I am thrilled.

I have a truly wonderful family. I'm thankful every day for all of them.

[Rorey]

104. A fun activity that we do: Saran Ball

It's a blast. People can put in whatever they want, or nothing at all if they can't. I generally start collecting gift cards that I get with rewards throughout the year, and then also put in money and candy and fun little things. Everyone has a great time with it.

[milestogo]

105. Walmart is just an awful company.

[FoxNewsSucks]

110. Affirm also has a similar deal with Amazon

to finance "qualifying items". Usually things over $40-50 .

Amazon also has their own affinity card. It's hard not to think that both companies are just doing this to hook and exploit people with such low credit scores that they can't get a regular walmart or Amazon card.

[left-of-center2012]

130. I did not know Amazon has an affinity card

I have an Amazon credit card but it is with Chase Bank.
It gives me a lot of benefits including free shipping.
I also accumulate bonus points which I can apply to purchases,
In my case I usually use them to buy paperback mysteries such as John Sanford's Prey series.

[FoxNewsSucks]

132. I may be misusing the term "affinity"

because what you describe is what I thought was meant by an affinity card. The company doesn't actually issue the credit itself, a partner bank or other lender issues the card and uses the logos and runs the reward program. I have a couple that I use for everything possible, the points & miles really add up

[iemanja]

111. I didn't even know lay-away existed anymore.

[LiberalFighter]

114. This should be fun.

Will they do that with their gas station too?

Thankfully I don't shop there. Never felt I could get deals there worth the time or effort that were available elsewhere.

[fescuerescue]

116. Customers can still do layaway.

Just put those payments into a drawer, and the buy the item when they have enough.

That would also save alot of gas expense driving to the store each week.

This is why I've never quite understood layaway.

[Xolodno]

131. I hear you...but....

A tire blows out, that drawer money suddenly seems awfully convenient. if they dropped the money in layaway, its a bit psychological, they can't access it. So they find other ways to get that tire replaced.

And its not like Walmart or for that matter anyone else is losing on it, they take that money and deposit it into a interest bearing account. Now you could say, why don't they do the same...bad credit makes getting a bank account difficult and even if they do get it, if its not at a certain point, fee's come into play.

Layaway was a nice option for my wife and I way back when we just engaged. Our budget was a shitty bedroom set...but layaway allowed us to get a very nice set that we still have today (the shitty set we would probably have to replace in five years). Flip side, I had two grand in the bank for our honeymoon....yeah, that disappeared fast and was left with 200 bucks. We used some of the money we got from the wedding to take a small trip up the coast vs. the Cancun trip we planned.

When people suddenly need a cash outlay, they panic and don't make the best decisions. When their money is tied up, they are forced to take a step back and figure things out.

[themaguffin]

129. Terrible strategy given the rise of Buy Now, Pay Later apps (which don't charge interest).

[joetheman]

133. Well, one thing the Pandemic has taught me and some others...we don't need more stuff!

Lay away your funds at home and then go buy the stuff when you have laid away enough. i bet you won't even want it later.