Research and Markets: Layaway: The New Frugality Meets an Old Idea


Research and Markets ( has announced the addition of the "Layaway: The New Frugality Meets an Old Idea" report to their offering.

As consumers continue to adjust their payment patterns in the wake of the Great Recession, major retailers' layaway programs appear to be gaining new traction during the 2012 holiday shopping season. Programs are attracting consumer interest beyond the demographic segments traditionally associated with layaway. The much-discussed "new frugality" of post recession consumers suggests that delayed purchasing gratification is not just a required virtue for some consumers; it may have new acceptability as a credit alternative.

"Will layaway become a fixture of the retail environment beyond today's post-recession environment, perhaps on a year-round basis? Consumers' cautious use of credit cards suggests discipline-focused layaway programs can have relevance today, especially as they overcome any downscale stigma they might retain from past incarnations. Layaway transcends our usual categorization of payments as pay-now/ pay-before/ or pay-later. This pay-before/over-time product may just replace some traditional credit card volume this holiday season, and perhaps beyond it," comments Ken Paterson, VP for Research Operations at Mercator Advisory Group and the primary author of the report.

This report reviews major retailers layaway program offerings in the context of consumer interests, and explores its potential for future growth.


- Discussion of the consumer appeal of layaway

- Demographic profile of users of layaway services

- Layaway's benefits to leading retailers

- New merchandising opportunities beyond the traditional holiday season, especially for e-commerce retailers

Key Topics Covered:

Executive Summary


Traditional Uses of Layaway and Beyond

The Demographics of Consumers Who Use Layaway

Drivers for Consumers to Use Layaway

Perceived Benefits

Perceived Drawbacks

Drivers for Retailers to Use Layaway

Negative Aspects of Layaway for Retailers

Major Retailers That Use Layaway




Comparison of Program Terms

Other Retailers

Online and Other Retailers Featuring Layaway

Other Innovations in Layaway Programs

Strategic Implications

Online Opportunities

Why Not Year-Round?

The Appeal of Closed-Ended Terms

With Growth Would Come Regulatory Scrutiny

End Notes

Copyright Page

Companies Mentioned

- Best Buy

- Kmart

- Sears

- Toys "R" Us

- Walmart



For more information visit

Research and Markets
Laura Wood, Senior Manager
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Banking and Financial Services

Posted In: Press Releases