By Andy Sevilla.
Though not all big box retailers in Kyle and Buda are offering a layaway program this holiday season – a plan designed to help buyers make payments on goods over the course of a few months—some businesses have seen increased holiday sales because of the project’s initiation.
The H-E-B Plus in Kyle began its layaway program for the first time this year, allowing shoppers to pay for goods between Sept. 1 and Dec. 13. A sales associate for the retailer, who only identified herself as Priscilla, said the program was put in place this year to help shoppers buy Christmas gifts, while affording them the ability to pay for their purchases over time.
H-E-B’s layaway program allows customers to buy appliances, electronics, toys, perfumes and gift sets by putting down 10 percent of the purchase order cost and making payments through Dec. 13. Priscilla also said customers could cancel their purchases with only a $5 penalty.
Representatives for Target and Kohl’s in Kyle said their businesses were not offering layaway programs, and would not comment on the reasoning behind those decisions.
The Buda Walmart has offered the program for the “past three years,” according to a customer service representative. She said their layaway program was in effect from through Dec. 13.
At that Walmart, customers can put goods on layaway that cost more than $15 each, and the plan is limited to only toys, electronics, some sporting goods and some houseware products.
The national retailer requires a 10 percent down payment on the purchase order put on layaway, and customers can cancel the plan with a $10 penalty.
Cabela’s in Buda is also offering layaway, but beyond the Christmas holiday. The outdoor retailer requires a 25 percent down payment on orders, which must be more than $200 to qualify. Their installment program runs through Jan. 3, allowing customers to take advantage of holiday sales.
Texas State University business professor, Matthew Painter, said layaway programs offer consumers a prudent alternative to incurring debt.
“Being able to capitalize on a special or time-sensitive discount without having to use a credit card is a smart move,” he said in an email. “It’s also a great teaching tool for parents.”
Painter, the MBA program director for the McCoy College of Business Administration, said using a layaway where there is a tangible goal is a great way to demonstrate to kids that swiping a credit card isn’t the only option.
“It forces patience and savings,” he said.
