HIGHLAND LAKES — With a financial forecast that calls for slower-than-usual spending this holiday season, some larger chain stores are looking for ways to make shopping for those big-ticket items a little easier this year.
On the national front, large-scale retailers including Kmart, Burlington Coat Factory, TJ Maxx and Marshalls have recently resurrected layaway.
But in the Highland Lakes, the demand for layaway, or tailored payment plans varies, according to local retailers. Casey Blair, manager of Blair’s in Marble Falls, said that she anticipates an increase in participation in layaway at her store this year, which specializes in Western-style clothing.
“I expect to do more layaway than usual. It’s a good hiding spot, and it breaks up the payments,” she said. The store is at 2501 U.S. 281.
According to the National Retail Federation, consumers will spend conservatively this season. The NRF’s 2008 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, revealed that consumers plan to ring up an average of $832.36 on holiday-related shopping. This represents an increase of just 1.9 percent over last year’s $816.69 and is the lowest increase in planned consumer spending since the survey began in 2002.
Layaway is largely considered a relic of the past and became popular during the Depression. The payment plan allows consumers to buy an item without paying the entire cost at once. Businesses with layaway plans hold items for consumers who leave a specified deposit and then pay for their purchase in installments.
Ken Hering, vice president of C&D Home Products Studio in Marble Falls, U.S. 281 at Mission Hill Road, said he is mulling offering a layaway program to buyers in his shop this holiday.
“We used to offer it, and we may end up doing it again. I’m not sure, but with the way things are going credit-wise, more people may want to use it,” he said.
Hering noted there are drawbacks to offering layaway.
“It ties up the merchandise because you have to hold the item for (customers). And in some cases people don’t finish through with their payments,” he said.
Hering explained in those situations, merchandise can become outdated and complicate re-sale of some items.
At Aladdin Home Store in Marble Falls, 2901 U.S. 281 North, owner Tom Barker said that interest in his store’s layaway program is spotty.
“Our customers don’t have to do a lot of layaway because we do our own financing here,” he said. “That way our customers can go ahead and take their purchase home and enjoy it. Our business has been good.”
Layaway is often offered by jewelers, but so far, shoppers at Salem’s Jewelry in Marble Falls aren’t using it any more than usual.
“We have a 90-day layaway program available,” said Salem’s employee Lina Lusinger, “but we haven’t noticed it being used increasingly.”
The store is at 518 U.S. 281 North in Marble Falls.
Dale Seabaugh, owner of Highland Furniture Center, 1500 RR 1431 West in Marble Falls, categorized use of layaway at his shop as “occasional.”
“We do offer layaway, however we’ve seen no real change in it recently,” he said.
Seabaugh added that business continues to be good, in spite of the slowing economy.
“It’s certainly a little softer than it had been, but we’ve been pleasantly surprised to see that customers here in Marble Falls continue to fix their homes up and buy new furnishings,” he said.
At Savuth-Te, a jewelry store on the Square in Burnet at 230 S. Main St., Peter Te said he is anticipating renewed interest in layaway participation.
“I think a lot of (customers want to) spread their income around more,” he said.
According to a consumer survey recently conducted by the market research firm NPD Group Inc., the number of consumers who plan to spend using credit this year is down by 2 percent.
“Consumers will be keeping careful watch on their credit-card spending this season,” said Marshal Cohen, chief industry analyst. “I think many will refrain from purchasing an indulgence or splurge gift, and for the first time in years, may actually cut people from their shopping lists.”
But even the more expensive items on holiday wish lists this year shouldn’t necessarily be considered off limits, remarked Tom Kendall, general manager of Johnson Sewell Ford Lincoln Mercury in Marble Falls. He noted that consumers considering the purchase of a car might be pleasantly surprised about today’s financing options.
“A lot of customers do not know the variety of lenders out there who are still actively in the market. We’re financing vehicles all the time,” Kendall said.
“We have very aggressive rates, and the prices of vehicles have been lowered so much that it’s allowing lenders to take hard look at each particular deal,” he continued. “Also because of the credit crunch, lenders are aggressively trying to get these loans approved. In some cases the market is so tight, they’re competing with each other.”
Kendall added that December is traditionally a solid month for car sales, and he is optimistic about the coming weeks.
“The economy is tough now, but manufacturers are offering some incredible rebates,” he said. “This is allowing people to get into vehicles at discounted costs. Sales this year have been softer than usual, but we are lucky to be in this area and are planning on having good December.”
