Kmart goes Old School
This week Kmart did what only Kmart knows how to do: Go old school. I thought at first that I was dreaming when I saw a television ad for Kmart’s Christmas layaway plan.
For those of us too young to remember layaway, it is a pre-easy credit system in which a consumer picks out an item they want, makes a down payment, and then makes a series of payments until the item is paid for. The retailer, in this case Kmart, keeps the item in layaway and gives it to the consumer when the last payment is made. With today’s tight credit and people hurting for money, it is an interesting and daring move by Kmart.
According to an Adweek article, "Kmart Touts Layaway for the Holidays," Kmart is "…the only mass discount retailer to offer a layaway service. The hope is to drive sales at Kmart stores this holiday season, as consumers search for penny-pinching options during the recession."
Reflecting Kmart’s five and dime store DNA, the layaway program gives a strong message to consumers that Kmart understands their problems and will help them through tough times. It is also a great way for consumers to make sure that they get the scarce, hot items by laying them away before the credit driven Christmas rush takes off.
So, I say: "Good for Kmart!" They not only did something right. They did something that they are uniquely positioned to do: Go old school.
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