Lexington, KY - Layaway began in the Depression, to allow customers to buy merchandise they wanted, but couldn't afford to pay the full price for then. Buying on credit was too risky. Layaway meant that the merchant kept the item until the customer paid for it in full.
When credit cards became popular, stores stopped offering layaway. It wasn't as modern or as convenient as using the flashy cards. But as sales have dropped in recent years, some retailers, including Kmart and Sears, reopened their layaway departments.
Some Lexington merchants have always offered layaway to their customers.
Rachel Savane, jewelry designer and owner of Savane Silver, had layaway even when she was selling at craft fairs years ago. She likes layaway because, "My pieces can be expensive for some people, and I want to do what I can to make my work accessible for everyone," she said.
For 20 percent down, Savane's customers can pay off the balance in three months. They can pay weekly, monthly, or in a lump sum, with no fees or interest.
Another reason Savane offers layaway is because she creates one-of-a-kind jewelry. A customer who returns to buy later when she has the full price may find that someone else bought the ring or bracelet she wanted.
Because each piece she creates is unique, Savane finds that while some customers layaway gifts, "more often people are choosing for themselves," she said.
Her work sells for $20 to $2,000. Jewelry put on layaway usually sells for $200 to $1,000.
Savane, whose store will move by early December to 130 North Broadway, has customers of all ages who use layaway, particularly college students and young professionals. She finds that with "a little organization," layaway is "no trouble, not for me."
Since 1971, Dennis Gibbs has been offering layaway to his customers who buy new and used furniture, antiques and house furnishings at Another Man's Treasure. Even though layaway items take up floor space and he sometimes has to call people who forget about their layaways, it is a matter of principle in part for Gibbs.
"We enjoy doing it," he said.
"I believe in layaway wholeheartedly, rather than having credit."
For a 30 percent deposit, customers may have up to 90 days to pay off the balance on layaway items, with no interest or fees. Gibbs finds that most people who use layaway have used it before, but "younger people [accustomed to credit cards] don't know what it is."
People who are remodeling or moving find that laying away purchases, especially large ones such as a bedroom suite, conveniently keeps the new furniture out of the way until they're ready for it.
"There'll always be a need for layaway," Gibbs predicted.
"There's still a vast number of people who do not want credit cards or who can't qualify for one."
Bob Willcutt has offered layaway for customers of Willcutt's Guitar Shoppe since it opened in 1979.
"It works fine for both parties as long as customers keep up payments," he said.
For 10 to 20 percent of the price, his customers can take up to three months to pay the total cost of their new guitars, with no interest or fees charged. They generally layaway guitars that range from $100 to $4,000.
While layaway isn't requested as often as it was 30 years ago, Willcutt has noticed that "some parents are concerned that their kids learn to work toward something."
Willcutt said that the parents will put a guitar the child wants on layaway in the beginning of the summer season. "
The kids work cutting grass and pay every week until the guitar is paid for," he said.
"That's the best lesson of layaway - you have to work toward something."
Murphy's Camera Center has always offered layaway to its customers.
"For a lot of budgets it has worked out well. It's another option," said Manager Don Barker.
Customers pay 10 percent down and the rest within 90 days, however they wish, with no fees or interest. Camera outfits (body plus lens) are the most popular layaway items, usually ranging from $500 to $1,000.
Layaway is requested most for Christmas gifts. Barker noted an advantage: "They can keep the recipient from seeing the gift.
We offer a hideout with an extended benefit."
Sometimes people forget layaway items, even Christmas gifts. "We've had to call and remind them," Barker said, adding that he has even delivered a few holiday layaway presents to customers.
The return of layaway and its long existence at many stores remind us that many people still don't buy what they can't pay for. Barker has noticed that "in the past year, with the recession, people are wanting to pay with cash." Few merchants would argue with that.