CHICAGO (Reuters) - Eager to keep its sales momentum growing, Wal-Mart Stores Inc is kicking off the holiday season early, cutting some toy prices in September, offering layaway in October and selling more Christmas decorations.
The winter holiday season, which traditionally runs from the day after U.S. Thanksgiving through Christmas, is the most important time of year for retailers. In recent years, U.S. chains including Walmart have advertised earlier and offered deeper discounts to drive sales amid the struggling economy.
Walmart, the world's largest retailer, is getting back into layaway after a five-year break, albeit on a smaller scale, after other chains received a boost by offering the service during the downturn. It is also bringing back a host of items, such as Christmas village sets and outdoor decorations, that it had removed from stores last year as part of a failed attempt to streamline its assortment of goods.
The moves announced on Thursday come as the chain's core shoppers continue to face a fragile economy including steep gasoline and food prices, high unemployment and a housing slump.
Sales at stores open at least a year fell for nine straight quarters, as shoppers went elsewhere, but they rose in July.
As Walmart's sales rebound and the company works on cutting expenses, it can again become more aggressive with its pricing, said Gilford Securities analyst Bernard Sosnick.
During the last couple of years, Walmart had a small amount of Christmas merchandise in its stores in the middle of October. This year, those items will arrive in late September.
Wal-Mart is cutting prices on dozens of toys to $15 starting September 12, including Leapfrog Scribble and Write, Disney Princess Toddler Doll, Hasbro Inc Transformers 3 Mechtech and certain Lego sets. Those toys typically sell for around $20. That "rollback," as Walmart calls it, is also coming a little earlier than usual.
The layaway plan, which debuts on October 17, has restrictions and fees that should help reduce costs and complications that caused Walmart to walk away from general merchandise layaway after several years in 2006.
Wal-Mart, which still offers layaway on fine jewelry year-round, said its customers have been asking about layaway for other things. At this point, it will have layaway for toys and electronics leading up to Christmas and will then evaluate whether to proceed with a broader year-round plan.
"We're always looking for ways to ease budget strain for our customers, and we know this holiday season in particular brings with it additional financial pressure," said Duncan Mac Naughton, Walmart's chief merchandising officer.
Customers must spend at least $50 to sign up for layaway, and each item has to be priced at $15 or more. Customers must pay a $5 fee, put 10 percent down and complete their payments and pick up their items by December 16, or they risk having to pay a $10 cancellation fee.
After Walmart walked away from layaway, other chains kick-started programs and found success.
Sears Holdings Corp's Kmart chain has been offering layaway plans for more than 40 years to help customers make expensive purchases. It offers many items for layaway, including appliances, clothes, electronics, furniture and toys.
Kmart gave its customers up to 12 weeks to pay for layaway purchases during the 2010 holiday season, versus the eight weeks that is typical. Normally, an eight-week contract requires a $5 service fee and a 12-week layaway contract requires a $10 service fee.
Toys R Us began offering layaway at its stores during the 2009 holiday season and has expanded the program to include a wider variety of items, such as iPods and digital cameras. Generally, it charges a $10 fee for layaway, and in the event an order is canceled, a $10 charge.
(Additional reporting by Dhanya Skariachan in New York; Editing by Steve Orlofsky)
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.