The Charm of Waiting: How Layaway Became a Relic

The structures of consumption have changed significantly over the decades. Once, purchases on installment plans, known as layaway, enjoyed considerable popularity. While today the "Buy Now, Pay Later" (BNPL) trend is gaining momentum, the earlier system, where goods were only handed over after full payment, is hardly remembered. Layaway began in the economic crisis of the 1930s, the Great Depression. It allowed people to acquire necessary goods without exposing themselves to the risk of high debt or credit risks. This approach remained relevant into the 1980s and 90s, as it enabled the gradual payment for coveted products without interest burdens. Well-known retailers like Sears, Kmart, Burlington Coat Factory, Marshalls, and T.J. Maxx used this payment method, providing even lower-income consumers access to higher-quality products. Even Walmart briefly reintroduced the system during the Great Recession in 2008. However, its popularity waned with the increasing spread of credit cards and the rise of online shopping. Technological developments rendered traditional installment systems obsolete, as they were considered less convenient and more time-consuming by comparison. Credit cards took the place of layaway by enabling immediate ownership against later payment, albeit with interest and penalties for late payments. The latest trends in the payment sector, shaped by providers such as Afterpay, Klarna, and Affirm, now allow buyers to receive items immediately and spread the costs over time, often even without interest. While this offers new advantages, concerns over potential indebtedness remain. Some retailers, particularly discount or niche providers, are keeping layaway alive, especially during the holiday season or for costly purchases. Companies like Burlington and Gabe's demonstrate that there are still markets where installment purchases are attractive. Lastly, layaway appeals to those who wish to avoid debt or save strategically. Nonetheless, a return to a widely used model is considered rather unlikely.