Though consumers are mainly focused on Halloween being a few days away, retailers and producers have been focused on the upcoming holiday season for weeks. Many retailers are already speculating as to what will be on everyone's list this year so they can prepare what to have in stock. According to some researchers, the belief is that retro toys will be a huge seller. But there is also speculation that some of the new hot tech toys will be at the top of the charts. Though the economy is not in its best form, many major retailers are offering layaway, which is helping to increase sales.
My best guess at the retailers' problem is that they have struggled to sell higher priced items during the past holiday seasons. People are spending so much on parties, meals, decorations, and gifts for others, that some people can not afford the high priced items.
By adding layaway, many people believe that they can afford the items that they want and need because they are paying for the item over a period of time, rather than all at once. They can also complete all of their holiday shopping earlier by placing items on layaway.
The target audience for layaway is more than likely lower-income families and young professionals struggling to afford gifts for everyone. The idea of completing a shopping list months before the holidays can also be quite appealing to anyone. So many people stress over getting everything done that this could draw anyone into a major retailer, and maybe even encourage them to purchase more than they initially intended (impulse buys).
I believe that this addition of layaway could be very successful for retailers as long as it is advertised enough (WalMart appears to be doing a good job now; I have seen a lot of their advertisements for layaway on TV), as well as encouraged to consumers while at their point-of-purchase.
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