Luke: Layaway represents best elements of consumer culture

Layaway has enjoyed a renewed popularity since the economic downturn of recent years, sparking an early holiday rush this season. (AP file photo)

When KIRO Radio’s Luke Burbank was a teenager, he fell in love with a fancy Chicago Cubs jacket he saw at Seattle’s Northgate Mall but didn’t have the money to pay for it. So he turned to what used to be a staple for those who didn’t have credit cards: layaway.

Luke says every week he would dutifully ride his bike and “visit” the jacket, putting down whatever money he’d earned from mowing lawns and allowance.

Layaway went out of fashion over years as more people got credit cards and could charge things and take their purchases home immediately. But since the economic downturn of the last few years, it’s back in style in a big way.

The Wall Street Journal reports there has been an early holiday toy rush already this fall as more shoppers turn to layaway to secure the hot sellers.

“It is the combination of the tough economic climate and the lack of fees,” said Troy Rice, vice president of stores and services at Toys “R” Us.

Toys “R” Us and other retailers launched their layaway programs even earlier this year to meet the increased demand. The company says it’s working so well, it’s had to stop taking reservations for some popular electronics including the new Wii U gaming console until it gets more shipments. Several types of the new talking Furby dolls are in such high demand the company won’t take any more orders.

It’s not just toys. Stores are seeing strong sales for everything from TV’s to cameras.

It’s a trend Luke loves. “In every way that buying things on credit, when we can’t pay for them, represents the sort of worst things of our consumer culture, layaway represents the best elements. It’s like you have this thing you want to get and you have to work for it and once you’ve paid it off, you get to have it,” he says.

Layaway has gotten so popular, Wal-Mart says it opened nearly 145,000 accounts on the first day the service was offered. And shoppers tend to spend more because they can save for an expensive item they otherwise wouldn’t have been able to afford.

The company that makes Razor motorized scooters says it has seen a triple-digit jump in layaway sales of its high end scooters, some of which sell for as much as $289, the Journal reports.

As for Luke and his coveted Cubs jacket, he ultimately got it, with a little help.

“My mom did the sweetest thing. I think she was impressed at my self reliance and one day I got done with soccer practice and she was sitting there and she had a box. She had paid off the last $20 of my jacket.”

Luke says one of his little brothers was seen wearing the jacket recently, a treasured family heirloom “all purchased thanks to layaway.”