Wal-Mart brings back layaway plan

Here's a sign that budget-conscious shoppers are struggling to make higher-ticket purchases, especially with the holidays fast approaching. Wal-Mart did away with layaway five years ago because customers were so hooked on credit cards - and which added to the debt problem that's holding up the recovery. From the NYT:

"It just tells us the customer's still struggling, as they tell us about their concerns with energy prices, housing prices, the job security, that 9.2 percent unemployment -- it tells us that this is a fragile economy and the customer needs our help," [said Duncan Mac Naughton, chief merchandising officer for Wal-Mart's United States stores]. Layaway means that a store sets aside a product and requires customers to pay for it over time, usually charging a small service fee but no interest. With layaway, someone living paycheck to paycheck could potentially afford a more expensive item than otherwise, given the extra time to pay for it.

Along these lines, revolving credit, which covers credit card debt, was down sharply in July, indicating that Americans may be cutting back on non-essential items. (Bloomberg)