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The
company will kick off the program that allows shoppers to pay
for holiday gifts and other products in installments, on August
28, two weeks earlier than last year, Anne Marie Kehoe, vice
president of toys, said in a briefing.
It will make 40,000 items available under the payment plan,
roughly a fifth more than last year.
The move reflects Wal-Mart's desire to get a head start on a
holiday season that is sure to be highly competitive. Toys are
an especially big focus for retailers this year, ahead of the
December release of "Star Wars: The Force Awakens" - the first
in a new "Star Wars" trilogy being produced by Walt Disney Co.
Wal-Mart said it will have 500 new Star Wars products in stores
on Sept 4, as part of a global roll-out of movie-related
merchandise at various retailers. Wal-Mart will make thousands
more items, including apparel, grocery and health products,
available online.
Wal-Mart hopes the layaway program will ease purchases of Star
Wars items, as well as other toys featured during a week-long
toy promotion. Besides starting layaway earlier, it is reducing
the minimum price for eligible items to $10 from $15 on a
minimum basket of $50.
"In the five years we've been offering this holiday layaway
program we've discovered that customers use it for a whole host
of reasons, from being able to better budget their money and
avoiding credit card fees," Kehoe said.
Layaway programs can have a sizeable impact on a retailer's
sales. Retail consultant Burt Flickinger estimates layaway can
account for as much as 10 to 15 percent of holiday revenues at
Wal-Mart stores in poorer areas.
Wal-Mart said it would hold midnight Star Wars events at 2,900
stores on Sept 4 and family events at the same number of stores
the following day. Kehoe said she expected strong demand for
toys from collectors, besides children.
Helped by the Star Wars launch, the U.S. toy industry is poised
to grow 6.2 percent in 2015 to $19.9 billion, according to
research by the NPD Group tracking about 80 percent of U.S.
retail sales.
(Reporting by Nathan Layne; Editing by Clarence Fernandez)
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