KMART PITCHES LAYAWAY SERVICE FOR HOLIDAY SHOPPERS

Kmart launched a campaign to offer a layaway service last month. They’re hoping that this slow payment method will drive sales at Kmart this holiday season. (I was there last night and there was not even a mouse bargain hunting).

Print ads feature Mr. Blue Light, Kmart's animated light bulb, promoting the layaway service as a way to get gifts at affordable prices for Christmas. The service allows consumers to place a deposit on a purchase and have the retailer hold it until a full payment is made (for those of us born in ancient times this was a very common way to buy clothing).

"People are going to have to be very creative this year to get Santa to show up," said Terry Brophey, vp of integrated marketing communications at Kmart, Chicago. "And the whole campaign is based on promoting value."

The campaign targets young moms with a household income starting at $50,000.

"We just wanted to really turn up the heat on our value message across the board," Brophey said, adding that the retailer will advertise 25,000 gifts under $25 and other deals.

"People cut back on general spending and they go from Neiman Marcus to Macy's and from Macy's to Target," said Rachael Croson, a professor of behavioral economics at the University of Texas at Dallas. "People are still going to spend this time shopping; what changes are where."