As more Americans lose their jobs and see the cost of necessities such as food and gas increase, they become more cautious of buying big ticket items such as televisions, appliances, and laptops.
Brooklyn, NY (PRWEB) June 23, 2011
Youlayaway, a New York City startup that offers online shopping comparison for products available on layaway at major retailers, is seeing a rapid increase in online layaway transactions as the US economy continues to stagger.
The United States economic downturn has urged many consumers to curb their spending habits as unemployment and food costs continue to rise. In a recent report released by the Federal Reserve, the price of consumer goods rose 3.8% in the last 12 months up to May 2011, making it the biggest increase since October 2008.
According to the US Bureau of Labor Statistics, unemployment rates have been steadily increasing since March. The unemployment rate was 8.8% in March, 9% in April and 9.1% in May. In addition, the food price index rose 0.4% in April and May. "As more Americans lose their jobs and see the cost of necessities such as food and gas increase, they become more cautious of buying big ticket items such as televisions, appliances, and laptops. As a result, many have turned to layaway as a preferred way of paying for big purchases," says Laura Mai, Marketing Director of Youlayaway.
Layaway is a payment method that allows customers to pay for their purchases in installments and receive the item once it has been completely paid for. Layaway was made popular during the Great Depression, but declined in usage with the introduction of credit cards. However, in the last few years, layaway has made a comeback. With a steady stream of weak economic indicators being released since March, Youlayaway has seen a 17% jump in layaway transactions at major online retailers with which it partners. This trend is also continuing into the month of June.
As economic forecasters continue predicting a double dip recession, consumers are shunning their high interest credit cards and turning to layaway as an alternative payment method. Youlayaway expects another significant increase in layaway transactions in the next two quarters, as consumers get ready for the 2011 holiday shopping season.
Youlayaway is the industry innovator in layaway shopping. Youlayaway offers an online shopping comparison service for over 150,000 products available on layaway at major retailers. Additional information is available at http://www.youlayaway.com.
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