Retailers return to lay-by

It may seem like a seriously out-dated notion but lay-by is set to make a comeback as a result of the global economic crisis, the Financial Times reports.

Known as layaway in the US, the arrangement in which an item is set aside and paid off in instalments has recently been ignored by retailers thanks to the rise of easy credit.

But as the credit crunch continues to bite, major US retailers like Sears department stores and Kmart claim their lay-by services have proved a hit with customers.

US clothing retailer Buckle says it outperformed the rest of the retail sector in November and December last year after promoting its lay-by service in online advertising.