While the state of the economy might have a negative effect on consumers, there is one retail service that may see gains this year: layaway.

Layaway, which started around the time of the Great Depression, allows consumers to pay small amounts periodically until the full price of an item is paid, explained Kathy Grannis, manager of media relations for the National Retail Federation.

When having a credit card became more popular, however, the number of people using layaway declined, she said.

"Retailers decided they'd be better served if they discontinued the service and instead put those employees in the front of the store and used that extra storage and shelf space for other merchandise," Grannis said.

Currently, layaway is available in only a handful of national retailers.

"Most large retailers got rid of their program in the last decade or so because their shoppers were using debit or credit cards to make their purchases," Grannis said.

Grannis said the few stores that offer layaway have an opportunity to improve sales this holiday season.

"We do think that retailers that are currently offering the program right now do stand to benefit because families and shoppers are very budget-focused this year," she said.

Grannis is not alone in that opinion. Others who study the retail industry believe businesses that offer layaway will see an increase in customers using the service this Christmas season as the economy struggles.

Sherry Cook, who works in the Department of Marketing at Missouri State University, said layaway may look more tempting this holiday season for those who like to pay a little at a time.

"It may become more and more the norm with credit being tight," Cook said.

According to the National Retail Federation's 2008 Holiday Consumer Intentions and Actions Survey, the average consumer plans to spend $832.26 when shopping for the holidays. That figure is up 1.9 percent from last year.

But how will the average consumer spend that money?

If they are like Lisa Shockley, they will look to layaway as an option that allows them to spread out their payments.

Shockley, a 43-year-old grandmother on disability, headed to the layaway counter at Kmart recently with a cart containing dolls and games.

"Christmas presents for the grandkids," she said. "I'm getting started early this year."

Shockley said she uses layaway because she can spread out her payments and hide gifts from her children and grandchildren.

"That way they don't get into them," she said, smiling.

Policies

Layaway policies vary depending on the store.

Andrew Murphy, a Kmart associate, said the store charges a $5 nonrefundable layaway fee. This same charge applies for any layaway order, regardless of the number of items. The minimum down payment is $15 or 10 percent of the overall price, whichever is greater.

Customers typically make payments every two weeks, and there is a $10 cancellation fee. If someone is late on a payment by two weeks or more and does not cancel the order, Kmart will put the items back on the shelves, Murphy said.

Payments can be dropped off in person or mailed.

Betty Cox, who works in the layaway department at Kmart, said the store doesn't accept any new layaways between Dec. 12 and Jan. 2.

"We need some time to clear out," she said.

Baby News on Battlefield also allows customers to pay a little at a time, said Danielle Stoff, a sales associate for the store.

Baby News requires 25 percent of the total cost of the merchandise being laid away as a down payment, and consumers pay an additional 25 percent per month. A typical layaway is 90 days, Stoff said.

If customers cancel their order, Baby News will charge a 10 percent restocking fee but will refund the rest of the amount paid as long as someone calls and cancels the order. The store does not accept credit card payments over the phone, Stoff said.

There are several other stores in Springfield that offer layaway, from clothing boutiques to sports shops.