Sears, Kmart Launch Online Product Lease Program
Sears and Kmart announced today that they are expanding their LEASE IT program online, thereby becoming the only national full-service retailer to offer a full assortment of products to lease both online and in-store. The LEASE IT payment option, originally launched in-store at Sears and Kmart in 2012, enables shoppers who don't qualify for or don't want to use traditional financing to purchase certain product. The LEASE IT program by WhyNotLeaseIt allows shoppers to select from a variety of products online and complete the transaction using leasing as an option. Eligible products and services are simply added to the cart and the leasing option can be selected when the transaction totals $199 or more.
Total Retail's Take: Given the dire financial situations of both brands, each owned by Sears Holdings Corp., it's wise that they would be making it as easy as possible for consumers to purchase from them. Sears and Kmart have traditionally fared well with lower-income shoppers, and this move is targeted to that demographic. Offering payment options for those without credit cards can help Sears and Kmart increase online conversion rates, generating much-needed revenue and potentially becoming a favored online shopping destination for this sizable demographic. Sears and Kmart will have competition, however. Several other retailers, including Amazon.com and Walmart, are going hard to acquire low-income shoppers.