The practice of layaway purchasing is returning to the US retail scene as consumers struggling with debt and higher living costs seek out new ways to pay for goods.

With the holiday shopping season approaching, a number of retailers offering layaway have seen increasing demand for the schemes among consumers.

Layaway is a payment method that allows consumers to keep their purchases in storage and pay for them in installments, receiving the items only once the balance is paid off.

Kmart has launched an advertising campaign to promote its layaway service ahead of Christmas, confident that consumers will take up its offer.

Mark Snyder, chief marketing officer at the department store chain, said: "It is all about our shoppers being able to put the hottest gifts that their family wants on layaway. They can get them early and still get them out for Christmas."

Meanwhile, Mal-Mart said it has witnessed a shift in consumer shopping habits, claiming that increasing numbers of people are living from pay check to pay check and buying essentials at the beginning of the month.

-----------------------------------------------------------------------