Kmart Rent-to-Own Turns $300 TV Into $415 Buy

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Nov. 13 (Bloomberg) -- Kmart is introducing a rent-to-own program charging the equivalent of 100-plus percent annual interest, a move into a business that has drawn criticism for hurting low-income consumers. Deirdre Bolton reports on Bloomberg Television's "In The Loop. (Source: Bloomberg)

Own program which some are saying is not a good thing.

But it depends.

It is not a bad deal.

If you buy a tv and you end up paying four to $50 for a tv that calls $300 a month that is good for the retailer.

-- end up buying $450 for a tv that cost $300, that is good for the retailer.

For a lot of the people, they are living week to week and they want the tv.

They are in fact willing to pay the premium on a longer term for the same object.

As far as sears, it is a good deal.

The contract office are not met.

People sign up and they cannot continue.

The object goes back through kmart or sears event quite friendly they can rent it out again or sell it as he use.

As use.

Is a good thing for the margins are not the best pr move.

Sears is bleeding money.

This part of their turnaround.

Is certainly is.

You hit at the knell on the buyout, around 2005, that is struggling.

A lot of people calling sears a melting ice cube and saying if it was not for the retail assets, basically we would be talking about a different story.

We talked about this earlier in the year.

They are letting about some the best known franchises internally.

And perhaps their auto this is.

-- business.

All of that is left are the real estate properties.

You have people saying that is not going to be a not and when it comes to competing with walmart and target.

What's thank you so much.

I wanted to bring in mark ellwood.

You've called this the anti- discount.

I think this a mold -- most idiotic thing you can do as a retailer today.

I am speechless.

But the white?

It is -- but

This text has been automatically generated. It may not be 100% accurate.

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