You make a car payment?
You make a house payment?
You make a furniture payment?
You make a credit card payment?
If you do-you're on a lay away plan of sorts, a pay as you go plan. Stop making payments on any of them and they go back into stock. If you don't want to use the installment plan---then pay cash for it on the spot or save your money till you have enough to pay for those things outright. Why's it different when talking about big ticket items instead of shoes, clothes and school supplies? Neither of them are yours till they are paid off. Hey, get you a low interest bearing account and save your money before buying that car or house. To some people, providing for their family's basic necessities is as hard as you saving until you have the entire amount for those big ticket items.
So, layaway plans charge interest?
Layaway plans allow you to take the merchandise away before its paid for?
If a store wants to offer that credit, its their right. It's also their right not to offer that credit. If a person is a credit risk and cannot finance the purchase externally, then why does it make sense for the store to do so, and end up with used merchandise on its hands?
I suspect few layaway plans operate the way you describe.
My mistake was in assuming you knew what the word "layaway" means.
If you think it means making loans to people who don't qualify for credit, it's no wonder you thought it would hurt poor people to eliminate layaways.