Do Any Stores Have Layaway Anymore?

Layaway is a traditional purchasing method where consumers secure items by making a deposit and paying the balance over time. This structured plan allows individuals to acquire merchandise without needing the full amount upfront.

The Current Presence of Layaway

Layaway has seen a significant decline in widespread use compared to its past prominence, particularly since the 1980s. The increased availability and adoption of credit cards offered consumers an alternative, allowing immediate possession of goods while paying later, often with interest. More recently, the rise of “Buy Now, Pay Later” (BNPL) services has further contributed to layaway’s reduced prevalence. Many major retailers, including those that once offered traditional layaway, have shifted to partnering with BNPL providers to offer installment payment options.

Despite this general decline, layaway still exists within certain retail niches and for specific purposes. While no longer a mainstream offering at most large department stores, some retailers continue to provide layaway plans, often catering to customers who prefer not to use credit or who may not qualify for it.

How Layaway Arrangements Function

A typical layaway plan begins when a customer selects an eligible item. The customer then makes an initial down payment, often a percentage of the total price (e.g., 10% to 25%) or a set dollar amount. This down payment secures the item, which the retailer holds until the full purchase price is paid.

Following the down payment, the customer makes regular installment payments over a predetermined period. These payments are typically scheduled weekly, bi-weekly, or monthly, according to the layaway agreement’s terms. Once all scheduled payments are completed and the balance reaches zero, the customer can pick up the item. Layaway plans typically do not involve credit checks or accrue interest on the outstanding balance.

Layaway plans often include service fees to cover administrative and storage costs. These fees are usually low and flat-rate, commonly ranging from $3 to $15. Cancellation policies vary, but if a customer fails to complete payments or decides to cancel, they may incur a cancellation or restocking fee, often around $10 to $20 or a small percentage of the item’s value. Depending on the retailer’s policy, any payments made, minus applicable fees, may be refunded in full, partially, or as store credit.

Types of Retailers Offering Layaway

Layaway remains available at specific types of retail establishments. Jewelry stores and furniture stores frequently offer layaway plans, especially for higher-priced items.

Certain discount department stores and specialized retailers also continue to provide layaway options. Examples include some locations of Burlington, Big Lots, Hallmark Gold Crown, and Buckle. Layaway programs are often more prevalent during peak shopping seasons, such as the holidays, to assist customers with gift purchases. Some online retailers offer layaway-like options, with items held at distribution centers rather than in physical store inventory. Given that policies can differ and change, it is advisable to confirm directly with a retailer regarding their current layaway offerings and terms.