Do Any Stores Still Have Layaway Programs?

Layaway programs allow consumers to secure desired merchandise by making incremental payments over time. This financial arrangement serves as a budgeting tool, enabling individuals to acquire items without immediately depleting cash reserves or incurring traditional debt. The retailer holds the item until the total cost is covered.

Understanding Layaway

Layaway operates as a purchasing method where a consumer places a down payment on an item, and the retailer holds the merchandise while the customer makes a series of installment payments. Unlike a credit purchase, the store retains possession of the goods until the full balance is paid. This structure means no interest accrues on the outstanding balance, differentiating it from traditional credit cards or loans.

Layaway does not require a credit check, making it accessible to individuals without an established credit history or those seeking to avoid new debt. Payments made through a layaway plan do not impact an individual’s credit score, as the arrangement is not reported to credit bureaus. The concept centers on a savings plan for a specific item.

Stores Offering Layaway

While less common than in previous decades, some retailers continue to offer layaway programs, particularly for certain types of merchandise or during specific seasons. Burlington Stores provides layaway services year-round.

Various specialty stores, especially those selling jewelry, furniture, or electronics, may also offer layaway plans. Examples include Hallmark Gold Crown Stores, Army & Air Force Exchange (AAFES), Baby Depot, and select Big Lots locations. Some large general merchandise retailers, such as Walmart, have transitioned away from traditional layaway, instead partnering with “buy now, pay later” (BNPL) services. To determine if a specific store offers layaway, consumers should check the retailer’s official website, contact customer service, or inquire directly in-store.

Navigating Layaway Programs

Once a store offering layaway is identified, understanding the program’s mechanics is important. Initiating a layaway requires a down payment, which can range from a nominal amount like $10 or $15, or a percentage of the purchase price, commonly between 10% and 25%. The retailer then sets a payment schedule, specifying how frequently and in what amounts the remaining balance must be paid. Schedules vary, often ranging from 30 days to 8 or 12 weeks, with payments expected weekly, bi-weekly, or monthly.

Most layaway programs include service fees, typically between $3 and $15, to cover holding and processing costs. If a customer misses payments or cancels, cancellation fees are applied, ranging from $5 to $25, or up to 10% or 25% of the item’s value. Any money paid, minus applicable service and cancellation fees, may be refunded as store credit or a partial cash refund, depending on the retailer’s policy. The merchandise is released once all payments, including any fees, are settled. Some items may be ineligible for layaway, such as marked-down goods, food items, or those below a certain price threshold.