Do Any Stores Still Offer Layaway Programs?

Layaway programs remain a payment option for consumers managing larger purchases without immediate full payment. This method allows individuals to reserve merchandise by making a deposit and subsequent installment payments over time. Unlike credit-based financing, layaway involves no interest charges, making it an appealing choice for budgeting or avoiding debt.

Retailers Offering Layaway

While less common than in previous decades, several retailers continue to offer layaway programs, particularly for specific categories of goods. Examples include Burlington Stores, which provides year-round layaway on most apparel and home goods. Sears and Kmart still offer layaway for various products both in-store and online.

Specialty retailers, such as jewelry stores and some furniture outlets, frequently maintain layaway options due to the higher price points of their merchandise. Stores like Baby Depot offer layaway for baby-related items, and some Hallmark Gold Crown stores provide this service for collectibles. GameStop offers layaway for gaming consoles and other higher-priced electronics. Consumers should inquire directly with individual stores, as policies can vary by location and change over time.

Understanding the Layaway Process

A layaway plan begins with selecting an eligible item and making an initial deposit. This deposit ranges from 10% to 25% of the item’s total purchase price. The store then sets the item aside, holding it for the customer until the full balance is paid.

Following the initial deposit, customers make regular, scheduled payments. These payments are structured weekly, bi-weekly, or monthly, depending on the retailer’s policy and payment term. Payments can be made in-store, and some retailers facilitate online payments. The holding period for items can range from 30 days to several months, with longer terms available for higher-value purchases. Once all payments are completed, the customer can take possession of the item.

Important Considerations for Layaway

Before entering a layaway agreement, consumers should review the associated fees and policies. Many retailers charge a non-refundable service or set-up fee, ranging from $5 to $10, to cover administrative and storage costs. Cancellation fees apply if a customer fails to complete payments or cancels the agreement; these can be a flat fee, such as $10 to $20, or a percentage of the item’s value, 5% to 15%. Some policies include restocking fees if the item is returned to inventory due to cancellation.

Cancellation policies vary, with some retailers offering a refund of payments made (minus fees) while others may only provide store credit. Consumers should understand the return policy for layaway items after final purchase, as these might differ from standard return policies and could involve store credit rather than cash refunds. While layaway locks in the price, confirm whether the price is guaranteed against future sales or changes. Alternative payment methods, such as Buy Now Pay Later (BNPL) services or credit cards, offer immediate possession of items but may involve interest charges or credit checks, which are absent with traditional layaway.