Does Any Store Do Layaway? Here’s What to Know

Layaway serves as a payment arrangement where a customer places a deposit on an item, and the retailer holds that merchandise while the customer makes installment payments over time. This method allows individuals to secure a desired product without requiring immediate full payment. Its historical roots trace back to the Great Depression era, providing a means for consumers to acquire goods when cash was scarce. For those without access to credit or seeking to avoid debt, layaway offered a practical solution to budget for purchases. This payment option essentially functions as a saving plan until the total balance is settled.

Current Landscape of Layaway

While layaway once enjoyed widespread popularity, its prevalence has evolved. The rise of credit cards in the 1980s led to a decline in layaway offerings, as consumers gained immediate access to purchases through credit. However, economic challenges of the late 2000s prompted a resurgence, with some retailers reintroducing layaway programs to assist customers. Today, the availability of traditional layaway varies significantly, with many major retailers opting for “Buy Now, Pay Later” (BNPL) alternatives that allow immediate possession of the item.

Despite this shift, layaway remains an option at certain types of stores, particularly for specific merchandise categories. Department stores, discount retailers, jewelry stores, and furniture outlets are among those that may still offer layaway plans. These programs are often seasonal, with increased availability during holiday shopping periods, or are limited to higher-priced items like electronics or large appliances. Terms and availability can differ by retailer, store location, and time of year.

The Layaway Process

Engaging in a layaway purchase begins with selecting an item from a retailer’s eligible merchandise. Not all products may qualify for layaway, with some stores limiting it to specific departments or items above a certain price point. Once an item is chosen, the customer initiates the layaway agreement, often at a customer service desk. This step involves providing personal identification and reviewing the terms of the agreement.

The next step is making an initial down payment, which reserves the item. Following the deposit, the customer makes scheduled payments over a predetermined period. These payments are typically made directly to the retailer, either in-store or through an online portal if available. The item remains in the retailer’s possession until the full purchase price is paid. Once all payments are completed, the customer can pick up the item.

Key Agreement Details

When entering a layaway agreement, consumers should carefully review the specific terms. A down payment is almost universally required, commonly ranging from 10% to 25% of the item’s total purchase price, though some stores may specify a minimum dollar amount, such as $10 or $25. Its exact percentage can vary by retailer and product.

Payment schedules detail how frequently subsequent payments must be made. Common intervals include weekly, bi-weekly, or monthly payments, with the overall duration of the agreement ranging from 30 days to several months, or even up to 12 months for high-value items like jewelry. Many layaway programs involve service or setup fees, generally flat-rate charges ranging from $5 to $15, and these fees are often non-refundable.

Cancellation policies outline what occurs if a customer decides not to complete the purchase or misses payments. Retailers often impose cancellation fees, which can range from $10 to $20, and may also charge a restocking fee, sometimes calculated as a percentage of the item’s value, such as 15% to 20%. Depending on the store’s policy, payments made prior to cancellation might be refunded as cash, store credit, or in some cases, may be forfeited, particularly the service fee. Once a layaway item is fully paid for and picked up, its return policy may differ from standard purchases, potentially limiting returns to store credit or applying additional restocking charges.