Does Any Store Still Have a Layaway Program?

Layaway is a payment arrangement allowing consumers to secure merchandise by making a series of payments over time, with the store retaining the item until the full amount is paid. It serves as a budgeting tool, particularly for those who prefer to avoid debt or may not qualify for traditional credit options.

Where Layaway is Still Available

While less prevalent than in past decades, layaway programs are still offered by various retailers, particularly during specific seasons or for certain types of merchandise. Smaller, independent shops, along with jewelry and furniture stores, frequently maintain layaway options year-round.

Some larger retail chains also provide layaway, though availability can be seasonal, often concentrated around holiday shopping periods. Kmart and Sears offer layaway plans, with terms varying by purchase amount and store policy. Other examples include Baby Depot, Burlington, and Buckle.

Even online giants like Amazon have offered a layaway option for select products. However, some major retailers, like Walmart, have discontinued their traditional layaway programs in favor of “buy now, pay later” financing alternatives.

How Layaway Programs Generally Work

Engaging in a layaway plan begins with selecting the item a consumer wishes to purchase. A down payment is required to initiate the agreement and reserve the merchandise. This initial deposit usually ranges from 10% to 20% of the item’s total price, or a set minimum dollar amount, such as $10 or $25. After the down payment, the store holds the item, removing it from sales inventory.

A payment schedule is then established, outlining the frequency and amount of subsequent payments. These payments are commonly made on a weekly, bi-weekly, or monthly basis over a predetermined period, which can range from 30 days to 12 weeks or more, depending on the retailer and the item’s value. Consumers continue to make these installment payments until the full balance of the purchase is satisfied. Once the total amount is paid, the customer can then take possession of the reserved item.

Understanding Layaway Terms and Conditions

Layaway plans come with specific terms and conditions that consumers should understand before entering an agreement. Many retailers charge a non-refundable service fee to cover the administrative and storage costs associated with holding the merchandise. This fee is often a flat rate, typically ranging from $5 to $10, and is paid at the time of the initial deposit. Some plans may also involve cancellation fees if the consumer decides not to complete the purchase.

Cancellation policies vary, but if a layaway is terminated, the consumer may forfeit the initial service fee and a portion or all of the payments made. Refunds for canceled layaways might be issued as store credit rather than a cash refund, depending on the retailer’s policy. Additionally, not all items are eligible for layaway; retailers often exclude perishable goods, clearance items, or gift cards, while focusing on higher-priced items like electronics or furniture. Consumers do not undergo a credit check for layaway plans, and the payments do not directly impact credit scores.