Does Anyone Do Layaway? How It Works & Where to Find It

Layaway, a payment method allowing consumers to reserve an item by making incremental payments over time, remains a relevant option in today’s retail landscape. This traditional approach offers a distinct alternative to immediate purchase methods. Understanding how layaway works and where to find it is important for financial planning.

Layaway’s Presence Today

While layaway was once common, its prevalence has shifted. The rise of credit cards in the 1980s led to a decline in its use, as consumers gained the ability to take items home immediately. However, layaway experienced a resurgence around the 2008 financial crisis and continues to exist today, particularly for certain goods or during specific shopping seasons like the holidays.

Many major retailers, such as Walmart, have transitioned away from traditional layaway programs in favor of “buy now, pay later” (BNPL) options through third-party providers. This trend reflects a broader consumer preference for immediate possession. Despite this shift, layaway maintains a niche, especially in categories like jewelry and furniture, and at discount department stores. It provides a payment solution for those who prefer to avoid credit or manage spending in a structured way.

How Layaway Programs Function

A typical layaway program involves a clear set of steps and terms. A consumer selects an item and places it on layaway at the retailer’s counter. An initial down payment is required, commonly 10% to 20% of the price, or a set dollar amount like $10 or $15. Some retailers may also charge a non-refundable service fee, typically $5 to $10, when the contract is initiated.

The retailer holds the item while the consumer makes regular installment payments over a specified period. Payment schedules vary, with common durations being 30, 60, or 90 days, and payments are often required weekly, bi-weekly, or monthly. The customer does not receive the item until the full purchase price, including any fees, has been paid. If a consumer fails to make payments or cancels, the item is returned to stock, and a cancellation or restocking fee, often $10 to $20, may be charged, with some or all previous payments forfeited depending on store policy.

Why Consumers Choose Layaway

Consumers opt for layaway for several financial and practical reasons. One primary motivation is the ability to budget for larger purchases without needing to pay the full amount upfront. This allows individuals to secure an item they desire while spreading out the cost over time. Layaway also provides an alternative to incurring credit card debt, as it typically does not involve interest charges, unlike credit cards which can carry high annual percentage rates (APRs).

Another reason is to secure a specific item, especially popular or limited-stock merchandise, preventing it from selling out. This is advantageous during peak shopping seasons, such as the holidays. Layaway can also function as a forced savings plan, helping individuals set aside funds for a purchase without temptation. It serves as a viable option for consumers without access to traditional credit or who prefer not to use it, as layaway programs do not require a credit check.

Identifying Retailers Offering Layaway

While many retailers have shifted away from traditional layaway, some still provide this service, particularly in certain product categories. Discount department stores like Burlington and Kmart are known for offering layaway, often year-round. Some jewelry stores and furniture stores also commonly feature layaway plans, recognizing their higher price points.

To determine if a retailer offers layaway, consumers can check the retailer’s official website, typically under “payment options” or “customer service.” Directly contacting the store’s customer service by phone or in person can also provide up-to-date information. During certain times of the year, especially leading up to holiday seasons, physical stores may display signage indicating layaway availability.