What Major Stores Offer Layaway Programs?

Layaway programs offer consumers a structured way to purchase items by making incremental payments over a period, rather than paying the full price upfront. This method allows individuals to reserve merchandise, which the retailer holds until the total cost is paid. Consumers often choose layaway to budget for larger purchases without incurring interest debt from credit cards or needing immediate full payment. It provides an option for securing desired items, particularly for those managing limited income or without access to traditional credit.

Common Features of Layaway Programs

Layaway programs begin with a down payment, typically 10% to 20% of the purchase price. This deposit secures the item. Consumers then follow a predetermined payment schedule, making regular installments—often weekly, bi-weekly, or monthly—over a set duration, generally 30 to 90 days.

Many layaway plans include a non-refundable service fee, usually $5 to $15. Cancellation policies often result in forfeiture of the service fee and sometimes a portion of payments, or store credit. Retailers specify eligible items, such as electronics, jewelry, and toys, while perishable goods, clearance items, and gift cards are excluded.

Major Retailers Offering Layaway

While traditional layaway programs have become less common, with many retailers shifting towards “Buy Now, Pay Later” (BNPL) alternatives, some major stores still offer it. Sears offers 8-week and 12-week layaway plans. The 8-week plan requires a $10 deposit and a $5 service fee; the 12-week plan, for purchases over $300, involves a $10 deposit and a $10 service fee.

Kmart maintains a layaway program, featuring 8-week and 12-week options with a $10 deposit. An 8-week plan incurs a $5 service fee, while a 12-week plan includes a $10 service fee; both plans have cancellation fees. Burlington provides year-round layaway, requiring a minimum deposit of $10 or 20% of the purchase price, plus a non-refundable $5 service fee. Items are held for 30 days, requiring payments every 14 days, and a $10 fee applies for cancellations or uncompleted plans.

Several jewelry retailers, including Jewelry Exchange and Reeds Jewelers, offer layaway plans, often with extended durations like six months. Jewelry Exchange requires a 25% deposit, with payments due every 30 days for six months. Reeds Jewelers has a 10% or $25 minimum deposit, requiring monthly payments for up to six months. GameStop offers a zero-fee layaway plan, requiring a $25 deposit to reserve items.

Major retailers like Walmart and Target have largely discontinued traditional layaway, instead offering BNPL services through partners such as Affirm. Marshalls and TJ Maxx focus on non-traditional payment solutions or have limited availability at select locations. Big Lots offers a “Price Hold” program or leasing for furniture.

Initiating and Completing a Layaway Plan

To begin a layaway plan, a customer selects an eligible item in-store and proceeds to the customer service desk. An initial down payment is made, and a formal layaway agreement outlining terms, payment schedule, and fees is signed. While most layaway transactions are initiated in person, some retailers may offer online options.

Subsequent payments can be made in-store at the customer service counter, through online payment portals, or over the phone. Consumers must adhere to the agreed-upon payment frequency, like weekly or bi-weekly installments, to keep the plan active. Once all scheduled payments are completed and the full price is paid, the customer can pick up their reserved item.

To cancel a layaway plan, contact the retailer to understand the process. Depending on the store’s policy, cancellation may involve returning the item to stock and refunding payments, often minus non-refundable service fees or a cancellation penalty. Retain all layaway receipts and the original agreement for reference.