Who Does Layaway for Christmas? Retailers to Know

Layaway is a purchasing method where consumers can reserve merchandise by making an initial deposit and then pay the remaining balance through a series of installments over time. This approach allows individuals to secure an item without needing to pay the full price upfront. The retailer retains possession of the merchandise until all payments are completed.

The concept of layaway emerged during the Great Depression in the 1930s, providing a solution for consumers facing economic hardship who could not afford large purchases outright or access traditional credit. While its popularity waned with the widespread use of credit cards, layaway has seen renewed interest during periods of economic uncertainty. For holiday shoppers, layaway can be a practical tool for budgeting and managing expenses, enabling them to spread out the cost of gifts and ensure desired items are available without accumulating credit card debt.

Retailers Offering Christmas Layaway

While many major retailers have shifted away from traditional layaway programs in favor of “Buy Now, Pay Later” (BNPL) options, some stores continue to offer layaway, especially around the Christmas season. It is always advisable for consumers to verify the current layaway policies directly with their local stores, as offerings can change annually.

Walmart discontinued its traditional layaway program in 2020 and now partners with Affirm for a BNPL service. This alternative covers categories such as media, gaming, cameras, toys, sporting goods, home decor, and jewelry. In contrast, Kmart continues to provide layaway services both in-store and online, typically requiring a $10 deposit.

Sears maintains a layaway program in stores and online, often requiring a 10% deposit. Burlington Stores offer year-round layaway plans, generally with a 20% deposit and a small service fee. For military families, the Army & Air Force Exchange (AAFES) provides in-store layaway for purchases exceeding $25, often waiving fees during the holiday period for items like clothing, toys, and bikes.

Other retailers that have offered layaway include:
Fleet Farm: Offers holiday layaway in-store.
Buckle: Provides a layaway program with no interest or fees and a payment period of up to 60 days.
The Jewelry Exchange: Offers extended payment terms, allowing up to six months.
Big Lots: Offers layaway for specific merchandise, such as furniture, at select locations, usually with a 10% deposit.
Baby Depot: Offers a 30-day layaway plan with a minimum deposit and a service fee.
Marshalls and TJ Maxx: May offer layaway at participating stores for a limited duration, often excluding jewelry or marked-down items.

How Layaway Works

The process typically begins when a customer selects an item and expresses their intent to place it on layaway. The store then requires an initial down payment, which commonly ranges from 10% to 20% of the item’s total cost, though it can also be a fixed dollar amount.

Once the down payment is made, the retailer sets aside the chosen merchandise. The customer then makes regular installment payments according to a predetermined schedule, which can be weekly, bi-weekly, or monthly. Payment timelines usually span from a few weeks to several months, sometimes up to a year. Payments are typically made using cash, checks, or debit cards to avoid credit card debt.

A key feature of layaway is that the customer does not take possession of the item until the full purchase price has been paid. Unlike credit purchases, layaway plans generally do not charge interest on the outstanding balance. Additionally, layaway typically does not involve a credit check, making it an accessible option for individuals who may not qualify for traditional credit.

Customers usually have the option to cancel a layaway plan before completing all payments. Refund policies vary significantly among retailers, with some offering a full refund and others providing a partial refund or store credit after deducting service or cancellation fees. Retailers are required to disclose clear terms regarding the total cost, payment schedule, and any associated fees.

Important Details for Christmas Layaway

Christmas layaway programs often follow specific timelines and rules tailored to the holiday shopping season. Enrollment periods for holiday layaway typically begin in late summer or early fall, such as September or October, allowing customers several months to complete their payments before the December holidays. The final payment deadlines and merchandise pickup dates are usually set for mid-December, ranging from the 10th to the 24th, to ensure gifts are available before Christmas.

Common exclusions include gift cards, some electronics, food, formula, and occasionally clothing or special orders. Many retailers also have minimum purchase requirements, either per item (e.g., $10) or for the total order (e.g., $50 to $100). Some stores limit layaway to higher-priced items like jewelry or specific categories such as furniture.

Layaway plans involve specific fee structures. A non-refundable service or setup fee, typically $5 to $10, may be charged at initiation. While some retailers occasionally waive these fees, cancellation fees are common if a plan is terminated. Cancellation fees can range from a flat amount ($10 to $25) or a percentage of the item’s value or payments made, potentially up to 50%.

Missing a scheduled payment can result in the cancellation of the layaway plan, which may lead to the forfeiture of some or all payments made. Items placed on layaway are generally not eligible for sales tax exemptions during state-specific tax holidays, as the purchase is not finalized until the item is fully paid for and picked up. While layaway secures an item, customers should confirm the exact availability for pickup, as some items might require additional time for transfer from other locations after the final payment.