Who Offers Layaway? Retailers With Payment Plans

Layaway allows consumers to purchase items by making a series of payments over an agreed-upon period. This payment plan enables individuals to reserve merchandise, which the retailer holds until the full purchase price is paid. It functions as a budgeting tool, helping consumers acquire goods without needing the entire sum upfront or incurring interest charges.

Retailers That Offer Layaway

While layaway was once common, its availability has shifted, with many major retailers now favoring alternative payment methods. However, some stores continue to provide traditional layaway programs, particularly for specific merchandise or during certain seasons. General merchandise stores, for example, may offer layaway for electronics, toys, and apparel, with plans typically ranging from 8 to 12 weeks. Burlington maintains a year-round layaway program, often requiring a down payment and bi-weekly payments for a 30-day hold period.

Beyond these, specialized retailers frequently offer layaway, especially for higher-priced goods. Jewelry stores commonly provide layaway plans, allowing customers to pay for items like engagement rings or watches in installments. Some furniture stores may also offer layaway for larger pieces in select locations. The availability of layaway can vary by store location, specific items, and promotional periods, such as the holiday shopping season.

How Layaway Programs Operate

When a consumer opts for a layaway program, the process begins with selecting an eligible item and making an initial down payment. This down payment typically ranges from 10% to 25% of the item’s total price, though it can vary by retailer. Some retailers may also charge a non-refundable service fee, usually a small flat fee between $5 and $10. The retailer holds the chosen merchandise while payments are made.

After the initial payment, the customer agrees to a structured payment schedule, making regular installments over a specified period. Payments might be required weekly, bi-weekly, or monthly, depending on the retailer’s policy and the duration of the layaway contract. Common layaway terms extend from a few weeks, such as 30 days, up to several months. If a customer cancels the layaway or fails to make payments, the retailer may charge a cancellation or restocking fee, which can range from $10 to $20 or a percentage of the item’s value. The item is then returned to stock.

Alternative Payment Solutions

When layaway is not available or does not suit a consumer’s needs, several other payment solutions can help manage larger purchases. One option is in-store financing, where retailers partner with financial institutions to offer installment plans. Unlike layaway, in-store financing typically allows the customer to take possession of the item immediately. However, these plans often involve credit checks and may accrue interest, especially if the balance is not paid within a promotional period.

Another popular alternative is “buy now, pay later” (BNPL) services, offered by providers like Afterpay or Klarna. These services also break down purchases into smaller, interest-free installments, and generally allow the customer to receive the item upfront. While many BNPL plans are interest-free if payments are made on time, some may involve interest or late fees if terms are not met. Credit checks can vary from soft inquiries to more extensive evaluations.

Consumers can also use credit cards for immediate purchases, which offers convenience and potential rewards, but carries the risk of high interest charges if balances are carried over time. Alternatively, saving money until the full purchase price is accumulated avoids any fees or interest, providing a debt-free way to acquire desired items.