8 Stores That Still Offer Layaway

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Table of Contents

What is Layaway?
How Layaway Works.
Stores That Offer Layaway.
What to Know Before You Put Something on Layaway.
Online Layaway: The Way of the Future?

It might not be a popular concept today, but layaway was pretty big once upon a time.

Layaway — a payment plan where a consumer puts down a deposit on an item to “lay it away” for future pickup — cropped up during the Great Depression. In an era when the economy was extremely tight, layaway made it possible for retailers to sell pricier products to cash-strapped customers.

Layaway programs started disappearing in the ‘80s when shoppers began to use credit cards to fund their big-ticket purchases. However, layaway had a resurgence around 2008, when the economic recession made people a little more cautious with their credit cards.

Now, you can find layaway at a number of major retailers — particularly around the holidays. But layaway isn’t the right financing option for everyone.

To help you decide whether this payment program is right for you, we’ve created a comprehensive guide to everything you need to know about layaway, including how it works, important considerations and eight stores that offer this type of financing in 2021.

What is Layaway?

Layaway is a payment system that lets you purchase an item over time in installments, interest-free. The store holds the item, typically in exchange for a deposit and small fee, until you finish making the installment payments. Once the item is paid off in full, you get to take your purchase home.

How Does Layaway Work?

Layaway programs may vary slightly from store to store, most follow the same fundamental structure. Here’s how layaway typically works:

Step 1: Choose an item – Choose an item(s) you want to put on layaway. Some stores restrict layaway to items over a certain price or within certain departments, such as electronics, furniture and jewelry.
Step 2: Put down a deposit and service fee – Some retailers require a certain percentage of the total purchase price, while others might allow you to choose the amount you want to put down.
Step 3: Make incremental payments – Different stores may offer different payment scheduling options and varying lengths for their layaway programs. Depending on the program and factors like the price of your item, you may be able to make payments on a weekly, biweekly or monthly basis. Most stores require layaway purchases to be paid off in full within a year.
Step 4: Bring home your item – After paying off your layaway purchase, you can pick it up at the store and bring it home.

Which Stores Offer Layaway in 2021?

These eight stores still offer layaway programs, although some of them only open layaway for the holidays.

Army & Air Force Exchange Service

Army & Air Force Exchange Service (AAFES) is a military retailer with store locations around the world. AAFES offers affordably priced brand-name apparel, home essentials, and other goodies in stores and online.

Does AAFES Offer Layaway?

Yes; AAFES allows in-store shoppers to put eligible purchases of $25 or more on layaway. The retailer offers a 30-day layaway program for apparel and accessories, a 60-day layaway program for all other merchandise (aside from jewelry) and a 120-day layaway program for jewelry. AAFES requires a 15% deposit on all layaway purchases, plus a service fee of $3 and a $5 cancellation fee.

AAFES Layaway Lowdown:

30-day layaway for all clothing, handbags and shoes.
60-day layaway for all other merchandise (except jewelry).
120-day layaway for fine jewelry.
In-store purchases only.
Service fee: $3.
Down payment: 15% purchase price .
Cancellation fee: $5.

See the full AAFES layaway policy.

Baby Depot

Image: BabyDepot.com

A subsidiary of Burlington Coat Factory, Baby Depot specializes in baby car seats, baby clothing, cribs, changing tables and much more.

Does Baby Depot Offer Layaway?

Yes, at participating locations. Participating Baby Depot stores offer a year-round 30-day in-store layaway program, requiring a minimum of $10 or 20% down — whichever is greater. Also, they also require a $5 service fee, plus a $10 cancellation fee.

Baby Depot Layaway Lowdown:

In-store purchases only
Service fee: $5 in most states ($1 in Maryland)
Down payment: $10 or 20%, whichever is greater
Cancellation fee: $10

See the full Baby Depot layaway policy.

Big Lots

A sprawling retail chain, Big Lots sells everything from electronics and toys to home goods and household essentials.

Does Big Lots Offer Layaway?

Yes, but only on furniture purchases at select locations. With the Big Lots “Price Hold” program, they typically ask for 10% of the purchase price as a deposit and will hold an item for 90 days. Some stores charge a non-refundable $5 fee, so be sure to ask. Keep in mind — terms may vary from store to store.

Another unique service offered at select stores is their “Progressive Leasing” program. They allow customers to take home large items, such as furniture, mattresses, grills and outdoor equipment, and pay over the course of an agreed-on lease period. You need to register for an account to participate, and payments are automatically withdrawn from your account.

The Big Lots Layaway Lowdown:

Price Hold:

For in-store furniture purchases at select locations.
Service fee: $0.
Down payment: 10% (some locations have a $5 fee).
Cancelation fee: $5 (varies by location).

Progressive Leasing:

$49 deposit.
90-day purchase option in most states (three-month purchase option in California).
Payments are withdrawn automatically from your account.

See the full Big Lots Price Hold and Progressive Leasing policies.

Burlington Coat Factory

In addition to coats, Burlington Coat Factory also offers men and women’s apparel, home goods, and beauty products.

Does Burlington Coat Factory Offer Layaway?

Yes; the Burlington Coat Factory layaway policy is identical to the policy of its subsidiary, Baby Depot. Participating Burlington Coat Factory locations offer a year-round 30-day in-store layaway program, requiring a minimum of $10 or 20% down — whichever is greater. Also, they also require a $5 service fee, plus a $10 cancellation fee.

Burlington Coat Factory Layaway Lowdown:

In-store purchases only.
Service fee: $5 in most states ($1 in Maryland).
Down payment: $10 or 20%, whichever is greater.
Cancellation fee: $10.

See the full Burlington Coat Factory layaway policy.

Hallmark Gold Crown

Hallmark Gold Crown is renowned for its greeting cards, but the retail chain also offers ornaments and gifts.

Does Hallmark Gold Crown Offer Layaway?

Yes, but only from July to December. The 90-day program requires a 20% deposit, in addition to contact info. Layaway policies vary by location, so be sure to confirm details with a sales associate.

Hallmark Gold Crown’s Layaway Lowdown:

Available July – December.
Service fee: Varies.
Down payment: 20%.

See the full Hallmark Gold Crown layaway policy.

Kmart

A subsidiary of Sears, Kmart sells everything from clothing and toys to appliances and sporting goods.

Does Kmart Offer Layaway?

Yes; Kmart lets you place select items on layaway in-store, online and via the app. The retailer offers two different layaway plans: an eight-week and a 12-week program. Note that the 12-week layaway program is available only in-store on items priced $300 or more.

Both the eight- and 12-week programs require you to put down a deposit of $10 and make payments every two weeks. Payments can be made in store or online. If you miss a layaway payment, you have a seven-day grace period before your contract is canceled.

The eight-week program has a $5 service fee and $10 cancellation fee, while the 12-week program has a $10 service fee and $20 cancellation fee.

The Kmart Layaway Lowdown:

8-week contract

Available for online, in-store and app purchases.
Down payment: $10.

Service fee: $5.
Cancellation fee: $10.
Payments: every two weeks (four payments total).

12-week contract

Available for in-store purchases of $300+.
Service fee: $10.
Down payment: $10.
Cancellation fee: $20.
Payments: every two weeks (six payments total).

See the full Kmart layaway program.

Sears

An international department store, Sears offers appliances, tools, mattresses, auto and more.

Does Sears Offer Layaway?

Yes; the Sears layaway policy is identical to the policy of its subsidiary, Kmart. Layaway at Sears lets you place select items on layaway in-store, online and via the app. Like Kmart, Sears offers two different layaway plans: an eight-week and a 12-week program. Note that the 12-week layaway program is only available in-store on items priced $300 or more.

Both the eight- and 12-week programs require you to put down a deposit of $10 and make payments every two weeks. Payments can be made in-store or online. If you miss a layaway payment, you have a 14-day grace period before your contract is canceled.

The eight-week program has a $5 service fee and $10 cancellation fee, while the 12-week program has a $10 service fee and $20 cancellation fee.

The Sears Layaway Lowdown:

8-week contract

Available for online, in-store and app purchases.
Down payment: $10.

Service fee: $5.
Cancellation fee: $10.
Payments: every two weeks (four payments total).

12-week contract

Available for in-store purchases of $300+.
Service fee: $10.
Down payment: $10.
Cancellation fee: $20.
Payments: every two weeks (six payments total).

See the full Sears layaway program.

Walmart

A big-box giant with stores around the world, Walmart hooks shoppers with everything from groceries to high-end laptops to affordable patio furniture.

Does Walmart Offer Layaway?

Yes, but typically only during the holiday season. Most Walmart locations offer layaway starting on Aug. 28 with final payment and pick up before Dec. 14. Layaway is available for electronics, automotive electronics, large furniture, fabrics, bedding, infant furniture, infant toys, toys, select sporting goods, small appliances and jewelry. Note that some stores offer layaway year-round on select jewelry.

Walmart layaway is available in stores only at designated layaway counters.

The Walmart Layaway Lowdown:

Service fee: $0.
Down payment: $10 or 10%, whichever is greater. Individual items must be $10 or more
Your minimum basket amount must be $50.
Cancellation fee: You’ll have to forfeit the down payment if the order isn’t paid in full and picked up on time.
Final payment and pickup must be made at the same store where layaway was initiated, or the order will be canceled.

See the full Walmart Layaway policy.

What to Know Before You Put Something on Layaway

Compared to other financing methods, layaway can be an appealing option because it doesn’t charge interest or impact your credit score. That said, layaway does come with its share of drawbacks. Here are six things to consider before putting something on layaway:

1. There Are (Usually) Fees Involved

Although layaway plans are interest-free, most retailers charge some or all of these fees:

Service fee: In addition to a down payment, most stores will charge a service fee (usually between $5 and $15) to cover the cost of storing your item and processing multiple payments.
Cancellation fee: If you cancel your plan or you cannot make all payments by a certain date, a retailer may charge you a cancellation fee. With some stores, this could be as much as $100.
Restocking fee: In addition to a cancellation fee, some stores might also require you to pay a restocking fee to cover the cost of returning a layaway item to the shelves.

These fees make layaway an impractical option for financing for smaller purchases — for instance, if you pay a $10 service fee to put a $40 blender on layaway, you’d be tacking a whopping 25% onto the price.

2. You (Usually) Need To Put Down a Deposit

Unlike credit card purchases, layaway financing typically requires that you put down a deposit for your item. The amount a store requires for a deposit may vary by store, but could be as much as 10% — a hefty chunk of change on larger purchases.

3. You Might Get Only Store Credit Back

Some retailers may refund your money in the form of original payment, but others might only offer store credit. It’s important to understand the details of each store’s layaway plan before entering into an agreement.

4. Layaway Requires Some Planning

Particularly if you need items by a certain date (say, the holidays or a birthday), layaway can require some planning ahead. For example, if you enter a 12-week layaway agreement on a Christmas present, you’ll need to place an item on layaway in early September at the latest.

5. You May Have To Comply With Strict Payment Terms

Many layaway plans include stringent payment terms. If you miss an installment — either because you forget or are unable to pay — you could lose your item. Before opting to use layaway, see if there’s a set payment schedule, or if the store has flexibility with the payoff structure. Plus, laway has some implications when it comes to shopping during tax-free weekends — and you’ll need to follow certain rules to ensure your layaway purchases get waived sales tax.

6. You Might Miss Out on a Sale.

After placing an item on layaway, there’s always a chance it could drop in price or go on sale — particularly around Thanksgiving season. Make sure you review the terms carefully to see if you are allowed to have a price adjustment for items on layaway.

Online Layaway: The Future of Laway?

Over the last couple of years, layaway has been making a comeback. This time, however, the time-honored payment plan has a fresh technological makeover.

Many retailers are partnering with online layaway service providers like Afterpay, QuadPay, and Klarna to let shoppers set up online installments plans. Different layaway companies offer different plans with different payment options. Here’s a quick rundown of what the key layaway apps offer:

Afterpay – Thousands of retailers, including Ulta, Urban Outfitters and Anthropologie use Afterpay, which lets customers set up layaway plans ranging from three to twelve months. Afterpay doesn’t charge any additional fees as long as you make your payments on time, and you are allowed to reschedule payments up to three times per year.
Klarna – Sephora, Finish Line, Macy’s and many other retailers use Klarna to hook their shoppers up with layaway options. Klarna offers different payment options, including a few with interest.
QuadPay – A few of the many retailers that use QuadPlay include Amazon, Old Navy and Target. QuadPay lets you pay off purchases over four installments scheduled over a six-week period.

One key difference between online and traditional layaway? Most online layaway companies let you receive your item immediately, instead of waiting until you complete your installment payments and pay off your entire purchase.

The post 8 Stores That Still Offer Layaway appeared first on The Real Deal by RetailMeNot.

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8 Stores That Still Offer Layaway

What is Layaway?

How Does Layaway Work?