Retail chains are expanding layaway programs and urging customers to shop early and often for bargains. Wal-Mart started its layaway program 30 days earlier than last year and already has received orders for $400 million in layaway merchandise, executives said.
The Bentonville, Ark.-based retailer expanded the range of products available to be put on layaway this year as well, adding small home appliances and select sporting goods to the existing categories of electronics, small appliances, toys and jewelry.
Layaway programs staged a comeback during the recession and have held on as a way for retailers to jump-start consumer spending well before the traditional start of the holiday season on the day after Thanksgiving.
Trying to top its rivals, Kmart is promoting “free” layaway with no up-front fees starting in September and running through the holidays.
Kmart offers layaway year-round on most items, but waiving the up-front fee has prompted customers to start their holiday shopping early, said Tony Delmolino, manager of the Braintree store.
Categories such as toys and bicycles are among the top sellers, he said.
“Holiday shopping is picking up sooner than last year. They’re out looking and buying and putting on layaway sooner,” Delmolino said. “Customers love the fact that we recognize they have special concerns around the holiday season.”
Donna Hildebrandt of Braintree went to Kmart on Tuesday specifically with the intention of looking for good deals to put on layaway.
“I’m here just to see what they have. They have better deals than Wal-Mart,” Hildebrandt said.
Shereia Scott of Mattapan had come to pick up a 50-inch Panasonic TV that she ordered during a Columbus Day sale for $499.
Scott said she would be using layaway for holiday shopping as well.
“Absolutely. I’ll be back the first week in November,” she said.
T.J. Maxx and Marshall’s are offering layaway at select stores, spokeswoman Doreen Thompson said.
Stores will hold layaway for up to 30 days with a minimum down payment of $10 or 10 percent of the purchase price, whichever is greater. A $5 non-refundable fee is charged for each transaction.
Consumer watchdogs say layaway is generally a good deal, especially if the stores do not tack on any additional fees. They’re a good alternative to customers racking up charges on high-interest credit cards, said Deirdre Cummings, legislative director for MassPIRG.
Attorney General Martha Coakley’s office says shoppers should read the fine print on layaway programs and be on the lookout for hidden fees.
Consumers should make sure that the product being “laid away” is the same one selected by the buyer, said Jillian Fennemore, a spokeswoman for Coakley.