Layaway Plans

Unlike Walmart, which did away with layaway in fall 2006, Kmart, which is owned by Sears, Roebuck and Co., has embraced the concept for more than 40 years. The company is even making layaway a major part of its 2008 holiday season advertising campaign, promoted by mascot Mr. Blue Light.

The layaway term is eight weeks. Buyers must put 10 percent of the purchase price down (minimum $10), plus pay a $5 nonrefundable service fee. There is also a $10 cancellation fee assessed if you decide not to buy the items after all. The payment schedule is biweekly and the payments are for 25 percent of the original balance due. “Price adjustments” are limited to one per layaway term, and prices may not be changed for holiday merchandise.

Holiday decorations must be paid for or returned to the sales floor by Dec. 5. Home electronics costing more than $200 can’t be placed on layaway after Nov. 16. No new items may be placed on layaway between Dec. 12, 2008 and Jan. 2, 2009.

Some items can’t be placed on layaway, such as personal computers, food, plants, magazines, prescription drugs, cell phones and processed photos or Portrait Studio pictures. (Summer 2010 update: While Kmart’s rules still exclude personal computers, Sears does not list those products on its list of items that can’t be placed on layaway. Shoppers are advised to look online and see if the product they want has a little “layaway” icon next to it.)

You can read the Kmart layaway policy in full at the store’s Web site.