Does Home Depot Offer Layaway in 2023?
No, unfortunately Home Depot does not offer layaway programs in their stores or online as of 2023. Home Depot discontinued their layaway service back in 2006.
Keep reading this detailed guide to learn why Home Depot got rid of layaway, what payment options they offer instead, whether other major retailers still provide layaway, and alternative financing methods you can use to pay over time.
Table of Contents
- Why Home Depot Doesn‘t Offer Layaway Anymore
- The Downsides of Layaway for Retailers
- Home Depot‘s Current Flexible Payment Options
- Major Retailers That Still Offer Layaway
- Creative Ways To Pay Over Time Without Layaway
- The Bottom Line: No More Layaway at Home Depot
Why Home Depot Doesn‘t Offer Layaway Anymore
Home Depot used to let customers utilize layaway, especially for holiday purchases. But back in 2006, they quietly ended their layaway program in all stores and online.
So why did Home Depot get rid of layaway after having it for years? There are a few key reasons:
Labor costs – Layaway requires significant employee hours to track payments, update layaway accounts, call customers about balances, process cancellations, and complete transactions. This overhead cost likely outweighed layaway revenue.
Inventory issues – Items placed on layaway occupy stockroom space and sit there unsold. This takes away inventory space from other merchandise and potentially lost sales.
High cancellation rates – Department of Commerce data shows 65% of layaway transactions are cancelled. The retailer invests substantial labor but the item never sells.
Alternative financing options – Programs like Home Depot‘s 12-months same-as-cash store credit card presented better alternatives with higher likelihood of purchase.
In short, the high costs and operational headaches of layaway outweighed the benefits for a major retailer like Home Depot. More efficient financing options proved better complements to their business model.
The Downsides of Layaway for Retailers
To understand why layaway fell out of favor with so many major retailers, it helps to examine the program‘s drawbacks from the merchant perspective:
Revenue Impact
- Layaway reduces income potential by holding items off the sales floor for extended periods
- Layaway cancellation rates ranging from 50-65% represent lost sales
- Labor costs eat into profits from layaway transactions
Inventory Management
- Items on layaway occupy stockroom space and cannot be sold to other customers
- Tracking layaway inventory adds labor hours and overhead expenses
- Cancelled layaway items must be returned to the sales floor
Administrative Burden
- Collecting deposits and monitoring payment plans is time-intensive
- Following up on delinquent accounts increases labor costs
- Processing cancellations and refunds adds more workload
Profitability Issues
- The average layaway item is $100-$200, making it a low dollar basket sale
- Small ticket sizes combined with high cancellation rates limit profit potential
- Layaway fees often don‘t offset the costs of offering the program
Given these drawbacks, it‘s understandable why Home Depot eliminated layaway in favor of alternative financing programs that drive higher sales and profits.
Home Depot‘s Current Flexible Payment Options
Rather than old-fashioned layaway, Home Depot promotes several financing programs to help DIYers and pros pay for big purchases over time.
Home Depot Credit Cards
| Card Name | Key Features |
|---|---|
| Home Depot Consumer Card | – 6 to 24 months special financing with no interest – 5% rewards on Home Depot purchases |
| Home Depot Project Loan Card | – Financing up to $55,000 for home improvements – Fixed monthly repayment terms from 2-84 months |
The Home Depot credit cards generated $1.2 billion in revenue for the company in 2021. Over 6 million households have a Home Depot credit card.
Buy Now, Pay Later Services
Home Depot offers Klarna and QuadPay installment loans at checkout. You get the items immediately and repay the loan in 4 interest-free payments over 6-8 weeks.
Leasing Program
This program lets you lease appliances, furniture, electronics, computers, and more from Home Depot. Make monthly payments during 12, 24, or 36-month terms. Purchase or return the items afterwards.
Business Credit Cards
Special credit cards are available for contractors spending over $5,000 annually at Home Depot. Business cards include:
- Home Depot Commercial Card
- Home Depot Commercial Account
- Home Depot Pro Card
So in summary, Home Depot provides a variety of financing programs beyond old layaway plans to help DIYers and professionals complete big purchases.
Major Retailers That Still Offer Layaway in 2023
While Home Depot no longer provides layaway, some other major retailers continue to offer traditional layaway programs:
| Retailer | Layaway Details |
|---|---|
| Walmart | – Only offered seasonally from mid-Sept to mid-Dec for holiday shopping – For items $50-$500 in jewelry, electronics, toys, appliances |
| BJ‘s Wholesale Club | – Available year-round on most items except TVs, laptops, phones, jewelry – Requires 20% down payment |
| Big Lots | – Offered year-round for purchases $150+ – 60 days to finish payments |
| Kmart | – Available year-round excluding fine jewelry – For purchases $50+ with $10 down payment |
| Sears | – Offered year-round for items $50+ – 12 week payment term |
| TJ Maxx/Marshalls | – Layaway from mid-Sept to mid-Dec – For items $50+ with $10 open fee |
However, national retailers offering layaway has declined over the past 10-15 years as alternative financing options gain popularity.
Creative Ways to Pay Over Time Without Layaway
With old-fashioned layaway harder to find, what other options allow you to break up big purchases into more affordable monthly payments?
Retailer credit cards – Special financing offers like Home Depot‘s cards allow 0% interest if paid in full within the promo timeframe.
Buy now, pay later plans – BNPL services like Affirm, Afterpay, Klarna, and QuadPay let you split purchases into 4 or more interest-free installments.
Personal loans – Borrow a lump sum from a bank, credit union, or online lender, and make fixed monthly payments over 1 to 7 years typically.
Balance transfer credit cards – Shift existing credit card balances to a 0% intro APR card to save on interest for 12-21 months.
Home improvement loans – Borrow larger amounts over longer repayment terms to finance home renovations and improvement projects.
Flexible financing options like these can help replicate layaway. The strategy is splitting payments over time while minimizing interest costs.
The Bottom Line: No More Layaway at Home Depot
At one time, Home Depot did offer customers the option to use layaway, especially around the holidays. But in 2006, amid rising costs and operational challenges, they eliminated layaway from all stores and HomeDepot.com.
Rather than traditional layaway, Home Depot now provides the following payment programs:
- Special financing offers on Home Depot credit cards
- Buy now, pay later installment loans through Klarna and QuadPay
- A leasing program for appliances, furniture, electronics, and more
A small number of retailers like Walmart, Kmart, and BJ‘s still maintain layaway programs, mainly targeted for holiday shopping. But flexible alternative financing options have largely replaced layaway across most major national retail chains.
So while you can no longer get layaway at Home Depot, you have many other ways to pay over time. This includes promotional financing, buy now pay later plans, personal loans, balance transfer cards, and home improvement loans. With a little creativity, you can break up big purchases into more affordable monthly payments, even without old-fashioned layaway.
