Kmart starts online layaway program

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Kmart launched an online layaway program today in an effort to help shoppers manage their holiday budgets.

The discounter said shoppers can now place items on layaway through the Kmart website and pick up their purchases at a local store.

Customers must make a down payment of $15 or 10%, whichever is greater, and pay a $5 initiation fee to start a layaway contract. Payments must be made biweekly online or at any register in the Kmart store where the order is held, and shoppers have eight weeks to pay for items in full.

Features of the online program include a layaway calculator, product availability information and reminder e-mails.

“We have an entire generation of customers who grew up shopping online,” said Mark Snyder, chief marketing officer of Kmart. “Launching online layaway at Kmart engages these customers by allowing them to spread their payments out over time and better plan their spending.”

Layaway made a big comeback during the holidays last year. Many retailers, including Kmart, heavily touted their programs.

According to Kmart, interest in layaway is even higher this year: The retailer said online trends showed that the word “layaway” had more than double the interest this August than in the same month last year.

Online layaway is also available at sister company Sears.

-- Andrea Chang

No need to go to the store any more to lay away items like this customer at the Kmart in Burbank did last fall. The company now has an online layaway program. (Rick Loomis / Los Angeles Times)