Kmart is offering cash-strapped consumers some relief this holiday season.
The Illinois-based retailer announced this week that its No Money Down Layaway plan will return for a second year, complimented by a No Money Down Leasing program.
The layaway program is being offered through Nov. 29, which includes Thanksgiving Day and Black Friday. It allows shoppers to place in-demand items like toys, consumers electronics, clothing and home products on layaway with no money down for in-store purchases and only a penny down when merchandise is bought online.
Consumers who use Kmart’s leasing program can choose any item that meets the minimum purchase requirement with no down payment. That applies to toys, home electronics and appliances, among other items.
Shoppers who use the “rent to own” leasing plan can take the product home after making an initial payment when they buy it. And by making additional minimum payments they can keep the product for whatever time period they want.
They then have the option of extending the lease with bi-weekly payments for five months or using an early-purchase option, which allows them to pay it off in 30, 60 or 90 days for slightly more than the lease cost.
Kmart is also offering $10 off for members (Kmart shoppers who have registered to receive discounts) who make a footwear, clothing or jewelry purchase of $50 or more on layaway. That offer will run Oct. 4 through Oct. 17.
The holiday shopping season is already well underway for millions of Americans, according to a new survey by CreditCards.com.
The survey shows that about one in seven American adults (14 percent) had already started their holiday shopping by the Labor Day weekend. That means that about 32 million American adults started crossing gifts off their holiday shopping list before many kids around the country even finished their summer break.
“If you’re on a budget, getting an early start on holiday shopping can be a great idea,” said Matt Schulz, a senior industry analyst at CreditCards.com. “It can make it easier to take advantage of layaway programs, which can allow you to make bigger purchases without worrying about running up credit card debt.”
Fifteen percent of Americans surveyed by CreditCards.com said they plan to start shopping earlier this year compared to last year. And more than a fifth (22 percent) of shoppers ages 18 to 29 said they are more likely to start their holiday shopping earlier this year than last year.
“Most holiday shoppers we surveyed said they’d finish their shopping sometime in December, including 20 percent who said they’d finish by Christmas Eve,” Schulz said. “I do think people are generally feeling better this year than in recent years. Credit card spending is up, but people seem to be keeping their debts under control, given that delinquencies are still around historic lows. And we’ve seen a slight increase in the number of people paying their balances in full each month. I think all of that seems to bode well for a good holiday season for many folks.”
Kmart is a wholly owned subsidiary of Sears Holdings Corp. Jai Holtz, Sears Holdings’ vice president and general manager of financial services, said the two companies have extended their ease-of-shopping efforts to help consumers on a tight budget.
“Kmart and Sears are the only general merchandise retailers where layaway is available nationwide, both online and in-store with no minimum purchase, year-round,” Holtz said in a statement. “Plus, we let our members put items from the categories they care about most on layaway — this includes toys and apparel.”