NEW YORK (CNNMoney.com) -- Wal-Mart Stores, Inc. said Thursday that, because of declining use and increasing costs, the retail giant will phase out its layaway program.

Customers will have until November 19 to place items in layaway for this holiday season and merchandise must be picked up by December 8.

"Demand for layaway service has declined steadily as consumers turn to other options, such as online shopping, gift cards and no-cost credit alternatives," Pat Curran, executive vice president, store operations, said in a statement.

"To assist our customers, we are offering one last opportunity to use layaway service this Christmas season."

The company will still offer customers other payment options, such as zero interest for six and 12 months for current Wal-Mart cardholders.

Shares of Wal-Mart (Charts) edged higher on the New York Stock Exchange Thursday afternoon. Rivals Costco (Charts) and Target (Charts) were also up slightly.

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