Toys R Us offers free layaway

  @AaronSmithCNN October 25, 2012: 10:53 AM ET
toys r us holiday sales

Toys R Us is offering free layaway ahead of this year's holiday shopping season.


Retailer Toys R Us is offering free layaway, in an effort to spur spending ahead of the holiday shopping season.

Toys R Us said it is waiving the upfront fees that it usually applies to layaway purchases. The company announced the deal on Monday and said that it will last through Oct. 31. Layaway will still be available after that date, but with a $5 service fee.

The free layaway applies to a variety of its products, including toys, video games and swing sets. But the company said the deal does not apply to clothing, drinks, diapers, batteries and "holiday-related items."

The deal will allow shoppers to buy products without having to pay the total price up front. Toys R Us allows shoppers to secure the product by making a 20% down payment, so long as they pay 50% of the total price within 45 days and pay for the product in full by Dec. 16.

Related: Best gadgets coming this fall

Toys R Us has faced tough competition from mass merchandise retailers like Wal-Mart (WMT, Fortune 500) and Target (TGT, Fortune 500). Retailers are bracing for another holiday shopping season amidst a weak economy and high unemployment.

Layaway plans have become more popular lately due to uncertainty in the economy. Earlier this summer, Sears (SHLD, Fortune 500) announced that it was offering vacation packages on layaway through its site. To top of page

Join the Conversation
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.