Kmart will be expanding its experimental lease-to-own program to all stores later this month, in time for the start of the holiday shopping season.
The program allows customers to take big-ticket items home (appliances, furniture, etc.) and use them while paying them off. It has been in test for a month in certain markets.
“[The] program will help ease some of the financial barriers our customers will face this holiday season,” said Jai Holtz, vp of financial services at Sears Holdings Corp. (Hoffman Estates, Ill.), Kmart’s parent company.
To qualify for the lease-to-own program, on items $150 or more, a customer must be at least 18 years old, earn a minimum of $1000 a month and supply a Social Security or tax identification number when applying. Customers make the first lease payment at the store, followed by monthly or bi-weekly payments made electronically. After five months, customers have the option to buy out the lease.
Earlier this month, Kmart announced it would open stores on Thanksgiving morning – a full 12 hours before several other retailers will be opening their doors – and stay open for 41 straight hours.