Costco has become a go-to destination for savvy shoppers, and its apparel section is no exception. The warehouse giant’s model of offering limited quantities of high-quality clothing at aggressive price points creates a unique opportunity for deal hunters. Understanding how Costco’s apparel deals work, from pricing strategies to markdown timing, can help you consistently score significant savings on everything from casual wear to outerwear.

How Costco’s Apparel Pricing Model Works

Costco operates on a low-margin, high-volume business model. Unlike traditional department stores that mark up clothing 50% to 100% or more, Costco caps its markup on most items, including apparel, at roughly 14% to 15%. This base pricing strategy means that even before any markdowns, Costco’s clothing prices are often lower than competitors’ sale prices. However, the real savings come from understanding their inventory management and markdown system.

The .97 Cent Markdown Code

The most critical pricing signal at Costco is the price ending in .97. This indicates a store-level manager markdown, not a corporate price drop. When you see a pair of jeans priced at $14.97 instead of $19.99, that item has been discounted to clear inventory. These markdowns are applied to apparel that has been on the floor for a certain period, typically two to four weeks, or when stock is low and the store needs to make room for new seasonal items. The .97 markdown is often the deepest discount you will see on apparel before the item is gone for good.

The Asterisk (*) Indicator

Look closely at the price sign. If you see an asterisk in the upper right corner of the sign, that item is not being reordered. This is a strong signal that the current stock is all that remains. When combined with a .97 price, an asterisk means the item is on clearance and will not be restocked. For apparel, this often applies to seasonal items like winter coats or swimwear that are being phased out. If you see a jacket with an asterisk and a .97 price, buy it immediately if you want it—it will not be there next week.

The .00 Cent Price Ending

A price ending in .00 (e.g., $9.00) is another markdown indicator, though it typically represents a smaller discount than the .97 mark. These are often used for items that are being moved to make room for new stock but still have a reasonable quantity remaining. You will see this on basics like t-shirts or socks that are being rotated out for a new color or style. The .00 markdown is a good opportunity to stock up on staples, but the discount is usually not as aggressive as the .97 clearance.

Timing Your Apparel Purchases for Maximum Savings

Costco’s apparel inventory rotates frequently, and timing your visit can mean the difference between paying full price and getting a steal. The warehouse typically receives new clothing shipments weekly, with Tuesdays and Wednesdays being common restocking days. However, the best deals appear after the initial shipment has been on the floor for a while.

Seasonal Clearance Cycles

Costco follows a predictable seasonal calendar for apparel. Winter coats and heavy jackets hit the floor in late September or early October. By mid-December, the first markdowns (.97 prices) start appearing on these items. After Christmas, the clearance accelerates dramatically. You can often find high-end down jackets or parkas at 50% to 60% off the original Costco price during January. Similarly, summer apparel like swim trunks and shorts start arriving in March, with deep discounts appearing by July and August. The key is to shop the tail end of the season, not the beginning.

End-of-Month and Holiday Timing

Costco store managers have discretion to mark down items to meet monthly sales targets. The last week of the month is often a prime time to find additional .97 markdowns on apparel that has been sitting for a few weeks. Additionally, watch for markdowns just before major holidays. For example, in the week leading up to Memorial Day, you may see price drops on summer clothing, and before Black Friday, Costco often clears out older inventory to make room for holiday-specific items. These pre-holiday clearances can yield excellent deals on apparel that is still in season.

Strategies for Finding the Best Apparel Deals

Walking into a Costco without a plan can be overwhelming, especially in the apparel section where items are often stacked on tables or hung on simple racks. A systematic approach will help you identify the best deals quickly.

Scan the Center Aisles First

Costco places its highest-margin and newest apparel in the center aisles near the front of the store. These are typically full-price items. Instead, head to the back corners and the end caps of the apparel section. Clearance and markdown items are often consolidated on a single table or rack near the back wall. Look for yellow or orange price signs, which indicate a markdown. Do not waste time browsing the main displays if your goal is to find deals—focus on the clearance zones.

Check the Price Sign Details

Every apparel price sign at Costco contains three critical pieces of information: the item name, the price, and the item number. The item number is a six- or seven-digit code. If you find an item you like but are unsure about the price, write down the item number and check it against the price check scanners located throughout the store. More importantly, look for the price ending and the asterisk. A quick scan of the sign will tell you if the item is on clearance (.97), a manager special (.00), or full price (.99).

Inspect the Merchandise Carefully

Costco’s return policy on apparel is generous—unlimited returns on most clothing items—but that does not mean you should skip the inspection. Because items are often handled by multiple shoppers and stacked on tables, you may find defects, stains, or missing tags. Check seams, zippers, and buttons. For outerwear, verify that all pockets are intact and that the lining is not torn. If you find a defect on a clearance item, you can ask a manager for an additional discount, but be prepared for them to say no. It is better to catch the issue before you buy than to deal with a return later.

Common Mistakes Shoppers Make with Costco Apparel

Even experienced deal hunters can fall into traps when shopping for clothes at Costco. Avoiding these common errors will save you money and frustration.

Buying for Fit Without Trying On

Costco does not have fitting rooms for apparel. This is the single biggest challenge for clothing shoppers. Sizes can vary significantly between brands, especially with the rotating mix of name-brand and Kirkland Signature items. A size large in one brand may fit like a medium in another. The best strategy is to know your measurements (chest, waist, inseam) and bring a tape measure to the store. Compare the garment’s measurements to your own. If you are unsure, buy two sizes and return the one that does not fit. Costco’s return policy makes this a low-risk approach, but it requires an extra trip.

Ignoring Fabric Quality and Care Instructions

Costco is known for offering good quality, but not all apparel is created equal. Check the fabric content label. A 100% cotton t-shirt at $8.99 is a great deal, but a polyester-blend shirt at the same price may pill or fade after a few washes. Look for higher thread counts in dress shirts and heavier weight fabrics in casual wear. Also, check the care instructions. Some Costco apparel is dry clean only, which can eat into your savings. Machine washable items are almost always a better value for everyday wear.

Overlooking the Kirkland Signature Brand

Many shoppers gravitate toward name brands like Nike, Levi’s, or Columbia, but Kirkland Signature apparel often offers the best value. Kirkland items are typically made in the same factories as premium brands but sold at a lower price point. For example, Kirkland Signature men’s dress shirts are often comparable to brands selling for three times the price. Do not dismiss the store brand—it is frequently the best deal in the apparel section, especially for basics like t-shirts, socks, and underwear.

When to Call a Senior Tech or Inspector

While shopping for apparel deals at Costco does not involve technical equipment, there are situations where you may need to consult a more experienced shopper or a store manager. If you are unsure about a price or a markdown code, ask a floor employee. They can verify whether an item is on clearance or if a further markdown is coming. If you notice a pattern of incorrect pricing—for example, a sign showing .97 but the item scanning at full price—report it to a manager. Costco honors the displayed price, but you need to catch the error at checkout.

For high-value items like leather jackets or premium outerwear, consider asking a manager if the item is likely to be marked down further. They cannot guarantee future pricing, but they can tell you if the item has an asterisk (not being reordered) or if it has been on the floor for an extended period. This information helps you decide whether to buy now or wait for a deeper discount. If you are shopping for a specific item for a special occasion and the fit is critical, do not rely on guesswork. Buy the item, try it on at home, and return it if necessary. This is the safest approach when fitting rooms are unavailable.

Tools and Resources for the Savvy Costco Apparel Shopper

Arming yourself with the right tools can streamline your deal-hunting process and ensure you never miss a markdown.

  • Price Check App: Use the Costco app on your smartphone. It includes a barcode scanner that lets you check prices and item numbers in real time. This is faster than walking to a price check kiosk.
  • Measuring Tape: Keep a small fabric measuring tape in your car or bag. Knowing your chest, waist, and inseam measurements allows you to compare against garment tags without guessing.
  • Notepad or Notes App: Write down item numbers of apparel you are interested in. Check back on subsequent visits to see if the price has dropped. This is especially useful for seasonal items that may take weeks to hit clearance.
  • Return Receipt: Always keep your receipt for apparel purchases. Costco can look up your purchase history by membership number, but having the receipt speeds up returns and exchanges.
  • Social Media Groups: Join Costco-focused deal forums or Facebook groups. Members often post photos of current markdowns at their local warehouses, giving you a heads-up on what to look for in your area.

Practical Takeaway

Mastering Costco apparel deals comes down to understanding the pricing codes, timing your visits, and inspecting items carefully. Focus on .97 markdowns combined with asterisks for the deepest discounts. Shop the clearance zones first, especially at the end of a season. Know your measurements to avoid fit issues, and do not overlook Kirkland Signature for unbeatable value on basics. With a systematic approach, you can consistently build a high-quality wardrobe at a fraction of retail prices.