Costco is a retail giant known for its bulk pricing and rotating inventory, but for the savvy shopper, it is also a goldmine for apparel deals. Understanding how Costco’s sales cycles, pricing codes, and clearance strategies work can mean the difference between paying full retail and scoring high-quality clothing for a fraction of the cost. This guide breaks down the mechanics of Costco apparel deals, from the warehouse floor to the online clearance rack, so you can shop with confidence and maximize every dollar.

How Costco’s Apparel Pricing Model Works

Costco operates on a low-margin, high-volume business model. This directly impacts how they price apparel. Unlike traditional department stores that mark up clothing 50-100% or more, Costco caps its markup on most items, including apparel, at roughly 14-15% over wholesale. This means the starting price is often lower than competitors, but the real savings come from understanding their markdown system.

Every apparel item in a Costco warehouse has a price tag with a specific code. These codes are not random; they signal the item’s status in the inventory lifecycle. The most important code to recognize is the price ending. Items ending in .97 are manager markdowns, typically clearance items that need to move quickly. Items ending in .00 are usually final clearance, often priced at the store’s cost or below. Items ending in .88 or .49 are typically special buys or promotional discounts, but not as deep as the .97 or .00 codes. Learning to scan for these endings is the first step to identifying true apparel deals.

Decoding Costco’s Apparel Sales Cycles

Apparel at Costco follows predictable seasonal and clearance cycles. Knowing when these cycles occur allows you to plan your shopping trips for maximum savings.

Seasonal Clearance Windows

Costco typically clears seasonal apparel about 6-8 weeks before the season ends. For example, winter coats and sweaters will start hitting clearance in late January or early February, not in March. Summer apparel, like shorts and swimwear, begins clearance in late July or early August. Shopping during these windows, rather than at the end of the season, gives you better selection while still getting significant discounts.

Weekly Ad and In-Store Promotions

Costco releases a monthly coupon book (now primarily digital) that includes select apparel items. These are not true clearance deals but are temporary price reductions. However, combining a coupon with an existing .97 markdown can create a deep discount. Always check the coupon book before your trip and look for apparel items that are already marked down with a .97 or .00 ending. The coupon discount will stack on top of the clearance price.

The “Star” and “Asterisk” System

On the price tag, look for a small asterisk (*) in the upper right corner. This symbol indicates that the item will not be reordered. When you see an asterisk combined with a .97 or .00 price ending, that item is being cleared out permanently. This is often the best time to buy, as the price will not drop further. Without an asterisk, the item may return at a later date, but the current clearance price is still a good deal.

Strategies for Finding the Best Apparel Deals

Finding the best apparel deals at Costco requires a systematic approach. It is not about wandering the aisles; it is about targeting specific areas and times.

Target the “Middle Aisle” and End Caps

In most Costco warehouses, the center aisles and end caps are where clearance and promotional items are staged. Apparel deals are often found on tables or racks placed in these high-traffic areas, not necessarily in the regular clothing section. Walk the entire center of the store, scanning for tables with mixed merchandise. This is where the .97 and .00 items frequently end up.

Check the Online Clearance Section

Costco.com has a dedicated clearance section for apparel. This is separate from the warehouse inventory and often includes sizes or styles that are sold out in stores. The online clearance works on a similar markdown system, but the prices are fixed until the item sells out. Set a reminder to check this section weekly, as new items are added sporadically. Shipping is usually included for non-perishable items, but be aware that apparel returns can be processed online or in-store.

Look for “Kirkland Signature” Brand Apparel

Costco’s house brand, Kirkland Signature, offers apparel that is often comparable to higher-end brands at a lower price point. While these items rarely hit deep clearance (since they are private label), they are frequently priced competitively from the start. Look for Kirkland Signature items that have a .97 price ending, as this indicates a temporary markdown or a slow-moving size. These can be excellent value buys for basics like t-shirts, jeans, and outerwear.

Common Mistakes Shoppers Make

Even experienced Costco shoppers can fall into traps when hunting for apparel deals. Avoiding these common errors will save you time and money.

  • Buying for the wrong season: Purchasing a heavy winter coat in October at full price is a mistake. Wait for the late January clearance window. Conversely, buying summer shorts in July at full price is inefficient; wait for the August clearance.
  • Ignoring the asterisk: An item without an asterisk might return at a lower price later. An item with an asterisk will not. If you see an asterisk on a .97 item you want, buy it immediately. Waiting means it will be gone permanently.
  • Assuming all .97 items are the best deal: While .97 is a strong indicator, sometimes a .00 item is an even deeper discount. Compare the .97 price to the .00 price on similar items. The .00 item is often at or below cost.
  • Overlooking the return policy: Costco has a generous return policy, but it is not unlimited. Apparel must be returned in new condition with tags. Do not buy an item just because you think you can return it later. Buy it because you want it and the price is right.
  • Skipping the online-only deals: Some apparel deals are exclusive to Costco.com. These are often multi-pack items or styles not carried in warehouses. If you only shop in-store, you might miss out on bulk pricing on socks, underwear, or activewear.

Tools and Techniques for Tracking Deals

To consistently find the best apparel deals, you need to use a few simple tools and techniques. This is not about luck; it is about being systematic.

Use the Costco App for Price Checks

The official Costco app allows you to scan barcodes in the warehouse. This will show you the current price and any online pricing. While it does not show historical pricing, it can help you quickly compare an in-store .97 price to the online price. If the online price is lower, you can ask for a price match at the register (though Costco does not always match online prices in-store, it is worth asking).

Create a “Wish List” for Seasonal Items

Keep a mental or written list of apparel items you need for the upcoming season. For example, in September, list “winter boots” and “fleece jackets.” When the clearance window opens in January, you will be ready to act. This prevents impulse buys and ensures you are targeting the deepest discounts on items you actually need.

Visit on Weekday Mornings

Costco restocks and marks down items frequently, but the best time to find fresh clearance apparel is weekday mornings, typically Tuesday through Thursday. Weekends are crowded, and the best deals are often picked over by Saturday afternoon. Arriving early on a Tuesday gives you first access to new markdowns that were processed over the weekend or Monday.

When to Call a Senior Shopper or Inspector

While most apparel deals are straightforward, there are situations where you should step back and either consult a more experienced shopper or carefully inspect the item before purchasing.

Signs of a Defective or Damaged Item

If an apparel item is marked down significantly (e.g., .00 price ending) but appears to be in good condition, inspect it thoroughly. Look for pulled threads, missing buttons, stains, or sizing discrepancies. A .00 price often indicates the item has a defect or is a return that cannot be sold at full price. If you find a defect, you can either buy it at the reduced price knowing the issue, or pass. Do not assume it is a perfect item.

Unusual Sizing or Fit Issues

Costco often carries apparel in limited sizes. If you find a deal on a size that is not your typical fit (e.g., a large when you normally wear a medium), be cautious. Costco’s sizing can vary by brand and even by item. If you are unsure, ask a floor associate if they have a sizing chart or if returns are accepted for size issues. In most cases, returns are accepted, but it is better to avoid the hassle.

High-Value Items Requiring Authentication

Occasionally, Costco carries high-end designer apparel or luxury brand items at deep discounts. If you see a deal that seems too good to be true on a brand like Ralph Lauren, North Face, or Patagonia, inspect the tags and stitching carefully. Counterfeit items are rare at Costco due to their direct sourcing, but it is not impossible. Look for consistent logos, proper care labels, and quality zippers. If you are unsure, ask a manager about the item’s provenance. They can often confirm the vendor.

When the Price Seems “Too Good”

If an apparel item is priced at .00 and the discount is 70% or more off the original price, it is likely a final clearance item. This is a good deal, but it also means the item is being liquidated. Check the fabric content. Cheap synthetic blends at deep discounts are often not a great value long-term. Natural fibers like cotton, wool, or linen at deep discounts are usually a better buy. If you are unsure about the quality, consult a senior shopper or a friend who knows fabrics.

Practical Takeaway

Mastering apparel deals at Costco is a skill built on understanding their pricing codes, sales cycles, and clearance patterns. Focus on the .97 and .00 price endings, watch for the asterisk symbol, and shop during seasonal clearance windows. Avoid impulse buys by creating a wish list and inspecting items for defects. When in doubt about a high-value or unusual item, ask a manager or a knowledgeable shopper. By applying these strategies, you can consistently stock your wardrobe with high-quality apparel at prices that beat traditional retail outlets.