Costco has built a loyal following by offering high-quality merchandise at competitive prices. For shoppers looking to save on clothing, the warehouse giant’s apparel section can be a goldmine—if you understand how their sales and pricing system works. Unlike traditional department stores that run weekly sales circulars with limited-time markdowns, Costco uses a unique markdown strategy that rewards patient shoppers. This guide breaks down exactly how Costco apparel deals work, what the asterisk on the price tag means, and how to time your purchases for maximum savings.

Understanding Costco’s Pricing and Markdown System

Costco does not operate like a typical retailer. Their pricing model is built on low margins and high volume, which means the initial price on most apparel items is already competitive. However, the real savings come from their clearance and markdown process. To navigate this system effectively, you need to decode the price tags.

The Price Tag Code

Every price tag at Costco contains subtle clues about the item’s status. The most important indicator is the price ending. Here is the breakdown:

  • Price ending in .97: This is a manager’s markdown. It means the item has been reduced to clear inventory quickly. These are often the best deals because the store is trying to move the product out the door.
  • Price ending in .00: This indicates a discontinued or clearance item. The price has been cut to the store’s cost or below. These are final-sale items and may not be restocked.
  • Price ending in .49 or .79: This is a standard markdown, often used for seasonal clearance or slow-moving inventory.
  • Price ending in .99: This is the regular retail price. No discount has been applied.

The most critical symbol to watch for is the asterisk (*) in the upper right corner of the price tag. An asterisk means the item will not be reordered. Once the current stock is gone, that specific product is gone for good. When you see an asterisk combined with a .97 or .00 price, you are looking at a deep clearance deal.

How Markdowns Roll Out

Costco’s markdown process is systematic. Apparel items typically follow a three-phase reduction cycle:

  1. Initial Markdown: The price drops by a small percentage, usually ending in .97. This happens when the item has been on the floor for a few weeks and sales are slower than expected.
  2. Deep Markdown: If the item still hasn’t sold, the price drops further, often ending in .00. At this point, the store is taking a loss to clear shelf space.
  3. Final Clearance: The price may drop again, sometimes to a single-digit dollar amount. These items are often found on endcaps or in the middle of aisles, not in the regular apparel section.

The timing of these markdowns is not advertised. Costco does not publish a sale calendar for apparel. The key is to visit frequently and check the price tags yourself. Many seasoned Costco shoppers make a habit of scanning the clearance sections first.

Strategies for Finding the Best Apparel Deals

Finding great deals at Costco requires a proactive approach. You cannot rely on ads or emails. Instead, you need to know where to look and when to strike.

Shop the Clearance Endcaps

Most Costco warehouses have designated clearance areas for apparel. These are often located at the end of clothing aisles or on special racks near the center of the store. Look for items that are not neatly folded or are stacked in piles. Disorganized displays often signal markdowns. The clearance section is where you will find the .97 and .00 price tags.

Check the Price Tag First

Before you get excited about a jacket or a pair of jeans, flip over the price tag. Look for the asterisk and the price ending. If you see an asterisk and a .97 price, grab it. If the price ends in .99, it is not on sale, but it might still be a good value compared to other retailers. The goal is to train your eye to spot the markdown indicators instantly.

Visit on Weekday Mornings

Costco receives new shipments and adjusts prices during the week. Many markdowns are applied on Tuesday or Wednesday mornings. If you visit on a weekday morning, you will find the freshest selection of clearance items before the weekend rush. Weekend shoppers often find picked-over clearance racks.

Know the Seasonal Cycle

Apparel deals at Costco follow a predictable seasonal pattern. Winter coats go on clearance in late January and February. Summer clothing is marked down in August and September. If you are willing to buy out of season, you can save 50% or more. For example, a high-quality winter parka that was $80 in December might drop to $30 in February.

Common Mistakes Shoppers Make

Even experienced Costco shoppers can fall into traps when hunting for apparel deals. Avoid these common errors to ensure you are actually saving money.

Buying Just Because It’s on Clearance

A .97 price tag is not a good deal if the item does not fit or you will never wear it. Costco’s return policy on apparel is generous—unlimited returns with no time limit for most items—but that does not mean you should buy something you do not need. Stick to your wardrobe needs and sizes.

Ignoring Quality for Price

Costco carries a mix of brands, from premium labels like Kirkland Signature and Columbia to lower-cost options. A deep markdown on a low-quality item is still a waste of money. Check the fabric content, stitching, and zippers. A $10 sweater that pills after one wash is not a bargain. A $20 Kirkland Signature cashmere blend sweater that retailed for $50 is an excellent deal.

Assuming All .97 Prices Are the Final Markdown

A .97 price is a markdown, but it might not be the lowest price. If the item has an asterisk and has been on the floor for several weeks, it could drop further to .00. If you are not in immediate need of the item, you can gamble and wait. However, the risk is that someone else buys it first. For high-demand items, it is often better to buy at .97 than to miss out entirely.

Overlooking the Return Policy

Costco’s return policy on apparel is one of the best in retail. You can return clothing at any time for a full refund if you are not satisfied. This is a safety net, but it is not a license to buy recklessly. Frequent returns can flag your account, and the policy is subject to change. Use it wisely.

When to Call a Senior Technician or Inspector

While this guide focuses on shopping strategy, there are situations where a technician or inspector should be consulted—specifically if you are dealing with high-value or specialized apparel. For example, if you are purchasing performance outerwear for work in extreme conditions (e.g., insulated coveralls for HVAC technicians working in cold climates), you may want a senior technician to evaluate the garment’s suitability. Similarly, if you are buying protective clothing that must meet safety standards, an inspector should verify compliance.

For the average consumer, no expert is needed. But if you are outfitting a crew or buying for a specific trade application, do not rely solely on a clearance price. Ensure the apparel meets the required specifications for warmth, durability, or flame resistance.

Tools and Resources for Savvy Shopping

You do not need special equipment to find apparel deals at Costco, but a few tools can help you stay organized and informed.

Price Tracking Apps

Apps like Costco Insider or Flipp can help you track prices and compare deals across warehouses. However, these apps are not always accurate for in-store markdowns because Costco does not publish real-time clearance data. The best tool is still your own eyes.

Social Media and Forums

Online communities like r/Costco on Reddit are excellent resources for deal alerts. Shoppers often post photos of clearance items with location and price. You can search for specific apparel items to see if they have been spotted on clearance in your region. Be aware that deals vary by warehouse, so a post from California might not apply to a store in Ohio.

A Simple Notebook

Keep a small notebook or a note on your phone with your sizes and preferred brands. When you see a deal, you can quickly check if the item matches your needs. This prevents impulse buys and helps you focus on what you actually want.

Practical Takeaway for the Costco Apparel Shopper

Mastering Costco apparel deals comes down to three habits: decode the price tag, shop the clearance sections first, and visit frequently during the week. Focus on items with an asterisk and a .97 or .00 price ending, but never compromise on fit or quality. The best deal is the one that saves you money on something you genuinely need and will use. With a little patience and a sharp eye, you can build a high-quality wardrobe at a fraction of the retail cost.