Clearance Cycle Hacks: When Department Stores Mark Down

The tag said $12.97. Two weeks earlier, it had been $49.99. I picked up the winter coat — a nice one, wool blend, a brand I recognized — and checked the markdown date on the tag. It had been dropped to 75% off that morning.

I was at Target at 8 AM on a Wednesday in February. That's not a coincidence. Department stores and big-box retailers follow clearance schedules that are almost as predictable as grocery sale cycles. Once you know the pattern, you can time your shopping to catch items at their lowest price — 50%, 70%, sometimes 90% off.

Here's the inside scoop on when each major retailer marks down its clearance, and how to catch the deepest discounts before anyone else.

The markdown timeline

Most department stores follow a standard clearance progression:

1. Initial markdown (15-30% off): Items that haven't sold at full price get a first cut. Still overpriced — wait.
2. Second markdown (30-50% off): Two to three weeks later. Getting interesting but not yet the bottom.
3. Third markdown (50-70% off): Another 2-3 weeks. This is the sweet spot — deep enough to be a real deal, early enough that selection is still decent.
4. Final markdown (70-90% off): The clearance endgame. Best prices, worst selection. You're buying what everyone else passed on.

The entire cycle from first markdown to final clearance typically runs 6-10 weeks. The trick is knowing when each store does its markdowns.

Store-by-store markdown schedule

Target

Target is the most well-documented clearance schedule in retail, thanks to years of employee leaks and shopper tracking. Here's the general pattern (which can vary by store, but holds true for most locations):

• Monday: Electronics, kids' clothing, baby items
• Tuesday: Women's clothing, domestics (bedding, towels)
• Wednesday: Men's clothing, health and beauty, toys
• Thursday: Home goods, housewares, sporting goods
• Friday: Cosmetics, shoes, jewelry

Target markdowns happen in the morning, typically before the store opens or within the first hour. If you want first pick of new clearance items, shop early on the markdown day for your department.

Target's clearance prices end in specific digits: prices ending in .06 or .08 are on their way to further markdowns. Prices ending in .04 are final — they won't go any lower. If you see something at 50% off ending in .04, buy it now or risk losing it.

Kohl's

Kohl's runs clearance markdowns on a roughly monthly schedule, with the deepest cuts at the end of each month as they clear inventory for new arrivals. Kohl's clearance typically follows this pattern:

• End of month: Biggest clearance markdowns
• Tuesday-Wednesday: New markdowns typically appear
• Clearance racks: Located at the back of each department — always check the back walls

Kohl's also runs "Gold Star Clearance" events where already-marked-down items get an additional percentage off. Stack these with Kohl's Cash and Yes2You Rewards for maximum savings.

Macy's

Macy's operates on a seasonal clearance cycle tied to fashion seasons:

• January-February: Winter holiday and cold-weather clearance
• March-April: Spring transition clearance
• June-July: Summer clearance (best time for swimwear, summer clothes)
• September-October: Fall transition clearance
• November: Pre-holiday clearance before Christmas inventory arrives

Macy's Last Act clearance section features items at their final markdown — typically 65-80% off. These are non-returnable, so check items carefully before buying.

Walmart

Walmart doesn't follow a strict weekly schedule, but they do mark down seasonal items aggressively after holidays. The pattern:

• Day after holiday: 50% off seasonal merchandise
• 3-5 days later: 75% off
• 7-10 days later: 90% off (nearly gone by this point)

Walmart also marks down open-box, damaged-package, and clearance items throughout the week. Look for yellow clearance stickers on shelves and endcaps.

The day-after-holiday markdown is the single best shopping window of the year. Halloween candy on November 1st, Christmas wrap on December 26th, Valentine's chocolate on February 15th — all at 50% off immediately, dropping to 75% within a week.

Reading clearance tags like a pro

Different stores use different tag systems, but they all tell you the same thing: how far into the clearance cycle an item is.

• Target: Look at the last digit of the price. Ending in 4 = final clearance. Ending in 6 or 8 = more markdowns coming.
• Kohl's: Yellow tags indicate clearance. Items with a "Gold Star" sticker are at their lowest price.
• Macy's: "Last Act" tags mean final price — no further markdowns. Regular clearance tags may still drop.
• Walmart: Yellow stickers with handwritten prices indicate manager markdowns. These are store-specific and can vary by location.

Seasonal clearance calendar

Here's when to shop for specific categories at their clearance low point:

Month	What's on clearance
January	Winter coats, holiday decor, fitness equipment (resolutions oversupply), bedding ("white sales")
February	Valentine's items (post-14th), winter apparel, snow gear
March	Winter clearance final push, spring transition
April	Spring apparel first markdowns, Easter clearance
May	Spring apparel deep clearance, Mother's Day clearance
June	Summer apparel, swimwear, outdoor furniture starts marking down
July	Summer clearance peak, 4th of July items, back-to-school preview
August	Back-to-school clearance, summer final clearance
September	Back-to-school final clearance, fall transition
October	Fall apparel, Halloween items (after 31st)
November	Halloween clearance, pre-holiday clearance, Black Friday deals
December	Holiday decor (after 25th), winter apparel, year-end clearance

Tips for clearance shopping

1. Shop early morning. Markdowns happen before stores open or in the first hour. Early birds get the best selection.
2. Know your store's schedule. Ask a department employee when they do markdowns. Most will tell you — it's not a secret, just information most people don't ask for.
3. Check endcaps and back aisles. Clearance merchandise gets pushed to the edges of the store. The middle aisles are full-price; the perimeter is where the deals live.
4. Inspect before buying. Clearance items are often final sale. Check for damage, missing pieces, or defects before purchasing.
5. Don't buy just because it's cheap. A 75% discount on something you don't need is still 25% wasted. Only buy clearance items you would have purchased at full price eventually.

The bigger picture

Clearance cycles are one piece of the seasonal savings puzzle. For a complete view of when to buy what throughout the year, check out my holiday shopping timeline. And for everyday savings on groceries and household essentials, the grocery sale cycle method is your foundation.

That winter coat I bought for $12.97? I'm wearing it right now as I write this. It's warm, it fits, and it cost less than a lunch. That's the clearance cycle at work — patience rewarded with a price that makes you smile every time you put it on.