Costco Christmas and Year-End Clearance Guide
*. The glittery trees go on sale, the toy aisles thin out, and the members who know what they’re doing quietly stock up for next year at 50–70% off.
This is the playbook I wish someone had handed me years ago.
When Costco Actually Starts Marking Stuff Down
The biggest mistake I made my first couple of years: assuming “after Christmas” meant December 26.
In my experience, Costco’s Christmas and year-end clearance happens in waves:
- Mid-December (around Dec 15–18): First quiet markdowns on some décor, wrapping paper, and gift sets that aren’t selling.
- Dec 26–30: The big first cut. Most remaining Christmas items drop 30–50%.
- Early January: Steeper markdowns (often to 70–80% off) on whatever’s left, especially décor and lights.
This varies a bit by location because Costco is a warehouse club, not a traditional retailer. My local store in the suburbs started clearing wrapping paper on December 18 last year, while a busier city location waited until the 26th.
Here’s the trick I use: I walk through the seasonal aisle the week before Christmas and snap a few pictures of price tags. Then I go back right after Christmas and compare. That’s how I first caught a $129 artificial tree dropping to $59.97 on December 27.
How to Read Costco Price Tags Like an Insider
The secret language of Costco price tags is very real — and it absolutely matters for Christmas clearance.
Here’s what I’ve consistently seen and tested myself:
- Prices ending in .97 – These are markdowns set by the local warehouse. When I tested this across three stores in my area, almost every .97 holiday item was lower than the original price I photographed the week before.
- Prices ending in .00 or .88 – Often special manager markdowns or vendor closeouts. I once scored a giant outdoor reindeer for $19.00 that had been $89.99 two weeks earlier.
- Asterisks (* ) in the top right corner – This means discontinued: what’s on the floor is all they’ll get. Around Christmas, if you see a tree, wreath, or big holiday décor item with an asterisk and a .97 price, that’s the green light.
Costco itself has never posted an official “decoding” guide, but employees have confirmed this system in several interviews and member forums, and it’s consistent with what I’ve observed over five+ Christmas seasons of obsessive aisle stalking.
Best Categories to Target During Christmas & Year-End Clearance
Some things are worth waiting for. Some… really aren’t. Here’s where I’ve seen the best value.
1. Holiday Decor (Trees, Lights, Wreaths)
This is the category where the clearance gets wild.
Last year, I grabbed a 7.5-foot pre-lit artificial tree that started at $599.99 for $249.97 on January 3. It had the asterisk, the .97, and there were four left. When I went back three days later out of curiosity — all gone.
Same goes for:
- LED string lights
- Wreaths and garlands
- Outdoor décor (reindeer, snowmen, projectors)
If you have storage space, buying these at year-end is like giving your future self free money.
2. Gift Wrap, Bows, and Cards
I stopped buying wrapping paper anywhere else once I realized how cheap it gets here after Christmas.
The huge rolls of Kirkland Signature wrap (the heavy, non-rip kind) usually hit 50% off or more. I’ve paid $4.97 for rolls that were $11.99 in early December.
Pro tip: Look for neutral patterns — metallics, stripes, dots — so you can use them for birthdays and weddings too.
3. Gift Baskets and Food Gift Sets
This is where you have to be a bit strategic.
I recently discovered that many of the big snack towers and chocolate tins get marked down right after Christmas and just before New Year’s, because they’re marketed as “holiday entertaining” and “host gifts.”
What’s worth it:
- Sealed chocolates, cookies, and nuts with long expiration dates
- Coffee and tea gift sets
- Fancy olive oil or vinegar sets
What I skip:
- Any fresh items (cheese, charcuterie) that are too close to expiry
- Overly Christmas-branded tins I won’t reuse
I literally stand in the aisle and check expiration dates. No shame.
4. Toys and Kids’ Stuff
Toys are a bit of a gamble. Costco tends to buy tight on toys and move them early, so the selection is thinner by late December.
But when you hit it right, you can:
- Stock birthday gifts for the next year at 30–50% off
- Grab craft kits, STEM sets, and book bundles on clearance
In my experience, toy markdowns are best between Dec 26 and Jan 5. After that, the seasonal section flips hard to fitness and organizing.
When You Shouldn’t Wait for Clearance
I’ve learned this the hard way: not everything is worth playing clearance roulette.
- Advent calendars – These sell out way before December even starts. If you see a good Lego, chocolate, or beauty calendar in October or early November, buy it.
- The most popular décor item of the year – Every year there’s a viral item (one year it was the giant nutcracker, another year the oversized lanterns). These rarely make it to clearance.
- Premium electronics – Black Friday or early holiday promos are usually better. TVs, laptops, and big-ticket tech don’t typically get a special “Christmas clearance” round; they follow broader retail pricing cycles.
So I treat it this way: if I’d be genuinely sad to miss it, I buy it at regular or modest sale prices. If it’s “nice to have,” I roll the dice and wait.
Timing Your Trip (and Avoiding the Chaos)
The least fun part of Costco at year-end is the crowd situation. I’ve tried multiple patterns and here’s what’s actually worked:
- Best days: Weekdays between Christmas and New Year’s, especially mornings before 11 a.m. Wednesday has consistently been the most manageable for me.
- Days to avoid: Dec 23–24 (it’s pure chaos) and January 1 (short hours, everyone restocking).
- Online vs. in-store: Costco.com does have post-holiday deals, but from what I’ve tracked, the deepest Christmas clearance is usually in-store, and selection varies by warehouse.
If I’m hunting for big décor pieces, I go December 27 or 28. If I’m just stocking up on wrap, cards, and gift sets, early January is usually even cheaper.
Pros and Cons of Chasing Costco Year-End Clearance
I love the hunt, but it’s not all magical savings.
What really works
- Massive savings on big seasonal items – That $600 tree for under $250 wasn’t a one-off; I’ve repeated similar scores with wreaths, lights, and decor.
- Less financial stress next Christmas – Having wrap, cards, and spare gifts already bought makes December feel less like a financial ambush.
- Quality vs. dollar-store regret – Costco’s Kirkland Signature holiday stuff tends to be genuinely sturdy and reusable.
The trade-offs
- Storage space – You need somewhere to keep the tree, lights, and crates of wrap for 11 months.
- Selection risk – If you wait too long, you may be picking through random leftovers.
- Impulse danger – I’ve had to train myself not to buy just because something is 70% off.
When I tested my own buying patterns over two years, I realized one painful truth: the savings only count if I’d actually have bought that item at full price (or needed a similar item anyway). Otherwise, it’s just discounted clutter.
How to Plan for Next Year (So You Actually Use What You Buy)
I keep a simple notes app list titled “Next Christmas.” It has three sections:
- Stuff I ran out of – gift tags, tape, plain gift bags.
- Stuff I wish I’d had – more outdoor timers, extra extension cords, an extra set of white lights.
- Gifts that worked – things multiple people loved (for me: snack towers, cozy throw blankets, and certain book box sets).
Right after Christmas, I walk into Costco with that list. It keeps me focused and saves me from walking out with a nine-foot animatronic snowman I absolutely do not need, no matter how majestic he looks.
Final Thoughts (From One Costco Stalker to Another)
If you approach Costco’s Christmas and year-end clearance with a bit of strategy — watching price endings, timing your visits, and being honest about your storage space and actual needs — you can shave hundreds of dollars off next year’s holiday budget.
When I tested a “planned” clearance year (list, budget, specific categories) against my previous “wing it and grab whatever looks cheap” year, I spent slightly less overall but ended up with twice as much stuff I actually used. That’s the sweet spot.
So yes, enjoy the samples and the twinkly aisles in November. But the real magic? It’s in that quiet week after Christmas, when the crowds thin out, the red price tags appear, and you’re quietly shopping for next December like the most prepared person on earth.
Sources
- Costco Wholesale – Official Site – Product availability, membership info, and seasonal offerings
- Consumer Reports: How to Decode Prices at Warehouse Clubs – General strategies and insider pricing tips for warehouse stores
- Forbes: Holiday Shopping Trends and Spending Data – Overview of consumer holiday spending patterns
- National Retail Federation – Holiday and Seasonal Trends – Data and analysis on holiday retail trends
- U.S. Bureau of Labor Statistics – Consumer Price Index – Official data on inflation and consumer prices impacting holiday budgets
