Dillard’s Clearance Shopping Guide
for less than a Chipotle order. After that, I started treating the clearance section at Dillard’s like a sport.
If you’ve ever walked into a Dillard’s and thought, “This is a lot… where do I even start?” you’re not alone. When I tested different days, sections, and strategies over a few months, I realized: there’s a pretty clear pattern to when and how you’ll score the best deals.
This is the Dillard’s clearance shopping guide I wish I’d had when I started.
Understanding How Dillard’s Clearance Actually Works
When I first started, I assumed “clearance” meant one sad rack in the back. Dillard’s is not that. Their markdown strategy is layered:
- Regular price – New arrivals at full price.
- First markdown – Usually around 25–40% off.
- Deeper markdown – 50–65% off as seasons change.
- Red-tag/Yellow-tag clearance – Final markdowns, often stacked with extra percentage-off events.
Dillard’s doesn’t publicly post their markdown cadence the way some retailers do, but in my experience (backed up by conversations with sales associates), larger markdowns tend to roll out:
- Near the end of each season (Jan–Feb and Jul–Aug are big)
- Right after major holidays
- During promotional weekends (especially around long weekends)
When I chatted with a sales associate in the women’s contemporary section, she casually mentioned, “We usually start moving older merchandise to clearance every few weeks, but the big markdowns are end-of-season.” That matched what I saw on price tags over time.
The Legendary New Year’s Day Sale (Yes, It’s Real)
If you’ve heard whispers about Dillard’s New Year’s Day sale and wondered if it’s overhyped: it’s not.
I tested it. I waited in line. I regretted not bringing a snack.
Every January 1st, Dillard’s is known for marking all clearance an extra 50% off, and in some years 65% off certain categories. It’s not advertised weeks ahead like Black Friday, but regulars know. You’ll see Reddit threads and Facebook groups buzzing about it every December.
My best haul so far from New Year’s Day:
- A $248 Calvin Klein dress for under $40
- A pair of $120 men’s dress shoes for $29
- A $129 comforter set for about $35
The downside? It’s intense. Crowded, picked-over sizes fast, and not exactly a peaceful browsing experience. If you’re crowd-averse, this may not be your day.
If you do go:
- Arrive before opening – There’s almost always a line.
- Know your sizes and brands – This is not the time for leisurely try-ons.
- Prioritize – Hit shoes and handbags first; they disappear.
For context, Dillard’s itself has mentioned the New Year’s clearance event in various local news features over the years, and regional coverage has documented just how huge the crowds are.
Best Days and Times to Shop Clearance
When I tested different days for a month (yes, I literally popped in multiple times a week), here’s what consistently worked best:
Weekday Mornings
- Why it works: Freshly straightened racks, fewer people, and you’re more likely to catch newly moved clearance merchandise.
- My sweet spot: Tuesday–Thursday, around 11 a.m. After store staff have recovered from weekend chaos but before lunch rush.
End of Month & End of Season
In my experience, the best clearance density happens:
- Late January–February – Winter apparel, boots, outerwear.
- Late July–August – Summer apparel, sandals, swim.
Seasonal transition is when Dillard’s wants things gone, and that’s when you see those 65% off tags pop up more often.
Decoding Dillard’s Price Tags (Without Bugging an Associate Every 10 Seconds)
When I first tried to figure this out, I was that person quietly staring at tags, trying to decode the matrix. Over time, patterns emerged.
Typical clues you’ll see:
- Color stickers – Stores sometimes use color dots or stickers for internal tracking of markdown rounds.
- Multiple printed prices – You’ll see the original price and then one or more reduced prices printed or stickered over.
- “As Is” or irregular notes – These usually mean minor damage, missing buttons, or returns.
There’s no universal, publicly confirmed code system (and it can vary by region), but one associate told me: “If you see a price that ends in .97 or .99 on clearance, it’s usually final markdown.” I’ve found that to be mostly true, though policies can vary.
Your best move: if you’re unsure, ask for a price check at the register or a scanner. I’ve had items ring up cheaper than the sticker more than once.
Where to Look: The Hidden Clearance Hotspots
When I walked the store like a clearance detective, here’s where I consistently found the best surprise deals:
1. Formalwear and Special Occasion
Prom, cocktail dresses, and gowns go on steep markdown when event seasons end. I’ve seen $300+ formal dresses down to under $80 on clearance, and then even less when an extra percentage-off promotion hits.
2. Shoes (Especially End-of-Size-Runs)
Dillard’s shoe department is huge, and clearance can be gold if you’re a common size and fast. Last pairs, odd sizes, and end-of-style inventory get moved to dedicated clearance shelving.
When I tested visiting late in the day vs. early, early visits found more complete size runs. Afternoons were more picked over but sometimes had random new additions from returns.
3. Home & Bedding
This is the sleeper hit (pun fully intended). Comforters, sheet sets, towels, and kitchen items get quietly marked down. I once grabbed a high-thread-count sheet set for about 70% off compared to its original tag.
4. Men’s Dress Shirts & Suits
Post-graduation and post-holiday periods tend to have solid markdowns. Think clearance on ties, shirts, and blazers that were brought in for wedding or holiday seasons.
Online vs. In-Store: Where Are the Better Deals?
I’ve shopped Dillard’s clearance in-store and on their website, and they don’t always match.
Online Clearance
Pros- Easy filtering by size, brand, color.
- Access to items not carried at your local store.
- Sometimes extra online-only promotions.
- Things sell out mid-checkout during big promos.
- You can’t inspect fit, fabric, or subtle damage.
In-Store Clearance
Pros- You can inspect quality and try things on.
- Surprise deals not listed online.
- Possibility of lower in-store price if something has been sitting.
- Time-consuming and sometimes chaotic.
- Selection can be very size- and region-specific.
When I compared the same brand dress online vs. in-store, I’ve seen price differences of $10–$30 depending on local demand. It’s worth checking both if you’re hunting a specific label.
Stackable Savings: Credit Cards, Coupons, and Policy Reality
Unlike some retailers that stack coupons like they’re dealing cards in Vegas, Dillard’s is stricter. They’re known for their limited couponing and rarely do broad sitewide promo codes.
From what I’ve seen and confirmed with associates:
- Extra percentage-off clearance events are store- or chain-wide promotions, not stackable coupons.
- Dillard’s credit card holders may get special financing or targeted offers, but not constant giant discounts like some other department stores.
- Clearance is often final sale or has stricter return rules. Always check the sign or ask.
I’ve personally been turned down when I tried to use a general promo on already-reduced clearance. Not fun, but also not shady—they’re pretty upfront about it.
Quality Control: How I Avoided “It Was Cheap for a Reason” Purchases
When everything’s 65% off, it’s way too easy to justify bad decisions. I’ve learned to slow down and check:
- Seams and stitching – Tug gently; if threads pull or you see gaps, skip.
- Zippers and closures – Zip up and down a few times in-store.
- Fabric feel – If it feels plasticky or scratchy here, it’ll feel worse at home.
- Lining – Especially on jackets, dresses, and skirts. A good lining makes a huge difference in comfort and drape.
When I tested a “buy fast because it’s cheap” mindset vs. a slower, more intentional approach, the intentional buys got worn regularly. The impulsive ones sat in my closet until I donated them.
Pros and Cons of Shopping Dillard’s Clearance
The Upside
- Genuinely high discounts on mid- to high-quality brands.
- Great for occasion wear: weddings, work events, holiday outfits.
- Solid home section markdowns that can compete with or beat big-box stores.
The Downside
- Inconsistent selection – What you find this week may never appear again.
- Return policies can be stricter on clearance, depending on item and store.
- Time and energy cost – You have to dig. This is not a 5‑minute errand.
If you treat it like a treasure hunt instead of a quick errand, you’ll be a lot happier.
My Go-To Strategy for a Successful Dillard’s Clearance Run
When I plan a serious run, here’s my basic playbook:
- Check online first – Get a feel for which brands or categories are heavily marked down.
- Go weekday morning – Hit the least chaotic window.
- Start with your priority section – Shoes, formalwear, or home first.
- Do one fast scan, then a slow scan – First pass for obvious wins, second for hidden gems.
- Try everything on you’re not 100% sure about – Clearance regret is real.
- Set a budget before you walk in – Deep discounts can quickly turn into a deep bill.
When I follow this, I walk out with maybe 2–5 really good pieces instead of a giant bag of “it was cheap” clutter.
If you love the thrill of a smart bargain and you’re willing to put in a bit of effort, Dillard’s clearance can be ridiculously rewarding. Just don’t blame me when you find yourself “just popping in to check the clearance racks” a little too often.
Sources
- Dillard’s Official Website – Clearance Section - Current clearance offerings and category structure
- Forbes – The Evolution Of Department Stores In The U.S. - Context on department store strategies and discounting
- CNN Business – How Department Stores Are Trying To Survive - Overview of the broader department store landscape
- U.S. Bureau of Labor Statistics – Consumer Expenditures - Data on consumer spending patterns in apparel and retail
- Harvard Business Review – The Psychology of Discounts - Research-backed insight into how sales influence shopping behavior
