Inside the Costco Year-End Clearance Guide
’m researching whether I actually need a commercial-grade stand mixer.
When I tested a few different shopping strategies over the last three holiday seasons, Costco’s year-end clearance turned out to be one of the best value windows of the year—but only if you know how to read the signs, literally and figuratively.
This is the guide I wish I’d had before I started treating those giant orange price tags like a personality test.
When Costco’s Year-End Clearance Really Starts
I used to think year-end clearance meant “the week after Christmas.” That’s… not how Costco plays.
In my experience, the clearance wave hits in three phases:
- Early Wave: Right after Thanksgiving
Black Friday stuff that didn’t sell starts getting quietly marked down in early December. I once snagged a set of Cuisinart knives for 40% off on December 8 while people were still buying full-price gift baskets.
- Main Wave: Mid–Late December
This is when seasonal items (toys, decor, small appliances, gift sets) start to move fast. My local warehouse in 2023 had Christmas décor at 50–70% off by December 22.
- Final Wave: Last Week of December + First Week of January
This is the “we need this gone now” phase. Floor models, odd sizes, and overstocked items get aggressive markdowns. I grabbed a floor-model TV stand for under $80 that had been $199 in October.
Costco doesn’t publicly announce a “clearance calendar,” but employees have told me the goal is to clear seasonal space by early January to make room for fitness, tax-season, and storage items.
How to Read Costco Price Tags Like an Insider
I didn’t believe this at first, but once I started tracking prices in a notes app, the patterns became obvious.
Here’s what I’ve consistently seen across multiple warehouses I’ve visited:
- .99 endings – Regular price (example: $19.99)
- .97 endings – Manager’s markdown / clearance
When I tested this over 10+ visits, .97 items almost always disappeared within a week.
- .49 or .79 endings – Often a special buy from the manufacturer, not always clearance but still a discount.
- An asterisk (*) in the upper right corner – “When it’s gone, it’s gone.” No more shipments coming to that warehouse.
One December, I watched a Dyson vacuum go from $449.99 to $349.97 (with an asterisk) in the span of about 10 days. I waited one more week hoping for another drop. It vanished. Someone else got my vacuum.
Lesson: with .97 + asterisk, if you genuinely want it and it’s a good price historically, you probably shouldn’t wait.
Where the Best Year-End Deals Actually Hide
I’ve walked every single aisle of my Costco on slow weekday mornings (yes, this is my idea of self-care) and certain zones reliably deliver year-end gold.
1. Seasonal & Holiday Aisles
This is the obvious one, but it’s also where the deepest percentage discounts are.
- Artificial trees and outdoor décor often hit 50–70% off late December.
- Holiday wrapping paper, ribbons, and cards are an easy win—if you have storage, you’ll thank yourself next year.
I recently picked up a massive roll of premium wrapping paper for under $5 that lasted me the entire next Christmas season and still isn’t finished.
2. Apparel & Footwear
Costco clothing is underrated. Year-end is when random big-name brands quietly drop in price.
Last year I scored Levi’s joggers for cheaper than a basic pair at a discount outlet. The trick? Check the tables along the perimeter near seasonal items—those are often the trial runs or closeouts.
3. Small Appliances & Kitchen Gadgets
This is where I tend to lose all rationality.
During my own mini “experiment” in 2022 and 2023, I tracked prices on:
- Air fryers
- Blenders (Vitamix, Ninja)
- Espresso machines
- Stand mixers
Patterns I noticed:
- Black Friday gives flashy discounts, but year-end clearance can be equal or better—especially on floor models or less popular colors.
- Items in non-standard colors (like bright red or teal) frequently hit clearance first.
I once watched a red KitchenAid stay stuck at full price during Black Friday, then drop to a .97 clearance the week after Christmas. Same model, just not everyone’s color.
4. Electronics… With a Huge Asterisk
Electronics are where people get overly excited and sometimes burned.
You can find:
- Floor-model TVs marked down hundreds of dollars
- Soundbars and monitors on .97 clearance
But in my experience, TVs and laptops aren’t always the best value at year-end vs. traditional tech sale periods like Black Friday or back-to-school.
I cross-checked a few TV models using price history tools and retailer data, and the year-end price at Costco was sometimes only $20–$30 below their earlier sale price. Good, not mind-blowing.
Strategies I Tested That Actually Work
Over the last 3 years, I tried different approaches to see what maximized savings without turning my brain into a spreadsheet.
1. One “Recon Trip,” One “Buy Trip”
I started doing a scouting run mid-December:
- Walk the aisles without a cart (key detail)
- Take phone photos of price tags I care about
- Note .97 and asterisk items
Then I’d go back a few days later—usually a weekday morning—with a clear list.
Result? I spent less impulsively and still caught most of the markdowns I wanted.
2. Use the App and Website for Price Anchoring
Costco’s app and website let you see many prices in advance. When I tested this, I noticed:
- Some warehouse-only deals never appear online
- But for certain big-ticket items, the online price gave me a baseline to spot real clearance versus fake FOMO
If something is only 5–10% off the regular price, I consider whether:
- I genuinely need it now
- It’s likely to appear again during another promo window
3. Talk to Employees (They Know What’s Coming Off the Floor)
One of the most useful things I did: I just started asking.
I’ve asked warehouse employees:
- “Are you expecting more of this item?”
- “Is this being discontinued at this location?”
- “Do prices usually drop again on these?”
More than once, I’ve been told some version of: “This is the last pallet; once it’s gone, that’s it.” That’s when I stopped playing the waiting game and just bought the thing.
The Pros and Cons of Costco Year-End Clearance
It’s easy to romanticize the deals. But after a few seasons of testing this, here’s the honest balance.
What’s Great
- Legit savings on seasonal and houseware items – I’ve seen 30–70% off in these categories.
- Costco’s return policy – As of this writing, most items (excluding some electronics and special categories) still have a very generous return window if something doesn’t work out.
- Quality control – Compared to random online clearance, Costco tends to curate better baseline quality. You’re not sifting through total junk.
What’s Not So Great
- Crowds & chaos – The week between Christmas and New Year’s can be full-on cart traffic.
- FOMO pressure – The asterisk and .97 pricing can make you feel like every decision is urgent. It’s not.
- Limited selection – Clearance means odd sizes, colors, or single units. If you’re picky, you might leave empty-handed.
- Not always the best deal globally – For certain items (like TVs), specialty electronics retailers or Amazon can still edge out Costco on price during other sale windows.
When You Should Skip the “Deal”
Over time I made a simple rule for myself: If I wouldn’t buy it at regular price within the next 3 months, I skip it on clearance.
I’ve passed on plenty of:
- Random single-use kitchen gadgets
- Decorative sets that look nice but don’t solve a real need
- Giant food gift baskets that would realistically go half-eaten
Researchers in consumer psychology have found that scarcity and time pressure (like “limited quantities!”) can seriously distort our sense of value and need. I’ve caught myself standing over a pallet of discounted hot cocoa bombs, convincing myself I’m a “hosting person.” I’m not.
My Personal Year-End Costco Game Plan
If you want a simple, no-spreadsheet approach, here’s the pattern that’s worked best for me:
- Make a short list ahead of time
Things like: replacing towels, upgrading a pan set, kids’ winter gear for next year, organizing bins.
- Hit these zones first
Seasonal/holiday, housewares, small appliances, apparel.
- Scan for .97 and asterisks, but don’t worship them
They’re signals, not commandments.
- Cross-check big-ticket items on your phone
If it’s a few hundred dollars, I’ll search quickly online while I’m standing there.
- Give yourself a “wildcard budget”
I let myself pick one unplanned item guilt-free—only if it’s something I would’ve plausibly bought within the next few months.
When I shopped this way last year, I walked out with:
- A deeply discounted set of glass food containers (still using them daily)
- Next year’s wrapping paper and gift bags
- A clearance winter coat that would’ve been twice the price at a department store
What I didn’t walk out with: the commercial popcorn machine. Personal growth.
If you treat Costco year-end clearance as a targeted opportunity instead of a treasure hunt free-for-all, it becomes less about impulse and more about strategic stocking up.
The thrill is still there—you just don’t need a second pantry and a side hustle on Facebook Marketplace to recover from it.
Sources
- Costco Wholesale – Returns and Exchanges - Official information on Costco’s return policy and limitations
- CNBC – How Costco makes billions by charging membership fees - Background on Costco’s business model and pricing power
- Consumer Reports – How to Shop at Warehouse Clubs - Expert tips on maximizing value at warehouse clubs
- American Psychological Association – The lure of scarcity - Research on how scarcity influences consumer decision-making
