When Does Costco Mark Down Unsold Inventory?

If you're a Costco member, chances are you are serious about saving money. The big box store's bulk sizes and deep discounts make it a favorite among frugal shoppers looking to save on anything and everything. Extreme savers take it a step further, analyzing Costco's inventory cycle to predict when the chain's already low prices will be marked down even further. You can find entire websites, blogs, and forums devoted to the task, and for good reason — there doesn't appear to be a cut-and-dry formula for when the warehouse will drop prices on its unsold inventory. Instead, seasoned shoppers have an arsenal of insider secrets to maximize their Costco savings.

Some sales hunters say that Costco marks down prices on certain days, such as the last Monday of every month (known as "Markdown Mondays"), but these claims are suspect at best. One employee commented on the rumor on Reddit, saying, "I'm a 29-year employee, and I have never heard of Markdown Monday." In fact, another Costco employee said that Costco marks down inventory as needed, so there is no particular day you can count on. To make matters more complicated, some Costco stores have designated clearance sections, while others don't.  It seems that every store handles its own inventory markdowns differently, so the only sales you can bet on from store to store are the deals in the monthly savings booklet.

A general rule of thumb in scoring the best savings is that the early bird gets the worm, and that seems to be true at Costco. Deal hunters report that their spontaneous markdowns tend to happen in the morning, so if you're after a deep discount on kitchen appliances, shelf-stable foods, or even fresh produce, it's best to hit the store early in hopes of snagging the newest price cuts. While shopping on weekday mornings might make for the most pleasant (and least crowded) Costco experiences, don't expect a certain day to guarantee the best deals. That said, you might find that your local Costco does have a markdown rhythm you can count on, but it will be unique to the store. It wouldn't hurt to ask the manager for any insider tips on how their particular store handles its price cuts. 

Costco also utilizes a covert tagging system to indicate discounted and clearance products in its stores. The biggest tell is often the price tag endings. It's an open secret that Costco uses the last digits in its prices to indicate the status of many of its products. Prices ending in .97 usually indicate that the product will not be restocked and is priced to sell. Another tell on the shelf price tags is known as the "death star" — an asterisk in the upper right corner of the tag. The death star means the store is moving the product out for good, whether it's a seasonal item or it's being discontinued. The general consensus among veteran discount shoppers seems to be that the best way to save money at Costco isn't shopping on a particular day, but instead combining these hacks — shop early in the day and keep your eyes peeled for the "death star" and prices ending in .97.