Both outlet malls and clearance racks promise big discounts-but they work very differently. Outlets often sell items made specifically for outlet pricing, while clearance is usually last-chance markdowns on regular retail stock. Knowing the difference helps you avoid overpaying for lower-quality goods or missing deeper discounts on the same items you'd buy at full price.
What Is an Outlet Store?
An outlet store is a brand-owned or brand-authorized shop that sells at lower-than-regular prices, often in outlet malls. Many items are made-for-outlet (different materials, simpler construction), though some are overstock, past-season, or slight irregulars.
What outlets typically sell
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Made-for-outlet merchandise (common at many brands)
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Overstock and past-season items from regular stores
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Discontinued styles and slight cosmetic irregulars
Major outlet retailers (official sites)
How outlet pricing works
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Base discounts often run 20–60% off suggested retail.
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"Compare at" prices aren't always the same as what the item sold for in regular stores, since many pieces were never sold at full-price retail.
What Is a Clearance Sale?
Clearance is when retailers mark down existing inventory to move it fast. These are genuine price cuts on items that previously sold at regular retail prices.
Why stores run clearance
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Seasonal turnover (making room for new collections)
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Discontinued products and slow sellers
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Overstock or store-closing liquidations
Where to find clearance
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Dedicated clearance racks in regular retail stores
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Department stores like
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Nordstrom and
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Online clearance sections (often different inventory than in-store)
Typical discount depth
- Starts around 30% off, then steps to 50–70%, and can reach 70–90% off at end-of-season or post-holiday waves.
Outlet vs Clearance: The Key Differences
|
Factor |
Clearance |
Outlet |
|
Product quality |
Same as regular retail (identical item, just marked down) |
Varies; made-for-outlet items may use simpler materials/construction |
|
Discount depth |
Increases over time; end-of-season can hit 70–90% off |
More consistent year-round (e.g., 40% off), with occasional extra % off events |
|
Selection |
Shrinks fast; best sizes/colors sell out early |
Broader size runs; inventory produced for outlets |
|
Timing |
Predictable seasonal windows (Jan–Feb, Jul–Aug, Dec 26–31) |
Stable pricing year-round; holiday weekends add extra discounts |
Which Offers Better Savings?
It depends on what you want and when you shop.
When clearance wins
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You want original retail quality at steep discounts.
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You can wait for end-of-season markdowns (e.g., January for winter, July–August for summer, Dec 26–31 for holiday).
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You're targeting premium/luxury brands that rarely make outlet-specific goods.
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You shop stores known for deep clearance, like
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Nordstrom Rack (e.g., "Clear the Rack" events), Macy's, Target, and Kohl's
When outlets win
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You need specific sizes now and don't want to gamble on clearance stock.
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You want consistent discounts outside seasonal sale windows.
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You're buying basics (tees, jeans, activewear) where outlet quality is fine.
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You prefer one-stop shopping at an outlet mall.
The real winner: clearance at outlets
The deepest savings often appear when an outlet runs its own clearance event (e.g., "Extra 50% off clearance"). That stacks outlet pricing with additional markdowns, sometimes reaching 70–80% off suggested retail.
Smart Shopping Strategies
Outlet tips
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Inspect quality (stitching, fabric weight, hardware).
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Learn brand tags/SKUs that indicate made-for-outlet items.
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Shop holiday weekends (Memorial Day, Labor Day, Black Friday) for extra discounts.
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Check official brand outlet pages and deal hubs for promos. For broader coupon codes and promo pages, see
Clearance tips
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Shop early in the markdown cycle for best selection (30–40% off), then revisit for deeper cuts.
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Ask about additional storewide or category markdowns on clearance.
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Check online clearance sections; inventory can differ from stores.
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Confirm return policies—some clearance is final sale.
Best Retailers for Each
Strong outlet options (official)
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Nike Factory Store– frequent extra-%-off events
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J.Crew Factory– lower-price line, distinct from mainline
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Saks OFF 5TH– mix of Saks clearance and outlet styles
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Banana Republic Factory – factory-specific merchandise
Strong clearance options (official)
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Nordstrom/ Nordstrom Rack– deep end-of-season events
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Macy's– rotating clearance with coupon stacking
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Target – weekly clearance updates; seasonal items can hit 70% off
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Kohl's– clearance plus Kohl's Cash and %‑off coupons
For current promos across brands, browse the SavePlus deals page
Seasonal Shopping Guide (US)
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Winter (Dec–Feb): Post-holiday clearance is prime time (70–90% off holiday decor, winter coats). Outlets run steady pricing with holiday-weekend boosts.
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Spring (Mar–May): Winter leftovers hit final clearance; spring collections arrive at full price. Memorial Day brings outlet sale events.
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Summer (Jun–Aug): Spring/summer items begin clearance in July–August; back-to-school clearance starts late August. Fourth of July and Labor Day add outlet discounts.
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Fall (Sep–Nov): Summer items deeply discounted; pre–Black Friday clearance makes room for holiday stock. Black Friday weekend is a top outlet event.
Online vs In-Store
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Online clearance: Larger selection, easy browsing, better size coverage across warehouses; watch for free-shipping thresholds.
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In-store clearance: Possible extra markdowns not yet online, ability to inspect quality/fit, immediate pickup.
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Outlet malls: Multiple brands in one trip, mall-wide sales, VIP programs.
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Online outlets: Convenient, but shipping costs can erode savings—calculate total cost.
Common Myths, Quickly
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"Outlets always offer better deals." Not necessarily—clearance on regular-retail quality can beat outlet pricing on made-for-outlet goods.
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"Clearance means low quality." False—clearance items are typically the same quality as full-price merchandise.
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"You can't return outlet/clearance." Policies vary; many stores accept returns within standard windows. Always check before buying.
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"Outlet products are identical to retail." Mostly no—much outlet inventory is manufactured specifically for outlets with different materials/construction.
Which Should You Choose?
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Choose clearance if you value original quality, can be flexible on sizes/colors, and can time purchases to end-of-season windows.
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Choose outlets if you need specific sizes now, want steady discounts year-round, or are buying basics.
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Choose both if you want maximum savings—especially by hunting clearance sections inside outlet stores.
Conclusion
There's no single winner between outlets and clearance. Clearance sales typically deliver deeper discounts on the same quality you'd get at full price, but you'll need patience and flexibility with sizes and timing. Outlets offer steadier savings and better size availability year-round, though many items are made specifically for outlet pricing and may use simpler materials.aboutdarwin+1
The best approach is to use both: grab everyday basics at outlets when the price is right, and wait for end-of-season clearance at regular retailers when you want higher-quality pieces or designer items at the lowest prices. And keep an eye on outlet stores' own clearance sections—stacking outlet pricing with extra markdowns is where you'll find the biggest deals.
Ready to start saving? Check the latest verified promo codes and retailer deals on the SavePlus deals page before you checkout.
FAQs
Is outlet quality the same as retail?
Usually no. Many outlet items are made-for-outlet with different materials and simpler designs; only a small share is true retail overstock.
When are clearance discounts deepest?
End of season: January–February for winter, July–August for summer, and Dec 26–31 for post-holiday blowouts.
Can I use coupons at outlet stores?
Often yes during promotions; policies vary by brand. Check official store pages and deal hubs like SavePlus fashion coupons
Are outlet malls worth the drive?
Yes if you're visiting multiple brands within ~30–45 minutes, especially during holiday sale weekends.
Do online outlets match in-store deals?
Generally similar, though in-store may have exclusive doorbusters; online often offsets with free-shipping promos.
How can I tell if something is made-for-outlet?
Look for extra dots/diamonds on tags, different SKUs, or simpler construction/thinner fabrics.
Which retailers have the best clearance?
Nordstrom Rack, Macy's, Target, and Kohl's consistently run deep, frequent clearance events.
Should I wait for clearance or buy at outlets now?
If you need it now and found your size at an outlet, buy it. If you can wait 2–3 months to an end-of-season window, clearance at regular retailers often delivers better quality at similar or lower prices.
