Macy's, Gap, & Target Have Too Much Inventory — Clearance Coming

Summer clearance has already started at some of your favorite stores — even though summer doesn’t technically begin until June 21.

The items people have been buying lots of in recent years — home goods, home electronics, casual apparel, and activewear, for example — are now collecting dust on shelves and in backrooms. That means some incredibly early summer clearance sales.

 

Many stores have surplus merchandise they’re being forced to discount.

Shoppers’ spending habits have changed pretty quickly, many retail executives agree. They’re spending less on comfy clothes and home goods, and are instead saving their money for fuel costs, dressier attire, and “revenge travel”.

Stale inventory is bad news for retailers like Walmart, Target, Macy’s and Gap, and they’ve got lots of it — just like they did when stores had to close during the pandemic.

And just like stores’ reopening sales, these retailers are going to solve their inventory problems with big sales.

Here’s who’s having some krazy sales:

 

Find deals on patio furniture and other outdoor items at Walmart.

Walmart bought lots of products to get ahead of inflation and supply chain issues. Their overall inventory grew by about 33% — but now, Walmart wishes they could get rid of some of it.

Walmart exec John Furner recently told investors that the company wants to get rid of about 20% of the increased inventory by early fall 2022.

That means sales on spring and summer items such as patio furniture, landscaping materials, grills, plants, pool chemicals and clothing. Here are some recent deals we found:

• 58% off a Kids Camping Set
• $4.72 beach towels
• 50% off Justice Swim Gift Box Sets
• 20% off Zero-Gravity Patio Chairs
• 41% off Pit Boss Wood-Fired Pellet Grill

Stay up to speed on Walmart deals with KCL.

 

Get discounted TVs and home decor from Target throughout June and July.

As of April 30, 2022, Target‘s overall inventory was 43% larger than it was a year before. Facing the same inflationary/economic problems as Walmart, they announced that their profits would take a hit as they marked down items to balance out their inventory.

So keep an eye out for Target deals on clothing, small appliances, seasonal outdoor products, home decor and TVs — priced to move by the end of July, so they can make room for back-to-school products and household essentials.

We’ll help teach you how to shop smarter at Target to save even more money.

 

Easily find summer clothing for 50% off at Gap.

Gap Inc. — parent to Gap, Old Navy and Athleta — has 34% more inventory than they did a year ago. Gap stores have held sale after sale this spring and summer, discounting shorts, tops, and dresses 30-50%. (They’re even letting Sam’s Club sell some of their shorts.)

Online, shoppers have found those discounts, plus an extra 40% off sale items with prices ending in .99 and .97.

We figured out the best ways to save at Gap after paying attention to their sales rhythm.

 

Find just about anything at Old Navy for less than $20.

Old Navy has been marking down “almost everything” in the store to $19 and under. Dresses, T-shirts, swimwear, shorts and more — plus an extra 25% off on select items. In particular, look for the most discounts on women’s clothing, an area Old Navy execs say “continues to be out of sync with the change in consumer. . . preference.”

And that’s not the only way you can save at Old Navy.

 

 

Athleta is filling up their “last chance” sale section.

Athleta has more than 1,200 items listed in their sale section online, and 1/4 of those are in the deeply discounted “last chance” section — filled with bras, tank tops, leggings and shorts priced at more than 50% off.

Might be a great time to read up on Athleta’s price adjustment policy.

 

Look for a string of sales on activewear at Macy’s.

Like Target, Macy’s predicted lower profits as the department store works to sell their excess inventory of casual clothing, activewear, and home textiles (like bedding).

Macy’s hopes to offload these products during sales throughout the summer, offering additional discounts on top of sale prices — like what we’re seeing during the Macy’s Friends and Family Sale.

You’ll want to walk into Macy’s with our must-read Macy’s savings tips.

 

American Eagle is trying to get rid of all of their summer stuff ASAP.

American Eagle has 46% more inventory than it did in 2021, and the company needs to get rid of a lot of it to be ready for back-to-school sales.

Aerie, American Eagle’s leggings and underwear store, had been a key driver of profits for the company. But now, as shoppers’ demand for those products dwindles, expect to see aggressive sales.

American Eagle has focused their sales on shorts, but there are more than 400 different items in American Eagle’s online clearance, and they gave shoppers another 20% off with a coupon code.

Aerie has discounted all of their swimsuits 30-50% off, and 50% off more than 300 items in their seasonal “Vacay Faves” collection.

 

Shop Urban Outfitters to find sales on underwear and accessories.

Urban Outfitters says they bought about 32% too much this year, and they’re trying to reduce their inventory “across the board” this summer.

Although Urban Outfitters is discounting their more than 500 swim and summer apparel items, the biggest discounts are in the sale section. More than 2,400 products are in the sale section of UrbanOutfitters.com, and the biggest discounts are on bras, underwear, jewelry and accessories.

 

As for all the other stores? Don’t worry, summer clearance is coming.

We’ll tell you who’s got the best sales at the end of summer — regardless of whether your favorite store ordered too much inventory. Check out the best things to buy on summer clearance.