Target Clearance Today, Goodwill Tomorrow
Ever wonder what happens to Target clearance merchandise that nobody buys? As I wrote about in my article, Hitting the Bullseye: Strategies for Shopping at Target, Target follows a fairly consistent clearance strategy – 15%, 30%, 50%, 70% off and sometimes even 90% off (seasonal items seem to be the only ones that ever hit 90% off). Much of their unsold clearance merchandise, marked as “salvage” is sent to Goodwill Industries. In fact, Goodwill stores offer many brand-new Target items (sometimes for less than their Target clearance prices).
In my years of shopping both Goodwill and Target, I know this to be true. Lately, I’ve purchased lots of brand-new Target items at Goodwill – sweaters, small appliances (I got my Instant Pot there), and even dog biscuits. Usually, the pricing is in line with their last markdown (typically close to 75% off the new Target price). Sometimes, I don’t think the Goodwill prices are all that great, especially when they’re less than 50% off the original Target price. However, the good deal is in the eye of the beholder. If it’s something you really want and think is cute, that’s what matters!
So, if you enjoy shopping for Target’s clearance buys and can’t find any good ones in their stores, you’re not out of luck yet. Head on over to the nearest Goodwill store for another chance at finding a great deal!
Be VERY careful here. Target does give Goodwill ALOT of items BUT Goodwill cannot sell them for less than a certain price which is often more than what they were on sale at Target for.
Recently I found a Shark on clearance (75%) for $22. I even picked one up for a friend a week later. Well, they eventually made it over to Goodwill were they were marked for $44. These are known as the RED tags. Goodwill has an agreement with Target and cannot sell them for less. I was told this info by a cashier and a manager.
They do have red tag sales I believe once or twice a year where all red tags are 50% off the red tag price.
That’s interesting, Anita. Some of the prices I saw were less than the 75% off price. There’s a home decor item pictured above – Reg $9.99 at Target, clearance price was $2.48. Goodwill price $1.99. The kids’ boots I saw were also marked less than Target’s 75% off price. Target clothing at Goodwill was generally marked in between Target’s 50-75% off range.
I also have purchased target items from goodwill for less than the lowest clearance price~ most recently a cute leather wristlet for $1.99 marked $3.48 on the Target tag. That was part of what rekindled my affair with goodwill after many disappointing trips! 🙂
That is incorrect about Goodwill not being able to mark it down lower than Target. I have been purchasing housewares from Goodwill AND Salvation Army for months now. They price WAY lower than you can get it at Target. I’m talkin Throw pillows for $1.00 and Fieldcrest King Duvet Sets for $5. My most recent purchase was brand new Eclipse Thermal Backed Drapes, 4 panels with grommets, for $4 each. Thats $16.00 for 4 panels that retail $20.00 EACH. And they had Blue tags, not red. I’ve had my eye on Eclipse drapes for awhile and clearance prices weren’t even close to that. Maybe you are referring to a regional thing?
Oh and I believe my drapes came off this pallet concept… There was a typo on the packaging so Target couldn’t sell it! Perfect condition. Oh and there is the $99.00 Wall Clock I got for $9.99 because it was missing the second hand- who needs it for a price like that?! Goodwill has once again become an addiction of mine 🙂
…Especially when you can buy clock hands at a craft or hobby store for a couple of bucks and replace that second hand. Heck, replace both hands at that price.
Maybe it’s a regional thing. When the Goodwill in my area first started selling Target items they were pretty cheap because they had the Target clearance tag and also the Goodwill tag on the item. So you could see the difference. Nowadays, they scratch off all Target prices off of the clearance tag and they’re marked with very little price difference than the Target sale price. (Just comparing Target prices online. We live in a fairly small town without a Target.)
I agree, sometimes there is only a slight price difference between Goodwill and the Target sale price, but usually still a great deal for something brand new!
My Goodwill does what Anita said. It keeps me going to Target, not GW!
My friend is a manager at a Goodwill store and while I think it may be possible for the individual clearance items to have a minimum sale price, he has said that Target also sells pallets of unsaleable items to Goodwill for very little money, say $100- $200. When packaging tears or a manual is lost and Target cannot sell it at their store, they’ll dump the items onto a pallet in their store room until the pallet is fully piled up with the loot and is then shrink wrapped up and sold to Goodwill. The thing is: Goodwill doesn’t know exactly what it is buying. It could be anywhere from baby socks to flat panel televisions and everything in between. Maybe this is how the items that are being sold for less than clearance price appear?
I’ve heard about the pallets too. That could explain it! Thanks for the information.
I was wondering if it was sold to Goodwill otherwise why not donate certain items to schools in need instead
I have bought many of things from goodwill that was still in box (damaged) but good for 1/2 if not less than the price at target. I have bought several toys, clothes, curtains, curtain rods from goodwill that were less than what target had them on sale for. Ive seen stoller sets with the car carriers for like 50 bucks for the whole thing still in the box from target and if anyone has kids or babies knows the combo sets are not cheap.
I just bought new pants from Catherines at Goodwill w/ tags.
I’d love to buy another pair, as they are soooo great, but they don’t carry them anymore.
How would I find out which GW my Target locations sell to? My GW down the street never has anything good, it’s pretty pathetic actually.
You could probably ask the manager at Target for that information, Natalie.
our goodwill has tons of target items marked way up from the clearance price at target. while goodwill is better to support the actual clearance at target is much cheaper
I talked to my local GW to find out why they are selling new products for more then the sale price. Their response was they sell new items for half off the original price even its cheaper then sell price or not. My suggestion to them is at least remove the sale tag when pricing items lol
I spoke with a manager at Goodwill and he informed me that they need to price some Target items at an increased price in order to make a profit. He informed me that they actually purchase the items from Target rather than the items being donated. However, the Goodwill near my home usually has one or two racks in the front of the store with various Target items (all the same style but in various colors) priced at $1.00 each. I can usually find the childrens’ $1.00 items, which are located at the front of the Target stores priced between 25 cents and one dollar. I usually stock up on these items and give them to charity around the holidays.
The last time that I shopped at Goodwill, they had two racks full of Target maternity items which were priced at $8.00 each which still was a good bargain since they were brand new and with tags!
My Goodwill also prices their Target items higher than Target’s clearance prices. Still good deals, but I won’t buy them out of principle when I know they were cheaper at Target.
When you donate something at goodwill and they ask you if you want a receipt….say yes. There is a coupon on the back for 50% off of one item. At least this is the case at the goodwill in my town.
Where we live the salvation army has target items and we recently purchased a outdoor canopy originally $880 for $125! Talk about a steal!
Last year my husband and I bought a fireplace screen (new, in box) for only $7! This was much cheaper than it was marked down on the target sticker. We’re quite happy with it, as it keeps our 18-month-old away from the fireplace.
This is so interesting to me since my Goodwill claims they BUY these items by the pallet. I’ve been told this since about 2004. I mean they claimed it over & over again. Good to know they were full of it.
I forgot to mention that they were majorly reprimanded for leaving any Target clearance stickers/tags as pictured above on any of their merchandise. I saw it happen a couple of times.
You know, most people here are saying they DO buy it by the pallet – perhaps you should ask the Target manager if you really want to know.
I work at Target and we do sell to Goodwill by the pallet!!!! It’s gets filled at our store, shrinkwrapped, and picked up!
Hey Georgia…our Goodwills here in Central Texas (or at least the Austin area) will no longer be getting Target pallets. 🙁 Do you happen to know if this is everywhere and if so where the pallets will now be going?
Thanks!
I love that Target has a deal for unsold merchandise with Goodwill!! That, & other things will keep me shopping at BOTH places!!
I’m not sure if this is the case at every Goodwill, but the one in my town has set prices for all clothing. So like all shoes are $4, whether they are used and half falling apart or leftover Target clearance. I have big feet so while I usually can’t find regular thrift-store quailty shoes at Goodwill, I do find lots of leftover brand new Target size 11’s…
maybe its just me but my goodwill is ridiculously overpriced, i often see broken figurines from the dollar tree marked at $2 each.
You just have to watch what you’re buying. I’ve picked up some awesome Target deals at Goodwill, but I’ve def. seen the items that are more expensive at Goodwill than at Target. The things I saw this most with was the Christmas items. You can get these for dirt cheap at Target after Christmas, and at Goodwill they are just priced ok. The bottom line is, once it’s made it to Goodwill, you probalby can’t buy it at Target anymore, so if your really want it, paying Goodwill prices is your only option. We just bought a new house and I’ve gotten great deals on handle pulls (cabinate door pulls), bathroom fixtures (towel bars, toilet paper holder), and brand new rugs. The things you’re going to get the best deals on are the opened items. The towel bar I bought was $3 and I saw the exact same one at Target for $17.
I work for Pepsi and am constantly in the backroom of a Target and always see these Gray bins being filled up with stuff they can not sell. When asked what they do with the gray bins, I was told they get thrown away. They had 1 bin full of these blanket throws as well as picture frames and sure enough watched them dump it into the compactor. I even asked if I could take some of the blanket throws home and was told that it is a liability issue.
As for Goodwill, I feel the prices are becoming to costly. I was browsing one day and found these bookends of Gargoyles I liked. Did a quick search online and seen the same exact ones go for $15 dollars, Goodwill was asking $25 and the manger was upset because I was using my Smartphone to check prices.
I agree, some of the Target prices at Goodwill are high. However, Goodwill often runs half price days based on the color of their tags, and then all of a sudden target stuff at Goodwill becomes really affordable. More Goodwill shopping tips here.
The Goodwill ‘s in our area have have changed for the worse(last 2yrs.). As noted ,broken,mismatched,parts missing,overpriced,etc.some prices are ridiculouly high. it would be better if the owners/managers could unify the services and prices. Where are the better organized Goodwills located?
Rae, we have a brand new Goodwill store in our community (Mankato, MN). It’s clean, well-priced and well-managed. We love it!
Goodwills have an agreement with target in which they buy returned or clearance items at 30% of the retail price. Goodwills mark all items they buy from target to 50% of the retail price. So $100 item would be purchased for $30 by goodwill and marked up to $50 even though target had it in clearance for $35.
I don’t think that’s right. Target merchandise that gets salvaged is often up to 90% off retail already. It wouldn’t make sense that Goodwill would pay more for it than any customer off the street.
This does not happen in California!
I’ve been thrift shopping/yard-selling most of my life ( I’m 42) and I go to Goodwill’s, Dirt Cheap, Salvation Army, etc. very frequently and have come to realize they all are over priced on some items. You really have to know your prices. I (now) don’t have to shop resale, but prefer to because I love it, but it does bother me when I see things over priced or the price marked out from the retail store and marked up by the re-seller especially when they are supposed to be stores that sale to one’s whom can’t afford retail.
You’re right, Jennifer – you do have to know your prices.
I make the weekly trek to two of my Goodwills which sell “Mission Goods” or items from Target. The two stores price items differently, it’s just up to their discretion although I know that for higher items they try to price things at 1/2 the price on the white Target sticker you’ll find on the product (not the red & white Target clearance tag price). I VERY SADLY just found out today that they will NO LONGER be getting shipments from Target and will now be getting Mission Goods from WalMart. BOOOOO and TEARS!!! 🙁 (I live in Central Texas by the way and I know that Goodwill does business differently in different parts of the country…I hope that this is only happening here & not everywhere). Sigh…
(this one is just to make sure I get follow-up comment notifications) – grin!
Mid there a way to find out what goodwill stores get the donations? I am looking for a few things that I’d truly love to find .