Have you overspent on Christmas presents? Are holiday gift cards burning a hole in your pocket? Either way, you can kick off the new year with frugal finesse by knowing which products are ripe for the picking and which discounts may need a little more time to ripen. Here are the products likely to be at their bargain best in January.
Prices on holiday-themed goods take a dive immediately after Christmas and continue to fall throughout January. Early on, prices should be at least half off, and discounts may hit 75% (or more) not long after New Year's — but keep in mind that selection will dwindle the longer you wait.
Mass retailers are always a good bet for holiday clearance. Look to Walmart and Target for blanket discounts on the basics, including shatterproof ornaments and lights. If the shelves are already bare at big-box stores, don't forget department stores such as Macy's, which slash prices on holiday dinnerware and more upscale ornaments and collectibles. Also worth a look are home improvement retailers such as Home Depot and Lowe's for discounts on big-ticket items including artificial trees and inflatables.
In your rush to stock up on ornaments, wreaths, and other more obvious holiday items, don't forget about gift sets. Once January rolls around, retailers will be desperate to get rid of anything in giftable holiday packaging, from makeup and other beauty items to shelf-stable food.
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For sweet deals on sets of lip gloss, eye shadow, and other cosmetics, Ulta should be a particularly good bet, with some prices slashed to half off immediately after Christmas. For lotions, candles, and other sweet-smelling products, look for holdovers from the Bath & Body Works Semi-Annual Sale, a post-holiday staple. And don't forget gift baskets filled with treats that taste good year-round, whether you find them still on the shelves at your local grocery or at a nice discount from specialty retailers such as Harry & David.
Winter clothing is an even better bet in January than Christmas clearance items. Retailers know spring is right around the corner, and shelf space is in short supply. January is a good month to find a broad selection, good sales, and stackable coupons. February and March may see even better deals, but choices will be limited, so this is the time to grab your size at a nice price.
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The best discounts come courtesy of apparel-only retailers, many of which give shoppers a blanket discount on items that are already on sale or clearance. As the month goes on, look for prices to drop sharply on hats, coats, boots, and sweaters at retailers including Gap, Lands' End, and Eddie Bauer. Don't forget about sporting goods retailers such as Dick's and outfitters such as REI — they'll also have plenty of winter clothing to clear.
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While outfitters should offer some nice discounts on regular winter apparel, don't bother looking for bargain-basement deals on anything more technical. January is still peak season for skiing, snowboarding, and snowshoeing, so there's no incentive for retailers to really slash prices on winter sports gear until the season ends. Look for attractive deals starting in March or April.
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Prices on electronics began a downward spiral on Black Friday — that's when TVs typically see the biggest discounts. After huge markdowns in November and December, January brings good deals on smaller electronics including tablets, cameras, and other gizmos. The Consumer Electronics Show takes place early in January, which means last year's models often hit clearance prices in the latter half of the month. One potential exception is laptops, which typically see the best discounts around back-to-school time and during "shopping holidays" like Black Friday.
Always look for the most competitive electronics prices at mass retailers, including Walmart, Amazon, and Target — the first two are especially likely to match each other's discounts on popular buys. Best Buy is also worth a look, especially for more specialized items. Don't forget that specialty retailers such as Dell and Newegg sell more than computers.
January's "white sales" — so named because linens used to come only in white — are historically the best opportunity to stock up on sheets, comforter sets, throws, towels, and similar items, especially if you don't want to wait until significant discounts roll around again over the summer.
Look for deals at any store that sells sheets, but the best selection (and typically the best discounts) is likely to come from cash-strapped department stores including Macy's and JCPenney. You'll also find good deals from online discounters including Overstock, Wayfair, and specialty stores including Pottery Barn and West Elm.
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January is one of the best times of year to buy furniture. That's because new models are released in February, which motivates retailers to start discounting old inventory the month before. Shoppers in need of a new sofa or dining set should plan to buy one in January or February as sales linger through Presidents' Day. (Of course, this is not the time to shop for outdoor furniture — that goes on clearance at the end of the summer.)
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For our money, the best place to look for deals is local furniture stores. Competition is always stiff and you can be reasonably assured your items will make it to you in one piece with local delivery. If you'd rather shop online, check sites including Overstock and Wayfair. And don't forget Amazon, which has its own furniture lines, such as Rivet and Stone & Beam, and boasts a famously streamlined return process, even for larger items.
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Mattresses are rarely good deals in January. Save by waiting until Presidents' Day in February, when mattress sales pop up everywhere for buyers who have more time to shop around and test new beds. Presidents' Day is also a better time to buy small appliances, so put off buying a new coffee maker, microwave, or Instant Pot if you didn't pick one up at a holiday discount.
For deal hunters looking to make good on some resolutions and kick their fitness levels up a notch, home workout gear is a good buy in January. If you're outfitting a home gym, bargain prices on exercise equipment abound. If you'd rather follow along with a fitness video, DVDs and online exercise programs also will be on sale to start the year.
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You're unlikely to find a bargain-basement Peloton bike, but stores such as Walmart usually offer sweet deals on equipment such as treadmills and ellipticals. Specialty home fitness retailers typically have a wider selection, if not the absolute lowest price on a particular model. And don't forget warehouse clubs such as Costco, which boasts competitive prices on exercise equipment throughout the year. (The best deals are usually reserved for members — you can join here.)
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Due to the pandemic, the local gym may have limited access, which may mean very cheap memberships, even in January. If you aren't eager to workout at home, keep an eye on membership deals — and local coronavirus infection rates.
Stick to a resolution to eat better this year with fresh and cheap in-season vegetables, including beets, Brussels sprouts, cabbage, cauliflower, celery, kale, leeks, onions, and parsnips. Add some sweetness with healthy and readily available fruits, such as clementines, cranberries, grapefruit, pears, pineapples, and pomegranates.
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The most popular toys are not deeply discounted in January but look for those based on new movies. For example, Star Wars toys have crowded shelves during the past several holiday seasons as new films and TV series have come out, then gone on sale in January as retailers rushed to clear out merchandise before the movies' popularity waned. Of course, retailers also look to clear out excess stock from the holidays before new toys surface in the spring.
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Look in particular for Target to discount a wide variety of toys up to 70% off by the middle of the month. Walmart and Amazon, the other remaining major toy retailers after the decline of Toys R Us, are also worth a look.
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