Sale vs. Clearance — What's the Difference?

A sale is a promotional event where retailers offer goods at reduced prices for a limited period, aiming to boost sales and attract customers. On the other hand, a clearance is typically used to permanently remove stock from inventory, often involving significant price reductions to hasten the sale of outdated, overstocked, or soon-to-be discontinued items.

During a sale, customers can expect a wide range of items to be discounted, which may include new and seasonal products. Whereas during a clearance, the items are usually those that have been in the store for a long time or are no longer in season, making the price cuts often steeper than those found in sales.

Sales are strategically planned around peak shopping times such as holidays or end of seasons to maximize customer interest and participation. In contrast, clearance events can occur at any time of the year, as their primary purpose is to clear out inventory space for new products.

While sales may apply to both online and physical store inventories, clearance items are often more heavily discounted in physical locations to physically clear out space. Online clearances, while still significant, might not offer as deep discounts compared to their brick-and-mortar counterparts.

In marketing terms, sales are often highly advertised with significant buzz created through various channels to draw in crowds. Clearances, while also advertised, are sometimes more quietly marketed, focusing on the practical need to empty store shelves and storage areas.