TJ Maxx and Marshalls Yellow Tag: How the Final-Markdown Cycle Actually Works

TJ Maxx and Marshalls (both owned by TJX Companies, along with HomeGoods and Sierra) use a near-identical clearance system. Once you understand it, the random-looking clearance rack starts making sense — and you can predict which yellow tags will drop further versus which are at their final price.

The yellow-tag colors

Original price tags are white. Markdown tags layered on top are yellow, and the color of the printed text on the yellow tag tells you the markdown stage:

Yellow tag, red text

First markdown. Typically 25–35% off the original ticket. There is at least one more markdown coming, sometimes two. Unless you really want the item, wait.

Yellow tag, black text

Second markdown. Usually 50% off. Still has one more drop possible. If sizes/colors you want are present, decent buy — but the next markdown is the deep one.

Yellow tag, purple/violet text

Final markdown. 70%+ off original. After this, the item gets pulled from the floor and sent to Sierra (TJX's deep-clearance sister store) or liquidated. Buy it now or it's gone within the week.

The markdown calendar

Markdowns are not random. TJX corporate sets a schedule and each store follows it:

• Wednesday — the biggest markdown day. Stockroom team prepares overnight, and new yellow tags appear early Wednesday morning. Shop before 11 AM Wednesday for best selection.
• Friday — secondary markdown day for fast-moving categories (clothing, footwear). Smaller stocks but new yellow tags do appear.
• Saturday morning — restock from the back room. Items that sold out earlier in the week sometimes reappear at the same clearance price.

How long between markdowns

An item that hits first markdown (red text) typically progresses every 2–4 weeks. So a piece tagged on the first Wednesday of the month will hit second markdown by mid-month and final markdown by the start of the next month. If you see a red-text tag on something you want but can wait, your patience usually pays off — provided the item is still there.

The trade-off: wait or grab

TJ Maxx inventory is one-time and store-specific. A single store might have one item in your size. If you walk away from a first-markdown yellow tag hoping it drops further, the size you want is often gone by the next markdown cycle. The math:

• If multiple sizes are available → wait for the next markdown
• If only your size remains → grab it; risk of loss outweighs another 25% off
• If purple text is already on the tag → buy immediately, no further drops

Where to focus

The deepest discounts at TJ Maxx/Marshalls cluster in specific departments:

• Shoes — full-price ticket often $60–$120, purple-tag final markdown can land at $10–$25
• Bedding & throws — high markup category, 70%+ off is common on purple tags
• Small kitchen appliances — name brands like KitchenAid, Cuisinart show up as overstock from manufacturers
• Home decor — seasonal items hit purple within weeks of the season ending
• Handbags — biggest markups, biggest final-clearance drops

Sierra: the next stop after purple

Items that don't sell at TJ Maxx/Marshalls' purple final markdown often migrate to Sierra stores (formerly Sierra Trading Post). Prices there can be 80–90% off the original ticket. Sierra has fewer locations, but if there's one near you, it's the final destination for TJX inventory and worth a monthly trip.

The clearance-only run

The most efficient TJ Maxx visit takes about 20 minutes and skips full-price aisles entirely. Walk straight to the clearance racks (usually marked with a sign and shelf), scan for purple text first, then black, then red. Skip white-tag items — they're still at full price and will be cheaper later.

For more retailer-specific clearance breakdowns, see our guides on Walmart markdown timing, Target's clearance code system, and Costco's .97 and asterisk system.

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