Why Are Clothes Sometimes Cheaper in Stores Than Online?

[September 2025] – Shoppers often expect online deals to beat in-store prices. But in the garment industry, that’s not always the case. In fact, consumers are increasingly reporting that clothes can be cheaper in brick-and-mortar shops than on brand websites or e-commerce platforms.

Key Reasons

1. Clearance & Overstock Discounts
   Physical stores sometimes need to clear seasonal stock quickly to make room for new collections. Retailers mark down prices more aggressively than online platforms, where stock management is less urgent.

2. Reduced Shipping Costs
   Online shopping often hides or bundles logistics costs like shipping, warehousing, and return handling. Even when shipping is “free,” brands typically build those expenses into the price. In stores, there’s no delivery cost to cover.

3. Dynamic Pricing Online
   Many e-commerce sites use algorithm-driven pricing. Prices may stay higher online if data shows demand remains steady. Stores, on the other hand, rely more on foot traffic and are quicker to discount items to drive sales.

4. In-Store Only Promotions
   Retailers frequently run flash sales, loyalty discounts, or bundle offers that are available only to walk-in customers. These are meant to boost store traffic and clear inventory faster.

5. Consumer Behavior Differences
   Studies suggest shoppers browsing online are often willing to pay a premium for convenience — having the item delivered rather than going out to shop. Retailers take advantage of that willingness by keeping online prices higher.

Industry Insight

Retail analysts note that the online vs. in-store price gap is becoming more visible as brands expand their omnichannel strategies. While online platforms give global reach, physical stores remain a powerful tool for pushing discounts and moving inventory quickly.

For consumers, the lesson is clear: don’t assume online is always cheaper. Bargain hunters are increasingly heading back to malls and outlets to score better deals.