What should I check before buying a children’s clothing store?

A children’s clothing store looks like any other clothing shop from the street, but its customers change in a way most retail customers do not. A family that shops for a newborn is buying toddler sizes within a year or two and has moved on a few years later. What follows are the points that set this kind of store apart, so you know where to push in due diligence.

Customers who age out

Ask how the shop finds new families to replace those whose children have outgrown it. Look for a steady source: gift registries, baby-shower trade, referrals, a mailing list or a strong local name. Ask to see the repeat-customer records, if the shop keeps them, and ask your lawyer what you may receive and use about those customers.

Sizes, seasons and buying

Stock in a kids’ shop comes in size runs and seasons, and goods that miss their season are hard to move. Ask how the owner plans orders, what is already on order for coming seasons, and how leftover stock has been handled in the past. A new owner inherits those commitments, so ask to see them in writing.

Brands and supplier terms

Many stores depend on a few brand lines. Read each supplier agreement, or ask the supplier, whether the relationship continues with a new owner, and whether any exclusive territory or minimum order applies. A line that cannot be carried by the buyer changes the shop.

How much rides on the owner

In a small shop, the owner is often the buyer, the stylist and the face regulars trust. Ask how much of the trade follows the owner personally, and what handover period the owner will offer. Our page on counting stock at closing shows a similar process in another trade.