What should I check before buying a kids consignment store?

A kids’ consignment or resale shop runs on a cycle: parents bring in what their children have outgrown and buy the next size up. That cycle shapes what you should look at. The general points in our thrift and consignment guide still apply; these are the extras for a store built around growing children.

The consignor base

Consignors age out of the shop as their children grow, so ask how new ones arrive. Look at the intake records over a full year and ask who brings in the best goods. If a handful of parents supply much of the good stock, find out whether they would stay with a new owner.

Bought outright or held on consignment

Some shops buy goods outright and some hold them for the consignor and share the proceeds. Many do both. Look in the records for how each item is tracked, so ask your lawyer whose goods are held for consignors and what that means for the sale. Our page on changing a consignor split covers what follows.

The consignor ledger

Ask for the ledger of what is owed to consignors and compare it with the goods on the floor. Ask your lawyer how unpaid balances owed to consignors are settled or taken over in the purchase agreement. Have your accountant check that the ledger and the sales records agree.

Seasonal intake

Intake tends to follow the seasons, with spring and fall changeovers bringing in the most. Ask how the owner manages those peaks, what space and staff they take, and how the shop handles items that do not sell.

Rules on second-hand baby gear

Whether rules apply to second-hand children’s products is a question for your lawyer, not something this page can answer. Ask early, because it can change which goods the shop may sell.