I'm lucky enough to have two great kids' consignment stores near me, and I've found some fantastic bargains. Today I bought one of my daughters a Lands' End dress similar to this one (currently selling for $45) for $8. It's in perfect condition and looks like it was never worn, and she loves it. It's easy to see the cost savings associated with buying used clothes (particularly for fast-growing kids), but doing so has environmental benefits as well -- it's a perfect "reuse" scenario.
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