Owner Michelle Barnard opened the Liebig Street store last week in a vacant lot last occupied by woman's clothing store Daizy Boutique, now next door.

Ms Barnard said she noticed a gap open in the city when a former baby clothing store closed in September.

"I spoke to the owner about that, and I thought it's now or never. That's why it came up so quickly," she said.

Ms Barnard first opened the business, called So Little Tiny, 10 years ago in Wallan, north of Melbourne. She made a "sea and tree change" to Warrnambool about 18 months ago.

"We used to holiday down here for years," she said. "I want to be down here more and enjoy it."

The store stocks baby and children clothing up to size eight in a range of brands, some Victorian-made, others made with organic cotton, and a few becoming household names through social media.

The store also stocks accessories such as toys, blankets and hampers for baby showers, new baby arrivals and birthdays.

"Everyone likes buying beautiful things for new babies," Ms Barnard said.

"There was a need in the market for quality products and things that are a little bit different."

She said she loved shopping in Warrnambool and believed the city had "tremendous potential".

"The city is a great place to shop as it has lots of variety on offer. There's a lot of beautiful stores already in Warrnambool and our little store will complement them," she said.

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