Keith Tomlins, 66, had nearly £2,000 worth of stolen toothbrushes alone when police raided his rented home in Mountfield Road earlier this month.
The modern-day Fagin had been buying from shoplifters.
Tomlins' flat was stocked with more than £11,000 of consumer goods which he knew had been stolen and which he was ready to sell at car boot sales to boost his pension.
On Wednesday he was called before Eastbourne Magistrates Court where he pleaded guilty to seven charges of handling stolen goods. He could be given a prison sentence.
He also pleaded not guilty to one charge of the same offence.
Alison May, prosecuting, said, "Officers went to his address on March 10 and one officer described Tomlins' one-bedroom flat as being an Aladdin's cave.
"They recovered £5,760 of stolen toiletries, including shampoo and beauty products, £1,828 of toothbrushes and electrical toothbrushes, £733 worth of medicines, including analgesics and cold remedies, £367 of electrical items, including batteries, £961 of razor blades, £1,305 of household items including glue and air fresheners and £451 of suncreams.
"He admitted it was stolen immediately and told officers they had him 'bang to rights'. He said he bought them to sell at a local boot fair and said 'I know it's nicked'.
The police said the haul had all the hallmarks of a professional operation.
Tomlins said he bought the goods in cash and hoped to sell them to supplement his pension.
Justin Rivett, defending, told magistrates, "He used to sell items legitimately at boot fairs for a couple of years but was approached by various individuals who had stolen goods and he succumbed to the temptation.
"He didn't wait to be interviewed before he admitted the items were stolen.
"Clearly at the very least a high community sentence is expected and you may consider a custody sentence."
The case was adjourned until April 11 while the probation service makes an assessment on Tomlins.