June 28, 2001, 12:00 AM

Kids Stuff rebuilds web site

Kids Stuff laid off 40% of its workforce—18 employees—and reduced its catalog circulation as part of a restructuring of catalog and Internet operations.

Kurt Peters

Executive Editor

Kids Stuff Inc. has begun restructuring its catalog and Internet operations, although it is not saying yet what the restructuring will involve. On June 8, Kids Stuff laid off 40% of its workforce-18 employees-and reduced its catalog circulation to 5 million from 8.2 million, although it says it will resume full circulation of its catalog later this year.

In a release this week, CEO W.L. Miller said: "For years we have grown our niche catalogs in the pre-natal to age three market. When the Internet came into being, we did not manage that new marketing force correctly, and we cannibalized our sales accordingly. Now we are going to correct it."

The company says the Internet site has been the fastest growing segment of its business, rising from 3% of sales in 1999 to 20% of sales in 2000. The company says it expects restructuring to be completed and full operations resumed during the fourth quarter.

A spokeswoman says Kids Stuff is working on its restructuring plan and expects to offer more detail by the end of next week.

Kids Stuff operates kidsstuff.com and the Perfectly Safe Catalog of child safety products; The Natural Baby Catalog of natural and organic fiber clothing and diapers and wooden furniture and toys; Jeannie`s Kids Club, which offers discounts to members in return for an annual membership fee; and LittleFeet Catalog, which offers over 1,200 selections and sizes of shoes.

 

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