Case Study: Creating a Strategy and Linking It to Performance at Kids Cloth, Inc. Kids Cloth (KC) Inc. is a global specialty retailer of clothing, accessories, and personal care products for men, women, children, and babies. With more than 134,000 employees and more than 3,000 stores, the company is also a global player. Most recently, the company has experienced a long slide in sales. KC's trouble in winning back customers has a variety of explanations. In particular, KC's large size has made it tough for the retailer to adapt to changes in fashion trends. KC's casual image hasn't fared well moving from the casualization of the workplace in the 1990's to the recent period of heightened fashion sensibility. KC's turnaround strategy largely consists of three parts: 1) Getting the product and environment right; 2) Cutting costs by simplifying and streamlining operations; and 3) Managing the performance of existing employees, especially those who must use a lot of creativity and innovation in their jobs. With respect to the first part of the strategy (i.e., getting the product and environment right), several analysts seem to like KC's new fall sales offerings, which it is calling the "Elegance Redefined" campaign. KC's new merchandise