Consumer Confidential: Holiday travel, hybrids, teddy bear recall

Here's your three-times-a-lady Thursday roundup of consumer news from around the Web:

-- What's the latest word on the living hell that is Thanksgiving travel? Here you go. About 42.5 million people in the United States are expected to hit the road to visit family and friends, the highest number of holiday travelers since the start of the recession. Travel tracker AAA says that 4% more Americans than last year will journey at least 50 miles from home, with about 90% of them driving. Another 8% plan to fly, but AAA notes that higher airfares and less available seats have forced many would-be fliers to drive instead. The remaining travelers plan to take buses, trains or other forms of transport. Also, those driving should expect to pay more at the pump. The average price of a gallon of gas so far this November is $3.42, up nearly 20% from last year’s $2.86. (Associated Press)

-- For drivers, hybrid vehicles can be a good deal safer than conventional cars. For pedestrians, though, they can be more dangerous because they can sneak right up on you. Occupants of hybrid vehicles sustain fewer injuries in crashes than those who are involved in accidents in non-hybrid cars, according to the Highway Loss Data Institute. The same study says hybrids cause more pedestrian crashes than their non-hybrid counterparts because their relatively quiet operation can make them stealthy on the road. The study suggests the weight of hybrids contributed to a 25% decrease in bodily injuries for those riding in the vehicles. (Los Angeles Times)

-- Heads up: Build-a-Bear Workshop is recalling more than 21,000 swimwear and inner tube sets sold in the U.S. and Canada. The inner tube accessory can be pulled over a small child's head, posing a strangulation hazard. Build-a-Bear received one report of an incident in which a 3-year-old girl pulled the inner tube over her head and had difficulty removing it. The inner tube is part of the three-piece Fruit Tutu Bikini swimwear set for teddy bears, which includes a two-piece fruit-print bikini. The inner tube is nine inches in diameter and pink with white and yellow flowers printed on it. Build-a-Bear Workshop sold the swimwear sets nationwide from April to August for $12.50. They were made in China. (ConsumerAffairs.com)

-- David Lazarus

Photo: There will be more people traveling for Thanksgiving. Enjoy! Credit: Irfan Khan / Los Angeles Times

 

Consumer Confidential: Retail sales, reliable cars, Whole Foods

Here's your takin'-it-to-the-streets Tuesday roundup of consumer news from around the Web:

--We're shopping, and that's good for the economy, but we're in danger of living beyond our means. Retail sales rose in October, suggesting the economy started the fourth quarter with some zip to its stride. Another report showed wholesale prices fell during October as gas prices dropped, signaling a cooling of fuel-driven inflation pressures that have hit consumers' pocketbooks. But analysts say Europe's debt crisis could push the United States back into recession early next year. Moreover, consumer spending is rising faster than incomes, which can't be sustained. What do we need? Jobs. Lot of them. (Reuters)

--Getting a great deal on a set of wheels is one thing. Keeping those wheels running is another. So which cars are cheapest to maintain? Toyota gets the top spot for reliability, followed by Hyundai. The rankings were compiled by auto diagnostic and repair website CarMD, which collects repair data from its network of 3,000 U.S. mechanics. Rounding out the top 5 were Honda, Ford and General Motors, followed by Mitsubishi, Nissan, Kia, Volkswagen and Chrysler. Now you know. (MoneyWatch)

--Whole Foods wants to protect your little fingers while also doing some good for people abroad. The company's new initiative with Comfort the Children and Allegro Coffee allows shoppers to make a direct, positive influence on Kenyan women and special needs children through products called LIFE Jackets. LIFE (Livelihood, Investment, Financials and Empowerment) Jackets are reusable canvas cup sleeves that protect the environment as well as your hands from hot beverages. The total 99-cent cost of each cup sleeve goes straight to Comfort the Children, a nonprofit that helps poor Kenyan mothers with special needs children. Nice. (DailyFinance)

-- David Lazarus

Photo: Shoppers are coming out in force as the holidays approach. Credit: Gary Friedman/Los Angeles Times

 

Wal-Mart reports disappointing third-quarter results

Despite a bump in sales, Wal-Mart Stores Inc. reported third-quarter profits that fell below Wall Street expectations, reflecting continued financial worries among its core low-income shoppers.

For the three months ended Oct. 31, the nation's largest retailer reported a profit of $3.3 billion, or 96 cents a share, down 2.9% from $3.4 billion, or 95 cents, a year earlier. The results were 2 cents below analysts' expectations.

Wal-Mart executives said Tuesday that the retailer was focusing on keeping prices low to attract customers who remain thrifty and pessimistic about the U.S. economy.

Our shoppers "want to save money. They're juggling credit cards, using coupons and skipping restaurants and vacations," said Wal-Mart Chief Executive Michael Duke in a conference call. "There is a real sense that that the economic strain is taking its toll."

The company's low-price strategy did boost sales by 1.3% at U.S. Wal-Mart stores open at least a year, breaking a nine-quarter streak of sales declines for the chain's American stores. Same-store sales are an important measure of a retailer's health because they exclude the effect of store openings and closings.

The Bentonville, Ark., company stumbled in the last few years by removing thousands of products from its shelves in an attempt to de-clutter its stores. In April, the retailer reversed its decision and announced plans to expand its offerings by 8,500 items, or 11%, for an average store.

Looking forward to the holiday, Duke said the company would continue to emphasize competitive prices with a price match guarantee, a layaway program and free online shipping options.

Wal-Mart forecast that fourth-quarter earnings would range from $1.42 to $1.48 a share, while its guidance for the full year would be between $4.45 to $4.51 a share.

Wal-Mart shares had dipped more than 2% in trading Tuesday.

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Toys R Us expands layaway program, offers special online Bill Me Later option

-- Shan Li

Photo: A Wal-Mart store in Los Angeles. Credit: Robyn Beck / AFP/Getty Images

Consumer Confidential: GM probe, Starbucks charge, toy time

Here's your me-and-Mrs.-Jones Monday roundup of consumer news from around the Web:

--Heads up if you drive a GM car. Federal safety regulators are investigating problems with the automatic shift levers on several General Motors vehicles that have caused at least seven crashes. The National Highway Traffic Safety Administration says the probe began with complaints about the Saturn Aura mid-size car from the 2007 and 2008 model years, affecting nearly 89,000 vehicles. But the agency is now checking to see if the problems extend to other GM vehicles. The Chevy Malibu from the 2004 to 2008 model years and the Pontiac G6 from the 2005 to 2008 model years have similar shifting systems, the agency says. GM says it's cooperating with the investigation.

--Starbucks is no longer charging extra for some coffee beans. The company has stopped tacking on a surcharge for bags of coffee beans weighing less than a pound after a Massachusetts consumer-protection agency fined the company over the practice. The Massachusetts Office of Consumer Affairs and Business Regulation found in August that the coffee giant wasn't notifying customers that it was adding a surcharge of about $1.50 for bags of beans weighing less than a pound. That meant beans listed at $11.95 per pound ended up costing $7.45 for a half-pound -- not $5.98, or half the price. Starbucks quietly stopped adding the surcharge nationwide Nov. 7.

--Because it's never too early to think about holiday shopping, here's the word from Toys R Us: The company will kick off its Black Friday sales an hour earlier this year, opening its doors at 9 p.m. on Thanksgiving evening. Toys R Us will be one of several stores opening on the night before Black Friday. Last week, Wal-Mart said it would open at 10 p.m. on Thanksgiving night. Toy deals will include a free $50 gift card with the purchase of any Apple iPod touch; LeapFrog Leapsters for $24.99, marked down 50% from the regular price; 40% off Ultimate Optimus Prime Transformers, which are usually $79.99; and 10 Squinkies packs for $10, which are regularly $2.49 each. And I know I'll get in trouble for asking this, but what's a Squinkie?

-- David Lazarus

Photo: GM cars are being investigated for possible shifting problems. Credit: Jeff Kowalsky/Bloomberg News

Walmart.com tests two pop-up stores in California

Discount giant Wal-Mart Stores Inc. is going mini for the holiday season.

The world's biggest retailer has opened two temporary Walmart.com shops in Southern California aimed at steering shoppers to its website.

Known as pop-up stores, the locations will display a curated assortment of toys and electronics. Shoppers can browse the items, then order them directly from Wal-Mart's website on laptops and tablet computers provided on tables at each store.

"The goal was to give our local customers easier access to the range of products on Walmart.com," spokesman Lorenzo Lopez said. "It's not uncommon for us to test different formats and different offerings in different markets just to learn how customers respond."

One store, located in Canoga Park at the Westfield Topanga mall, is about 1,000 square feet; the other is in downtown San Diego and measures 3,000 square feet. They're a fraction of the size of Wal-Mart Express stores (which average 15,000 square feet) or the behemoth Wal-Mart Supercenters (180,000 square feet).

Although some items such as headphones and 3-D glasses can be purchased on the spot, the tiny formats mean many products are for display only, Lopez said.

Lopez said the goal was to offer a "continuous experience" to customers, integrating the online and offline shopping processes. Customers who order products at Walmart.com can opt for home delivery or for pickup later at a local Wal-Mart store.

The company does not plan to open additional pop-up stores this season, Lopez said. The two stores are scheduled to close at the end of December.

"The emphasis for us is to offer the new format and see how customers react," he said.

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-- Shan Li

Photo: The Wal-Mart logo displayed in Springfield, Ill. Credit: Seth Perlman / Associated Press

Family Dollar to open first California stores

The buck stops here? Family Dollar will open four stores in California Thursday -- their first foray ever into the Golden State.

The shops -- located in Fontana, Riverside, Ontario and Rialto -- mark the first step in a major push into California by the North Carolina company, which plans to open up to 50 new locations in the state by next fall.

"California has been on our radar for a few years, and we finally thought it was the right time given economic conditions," said company spokesman Josh Braverman.

Like other dollar chains, Family Dollar has benefited during the economic downturn as its core customers -- who earn $40,000 or less a year -- tried to stretch their dollars, Braverman said. Middle-income shoppers nervous about the economy have also provided a boost. "Those earning $40,000 to $80,000 a year. These customers may feel like like, 'Where is that double-dip recession, when is that other shoe going to drop?' " Braverman said. "They realize they can come in and save a couple of bucks."

The chain, which operates about 7,000 stores around the country, will first focus on Southern California before venturing north, Braverman said. Each location will hire about 10 employees from the local community.

Family Dollar will face competition from 99 Cents Only Stores Inc., a City of Commerce chain that  recently agreed to be acquired by a Los Angeles private equity firm and the Canadian Pension Plan Investment Board.

But Braverman said there was room enough in California for both chains.

"Competition is not new to us," he said. "We have been able to carve out a niche for ourselves."

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99 Cents Only Stores buyout bid seen as too cheap

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-- Shan Li

Photo: Carolyn Henry Glaspy stocks shelves at a Family Dollar store in Cincinnati. Credit: Michael E. Keating / Associated Press

For Black Friday, Wal-Mart to open at 10 p.m. on Thanksgiving night

Wal-Mart Stores Inc. is planning to get a jump on competitors on Black Friday by opening for the first time ever at 10 p.m. on Thanksgiving night.

The world's biggest retailer revealed its Black Friday plans more than two weeks before the actual day, giving shoppers plenty of time to mull over lists. The shopping kickoff will begin with deals on toys, home and apparel items at 10 p.m. on Thanksgiving day, followed by electronics specials at midnight. Additional deals would be available throughout the weekend.

The discount chain follows other retailers in pushing the opening time earlier on Black Friday, the traditional kickoff to the crucial holiday season. But many others, including Target Corp., Macy's Inc. and Kohl's, have chosen to open at midnight.

“Our customers told us they would rather stay up late to shop than get up early, so we’re going to hold special events on Thanksgiving and Black Friday,” said Duncan MacNaughton, chief merchandising officer of Wal-Mart U.S.

The company has already held on Saturday a sale with items at prices traditionally found on Black Friday.

Among the Black Friday specials announced were men's Wrangler jeans for $9.97 a pair, Bratz and Barbie dolls for $5 each and an Xbox360 with Kinect gaming console for $199.99 (plus a $50 Wal-Mart gift card).

RELATED

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--Shan Li

Photo: A shopper outside a Wal-Mart store in Rosemead. Credit: Don Bartletti / Los Angeles Times

Sears and Kmart roll out virtual shopping walls for toys

This holiday season, Sears and Kmart are testing out shopping walls to empower smartphone owners to buy toys on the go.

The walls, which feature pictures of toys for sale from Sears and Kmart along with a quick response bar code for each item, will be located temporarily at malls, bus shelters, subway stations, airports and movie theaters. While waiting for a bus or browsing the mall this season, shoppers scan a QR code with their smartphone to buy a particular toy right on their device.

"Our goal is to make holiday shopping so simple that customers can find the perfect gift while they are traveling or going about their daily lives," said Julia Fitzgerald, chief digital engagement officer of toys and sporting goods for Sears.

The walls will be available at several movie theaters in the Los Angeles area, including the Regal Long Beach 26, AMC Burbank 16 and the Regal Irvine Spectrum 20.

Virtual shopping walls have already been tested overseas. British grocery giant Tesco has rolled out similar walls virtually stocked with more than 500 popular items at a busy subway station in Seoul, South Korea. On their phones, shoppers can scan and order groceries and other products to be delivered to their doorstep.

RELATED:

New holiday forecasts signal subdued season

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Wal-Mart brings back layaway program for the holidays

--Shan Li

Photo: Denise Vazquez with her son Matthew, 1 at the Sears toys department in the Sears store in Torrance on Oct. 29, 2010. Credit: Lawrence K. Ho / Los Angeles Times

 

Rising gas prices will not affect holiday shopping, poll says

Despite high gas prices, shoppers still plan to spend this holiday season, according to a new poll.

More than half of those surveyed said they plan to shell out the same amount on gifts as they did last year and 8% said they plan to spend slightly more, according to a member poll conducted by the Automobile Club of Southern California, which released it Wednesday.

Still, rising gas prices weigh heavily in the back of consumers’ minds. Seventy percent of Southern California shoppers said that gas cost already has had a significant effect on their household budget.

Gas currently averages $3.82 a gallon in Southern California -– up from a steady $3.10 a gallon during the same period last year.

Months of bad economic news have shoppers concerned, but not the overly cautious that many retailers fear.  Only 16 percent of local consumers said they will spend less this year.  Most cited unemployment, rising housing costs and mounting bills as reasons they were tight-fisted with their money this holiday.

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-- Angel Jennings

Photo: Toke Fusi posts prices at a Shell station in Menlo Park, Calif. Credit: Paul Sakuma / Associated Press

Consumer Confidential: Apple battery fix, pet-food warning

Here's your thunder-road Thursday roundup of consumer news from around the Web:

-- Apple says a fix is in the works for its gadgets' battery woes. The company says there's a problem with its latest mobile operating system that is shortening the battery life of iPhones, iPads and iPods that use the software. A small number of customers have reported lower-than-expected battery life on devices running on the company's iOS 5 operating system. Apple says it's found bugs in the program and will release a software update to address them in a few weeks. The latest iPhone, the 4S, comes with iOS 5. Other devices that can be upgraded to run the software: the iPhone 3GS or 4, iPads and an iPod Touch released in September 2009 or later.

-- Some yucky but important tips: The Food and Drug Administration is warning pet owners that they can get sick from their loved one's food. The agency says it's increasing inspections of dry pet food and pet treats from distributors, wholesalers and retailers. There have been numerous recalls of pet food tainted by salmonella and other contaminants in recent years. While humans usually get salmonella poisoning by eating contaminated food, it's also possible to pick up the disease by handling contaminated pet food. In January 2006, at least 70 people were sickened by salmonella-tainted pet food from a Pennsylvania plant. Government officials say you should wash their hands after feeding your pet. Also, only purchase products (canned or bagged) with no visible signs of damage to the packaging, such as dents, tears or discolorations.

-- David Lazarus

Photo: Apple says a fix is on the way for a battery-sapping software glitch. Credit: Henrik Kettunen / Bloomberg

 

October retail sales up 3.4% at major chains, less than expected

The nation's retailers recorded a moderate increase in sales last month as consumers reined in their spending after splurging on back-to-school shopping and cautiously sized up the coming holiday season.

On Thursday, major chain stores reported a 3.4% sales increase in October compared with the same month a year earlier, according to Thomson Reuters' tally of 23 retailers. The results were below analysts' expectations.

"Some sectors cooled a little bit in October," said Michael McNamara, vice president of research and analysis at data service MasterCard Advisors SpendingPulse. Sales were hampered by unusually warm weather early in the month as well as by heavy snowstorms in the Northeast.

All told, about two-thirds of retailers reported sales that fell below expectations. The worse showing was by teen apparel chain West Seal Inc., based in Foothill Ranch, which posted a 9.7% decline. Struggling apparel giant Gap Inc., operator of the Gap, Banana Republic and Old Navy chains, saw sales drop 6%.

The discount sector had a relatively strong showing as cost-conscious shoppers sought bargains. Costco Wholesale Corp. posted a 9% gain. Cheap but trendy Target Corp. reported a 3.3% rise.

The percentage changes are based on sales at stores open at least a year, considered an important measure of a retailer's health because it excludes the effect of store openings and closings.

 

October is a slow time for merchants as they gear up for the holidays, so is not a good predictor of future consumer spending, analysts say. The National Retail Federation, a trade group, forecasts that sales will rise 2.8% in November and December compared with a year earlier.

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— Shan Li

Wal-Mart to offer early Black Friday deals for one day

For Wal-Mart shoppers, this Saturday may look a little like Black Friday.

The world’s largest retailer will give fans a sneak preview this week at deals normally offered on Black Friday, the day after Thanksgiving.  Wal-Mart, hoping to lure wary shoppers, will hold sales at its U.S. stores on Saturday.

The Nov. 5 sale will start at 11 a.m. and go until midnight.  The event, known as Super Saturday,  will offer deep discounts on televisions, gaming systems and other items.

 Some of the featured items include: Xbox 360 250 GB Console with Kinect for $399 plus a $50 Wal-Mart gift card; tablet book reader Nook Color, sales price $199, originally $249; and a flat-screen LG 47-inch Class LED TV for $698.

On Wednesday, customers can sign up at Walmart.com or the store’s Facebook page to receive an email with the full details of the Black Friday early preview.

This is the first time the retailer has released Black Friday deals this early.

Wal-Mart and other retailers are expecting a particularly tough holiday shopping season, as shoppers remain cautious after months of bad economic news. 

Wal-Mart is releasing the Black Friday specials earlier than usual this year so that shoppers who are watching every penny this season can plan ahead, Duncan Mac Naughton, the company's chief merchandising officer, said in a statement.

Some analysts said this early-bird special might attract some customers who would have stayed home otherwise. But don’t expect the large crowds and mayhem typical of Black Friday.

Britt Beemer, founder of America’s Research Group, said consumers have grown to expect certain things during Black Friday shopping, such as limited quantities and early morning shopping.

“When you don’t have those issues and ingredients, it’s just a pre-Christmas sale,” he said.

Other retailers have already announced their own Black Friday plans as they seek more shoppers. Macy’s and Target announced they will open at midnight on the night before Thanksgiving.

RELATED:

Wal-Mart announces women-friendly initiatives

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Wal-Mart brings back layaway program for the holidays

-- Angel Jennings

Photo: A shopper outside a Wal-Mart store in Rosemead. Credit: Don Bartletti / Los Angeles Times

 

Consumer Confidential: Cellphone taxes, 401(k) matches, beer sales

Here's your watching-the-detectives Wednesday roundup of consumer news from around the Web:

--At least your cellphone bill may hold steady. The House has approved a five-year freeze on any new state and local taxes imposed on cellphones and other wireless services, including wireless broadband access. The voice vote reflected a consensus that new taxes on wireless mobile services have far outpaced average sales taxes on other items and have become a deterrent to the spread of wireless broadband technology. Wireless customers reportedly now pay 16.3% in taxes and fees, more than double the average rate of 7.4% on other goods and services. The bill prohibits state and local governments from imposing so-called discriminatory taxes on mobile services, providers or cellphones for five years.

--Some more good news: Most of the companies that either suspended or reduced their 401(k) matches during the economic downturn have reinstated them, according to business consultant Towers Watson. An analysis of 260 mid- to large-sized companies shows that 75% of those that took the step to cut costs have restored their match. Among those, about 74% are continuing the match at the previous level. About 23% brought matches back at a lower rate. Among these companies, the reinstated match was slightly more than half of their original contribution. Just 3% restored matches at a higher rate. I wonder what companies those are.

--But here's a sign that times are still tough: We're not chugging as much brewski. MillerCoors, the country's second-largest brewer, says its third-quarter net income fell 14.1% due to a weak economy, low consumer spending and higher commodity costs. The combined U.S. operations of SABMiller and Molson Coors Brewing, which make Miller and Coors brand beers, said underlying net income in the July-September quarter slipped to $286.9 million, while net sales were down 2.5% at $1.965 billion. The brewer has a U.S. beer market share of nearly 30%, behind Budweiser brewer Anheuser-Busch InBev's share of almost 50%. So do your bit for the economy and hoist a few.

-- David Lazarus

Photo: Lawmakers want to hold cellphone taxes steady for five years. Credit: Jason Alden / Bloomberg

Consumer Confidential: Scary candy sales, be safe, Black Friday

Here's your mad-dogs-and-Englishmen Monday roundup of consumer news from around the Web:

-- So how much candy will be doled out tonight for Halloween? The answer is $2.3 billion worth, according to the National Confectioners Assn. That's up about 1% from last year. The Census Bureau says the average American consumes about 25 pounds of candy every year. Some other fun facts: There are an estimated 41 million potential trick-or-treaters in 2010 -- children ages 5 to 14 -- across the country. The average jack-o'-lantern bucket holds about 250 pieces of candy, amounting to about 9,000 calories and about three pounds of sugar. Most U.S. children consume between 3,500 and 7,000 calories from candy on Halloween. Finally, candy companies produced about 35 million pounds of candy corn this year. That's a truly scary figure.

-- How to make the holiday safer? Here's some advice from the experts at the Food and Drug Administration and the Consumer Product Safety Commission: Choose flame-resistant costumes. Homemade costumes should be made out of flame-resistant fabrics, like polyester or nylon. Wear bright colors or costumes with reflectors to ensure being visible in the dark. Also, to avoid tripping, make sure costumes aren't too long. Avoid masks -- they can make it more difficult to see properly. Replace them with makeup and hats. Test makeup. Put a small amount of costume makeup on one arm about two days before dressing up.

-- Black Friday comes earlier and earlier. Macy's is planning its earliest start ever to the holiday shopping season by opening many of its U.S stores at midnight on Thanksgiving night. Target announced a similar move last week, setting the stage for what is likely to be a competitive holiday season for U.S. store chains. The National Retail Federation says U.S. retail sales should rise 2.8% in November and December, excluding cars, gas and restaurants. Store hours can vary by chain and by location, but last year most chains opened their doors at 3 a.m. or 4 a.m. on the day after Thanksgiving.

-- David Lazarus

Retail Roundup: Wal-Mart price-matching, Black Friday at Target, BAM opens bookstores

-- In advance of the all-important holiday season, Wal-Mart Stores Inc. announced a price-matching program to guarantee that shoppers will snag the best deal on many items purchased at the world's biggest retailer.

Between Nov. 1 and Dec. 25, shoppers who buy an eligible product at the discount chain, then later find the same item for a lower price elsewhere, will be issued a gift card for the difference. To get the price match, consumers are required to bring in the original receipt and the local competitor's printed ad to a Wal-Mart store.

Items on layaway will be eligible, but the offer excludes some products, such as groceries and prescription drugs. Black Friday and online ads from competitors also won't be counted.

-- Target Corp. said its stores will open at midnight on Black Friday, its earliest opening time for the day after Thanksgiving.

Retailers jumpy about the economy and eager to court shoppers have increasingly pushed the opening hours ever earlier on Black Friday, traditionally the kickoff to the holiday shopping season. Target also announced extended store hours throughout the season, including on Christmas Eve and the day after Christmas.

-- A win for paper books? Books-A-Million Inc. announced plans to open 41 stores in early November, some in retail spaces left empty by the bankruptcy and liquidation of its rival, Borders Group Inc., based in Ann Arbor, Mich.

But it's not all rosy for Birmingham, Ala.-based BAM -- the chain recently closed 21 underperforming stores and has about 200 shops still open. Compare that to Borders, which at its peak in 2003 had more than 1,200 bookstores operating around the country.

Times are certainly changing for the book business. Sales of e-books in America finally surpassed those of adult hardbacks in the first five months of the year, and online retailer Amazon.com reported that it sells more digital books than ones printed on paper.

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-- Shan Li

Photo: A shopper leaves a Target store in San Diego. Credit: Jack Smith / Bloomberg News

Female Wal-Mart employees file new suit in California

A few months after the Supreme Court tossed out a massive class-action lawsuit against Wal-Mart Stores Inc., women who say they faced discrimination from the world's biggest retailer filed an amended suit in California.

The lawsuit, announced Thursday, narrows the scope of the lawsuit from all female employees who are working or have worked for Wal-Mart and its Sam's Club warehouse stores (about 1.5 million people) to just those in California (about 90,000), Reuters reported.

The suit alleges that the company systematically discriminated against its women workers, denying them promotions, pay bumps and other work advances because of their gender, the report said.

Attorneys for the plaintiff said at a news briefing that the California action would be the first suit of several to come in the next half-year.

"We are beginning with the locales where the evidence of discrimination is strongest," lawyer Joseph Sellers said, according to Reuters.

When the Supreme Court ruled in June to throw out the huge class-action lawsuit, it did not make a decision on whether women had been discriminated against. Instead, it determined that the plaintiffs in the case, spanning a multitude of jobs in thousands of stores nationwide, were not similar enough to be combined into one suit. But that left the door open for smaller, more targeted complaints against the company.

Theodore Boutrous Jr., attorney for Wal-Mart, said in a statement that the suit depends on arguments that the Supreme Court had already dismissed.

"The Supreme Court rejected these very same class-action theories when it reversed the plaintiffs' lawyers' last effort in June," he said.

RELATED:

Wal-Mart announces women-friendly initiatives

Wal-Mart brings back layaway program for the holidays

Consumer Confidential: Toys R Us hiring; Wal-Mart gets sunnier

-- Shan Li

Photo: A shopper outside a Wal-Mart store in Rosemead. Credit: Don Bartletti / Los Angeles Times

U.S. consumers: Depressed, but still spending

Consumer confidence this month dived to levels last seen in March 2009, at the depths of the recession. But some analysts are pointing to the disconnect between the talk and the walk.

“There has been a break between what consumers are saying and what they are doing over the past few months,” wrote Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities, in a research note Tuesday.

The Conference Board’s confidence index has plunged to 39.80 from 59.20 in July, “but consumer spending has continued to expand at a decent pace,” Riccadonna said. “Retail sales were up 7.9% year-on-year in September and unit motor-vehicle sales are running at the fastest pace since April.”

What about October retail sales?

“Two key metrics of same-store sales reported gains of +2.4% and +4.1% in the latest week (compared to year-ago levels), and this is consistent with further forward momentum for consumers,” Riccadonna wrote. “In short, the divergence between attitudes and spending continues.”

Let’s face it: Nobody feels good about this economy, so if asked for survey purposes it isn’t surprising that people would sound downbeat. But in many households, wallets still are open.

Interestingly enough, 45.9% of the respondents in the October confidence survey said they planned to buy a major appliance in the next six months, up from 40.8% in September.

Eleven percent plan to buy a car, down slightly from 11.1% in September. And 50% plan to take a vacation within six months, up from 46.9% in August (that question wasn’t asked in September).

The risk is that the dismal confidence report could feed on itself, encouraging more consumers to cut back whether they feel the need or not.

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Consumer confidence plunges to 2009 levels

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-- Tom Petruno

twitter.com/tpetruno

Photo: A shopper in New York this month. Credit: Paul Taggart / Bloomberg News

Consumer Confidential: Netflix down, food prices up, masks recalled

Here's your turn-the-beat-around Tuesday roundup of consumer news from around the Web:

-- Netflix is still smarting from its screwups. The company's shares plunged 35% after the one-time Wall Street favorite revealed a massive departure of subscribers angered by price increases and other questionable changes at the rental service that was created to make entertainment a snap. Netflix revealed late Monday that it ended September with 23.8 million U.S. subscribers. That's down about 800,000 from June and worse than what the company had hinted at before. In September, the company predicted it will lose about 600,000 U.S. customers. And it may get worse. Netflix said it expects more defections in coming months. Clearly this company better come up with some good news, and soon, or more people will jump ship.

-- Your grocery bill is still going up. The government says food prices are expected to climb by as much as 4.5% this year, an increase of one-half of a percentage point from its prior forecast, as higher commodity costs continue to filter down to consumers. The estimate comes after months of increases in individual items, particularly meat and poultry. Pork and beef prices have soared to record highs this year as surging export demand, particularly from China, has driven prices higher even while domestic demand remained sluggish. A jump in grain prices, which increases the cost of feeding livestock, has driven the broader jump in food prices this year.

-- Heads up: There's a recall of Halloween masks. Target is recalling about 3,400 children's frog masks because they lack proper ventilation. When secured in place across a child's face, the mask poses a risk of suffocation. The Chinese-made masks were sold at Target outlets nationwide from August through September for about $1. If you bought one, return the mask to any Target for a full refund.

-- David Lazarus

Photo: Netflix is getting slammed by investors for losing subscribers. Credit: Paul Sakuma / Associated Press

 

Consumer Confidential: Thomas the Tank Engine bought, Harley recall

Here's your maybe-baby Monday roundup of consumer news from around the Web:

—Thomas the Tank Engine, meet Barbie. The company behind everyone's favorite talking train, Hit Entertainment, is being purchased by El Segundo's Mattel for $680 million in cash. Mattel already markets many Thomas & Friends die-cast and plastic toys under a license that extends until 2014. Global sales of those toys are more than $150 million. Mattel says the deal will help combine its own global marketing and distribution capabilities with Hit Entertainment's global programming and licensing expertise. For those without small ones at home, Thomas the Tank Engine is a popular British children's television series that has spawned a variety of tie-ins and toys.

—Wal-Mart has your number ... at least when it comes to prices. The world's largest retailer is announcing a new strategy that it hopes will pull in procrastinators early by giving them a big incentive: a guarantee that they'll get the lowest price no matter when they buy during the holiday season. Wal-Mart says it will be matching prices on many of its products. Shoppers who buy something at a Wal-Mart store between Nov. 1 and Dec. 25, but then find the identical product elsewhere for less, can get a gift card in the amount of the difference. The offer excludes merchandise bought on Wal-Mart's website and some other products, such as groceries.

—Heads up, hog riders: Harley-Davidson is recalling about 308,000 motorcycles to fix a switch problem that can cause failure of the brake lights and possibly even the rear brakes themselves. The company says in documents filed with the National Highway Traffic Safety Administration that brake light switches can be exposed to too much heat from the exhaust system. The heat can cause the brake lights to fail, and the problem also can cause fluid leaks and the loss of rear brakes. The problem affects Touring, CVO Touring and Trike motorcycles from the 2009 through 2012 model years.

— David Lazarus

Photo: Thomas the Tank Engine has a new daddy. Credit: BayBritt Allcroft

Retail roundup: Mattel vs. MGA, Versace for H&M, salad recall

-- A federal judge granted Mattel's request to dismiss rival MGA Entertainment's antitrust suit against the toy giant. The two Southern California toy makers have been embroiled in a years-long dispute over ownership of the Bratz doll line and have accused each other of stealing trade secrets.

In the separate Bratz case, a Santa Ana jury in April sided with MGA; U.S. District Judge David O. Carter later awarded MGA more than $309 million in damages, fees and other costs. Mattel has filed a notice to appeal in that case.

In throwing out MGA's antitrust lawsuit this week, which the toy maker filed alleging anti-competitive practices by Mattel, Carter said the case was too similar to prior litigation, according to the Associated Press. 

-- H&M, which announced earlier this year that it would partner with Versace for its next designer collection, this week released the line's lookbook and other details.

The collection will be available in more than 300 stores next month and will focus mostly on apparel for men and women. The trendy fast-fashion retailer also said that the line would be the first time an H&M designer collaboration would include homeware pieces. 

"Dominated by colour, print and cut, the brand’s creative director Donatella Versace has gone back to the archives to bring some Versace classics to a whole new audience," H&M said in a statement. "Iconic dresses are the focus of the women’s collection, while menswear is centered on sharp tailoring."

My colleague Booth Moore from our Image section has her take on the collection here, as well as more photos. 

-- Taylor Farms Retail Inc. is voluntarily recalling 3,265 cases of salad blends that could be contaminated with salmonella after a random test conducted on a finished package of spinach by the State of Washington Department of Agriculture, the U.S. Food and Drug Administration said.

The products were distributed in several states including California, Arizona and Colorado and sold in various supermarkets. There have been no reported illnesses attributed to the recalled items, the agency said.

Customers who have purchased the products, listed here, are urged to not consume the products and should dispose of them. 

RELATED:

Haute couture and discounters walk down the aisle

Mattel's profit climbs 6.2%

Seasonal holiday hiring expected to stay flat

-- Andrea Chang

Top photo: MGA's Bratz doll line. Credit: Christina House / For The Times. Bottom photo: Donatella Versace, seated, at a model fitting for the upcoming Versace for H&M collection. Credit: H&M