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Category: David Lazarus

Real Estate | Autos | Consumer | Economy

Consumer Confidential: Confidence slips, Sonic's low price, Martha gets a comic

Wonderpic Here's your flash-in-the-pan Friday roundup of consumer news from around the Web:

--Feeling gloomy? You're not alone. Consumer confidence dropped more than forecast in June as households coped with higher prices and slowing job growth. Though gasoline costs have retreated from the highest levels since July 2008, consumer budgets are being strained by rising prices for other goods and services. Unemployment climbed in May to the highest point this year, and employers added the fewest workers in eight months, further stressing the largest part of the economy. Consumer expectations for six months from now, which more closely project the direction of consumer spending, also show a decline.

--Just in time for such economically anxious times, General Motors says pricing for its new Chevy Sonic will start at just under $15,000 when the sub-compact car hits dealer lots this fall. Base models of the 2012 Sonic will start at $14,495, excluding tax, title, license and dealer fees. Its standard equipment includes 10 airbags, power door locks, remote keyless entry and 15-inch alloy wheels. The car will come in both sedan and hatchback body styles. The hatchback version of the Sonic will start at $15,395, while pricing for the sedan and hatchback versions of the more upscale Sonic LT will begin at $15,695 and $16,495, respectively, GM says.

--Move over, Wonder Woman. The newest comic-book heroine is none other than domestic diva Martha Stewart. "Female Force: Martha Stewart," a one-shot issue from Bluewater Productions, will focus on how Stewart rose to become one of the nation's best-known purveyors of home decor, cooking and practical living. It's the latest in a line of titles from the Vancouver, Wash.-based publisher, with previous subjects in the "Female Force" family of titles focusing on Hillary Rodham Clinton, Michelle Obama, Barbara Walters, Sarah Palin and Margaret Thatcher. Publisher Darren G. Davis says the comic will look at all sides of Stewart, including her rapport with fans as well as her conviction on insider trading. Superheroes, after all, need flaws to be believable.

-- David Lazarus

Photo: But will Martha Stewart have a magic lasso? Credit: DC Comics

 

Consumer Confidential: Citi hack grows, Chrysler issues recall, IBM turns 100

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

--I was carping last week about how Citigroup wasn't being forthcoming about the scope of a recent hack attack. Well, the financial giant has some more info to share ... and it isn't good. Citi now says the hack job in May affected almost twice as many accounts as the bank had initially suggested. A total of 360,083 North American Citigroup credit card accounts were affected by the breach. Some 217,657 customers were reissued new cards along with a notification letter, while the remaining accounts were either inactive or had already received new cards earlier. Citigroup had earlier said that about 200,000 North American accounts were affected. Customers had their names, account numbers and contact information accessed, but Citi said that "data critical to commit fraud was not compromised" and that other consumer banking online systems were not accessed.

--Today's auto recall (collect them all): Chrysler is recalling about 11,350 cars, minivans and other models because a manufacturing problem can cause the steering to fail. The recall affects 11 of the 20 models Chrysler has on sale for the 2011 model year. A missing or incorrectly installed rivet could cause a loss of steering, increasing the risk of a crash. Recalled vehicles include the Chrysler 200 midsize sedan and convertible, and Town and Country minivan; the Dodge Avenger midsize sedan, Caliber compact car, Caravan minivan, Journey crossover vehicle and Nitro SUV; and the Jeep Compass wagon and Patriot, Liberty and Wrangler SUVs. The vehicles were built from mid-April to the middle of May. Dealers will check to make sure the rivet was installed correctly and make repairs free of charge.

--Happy birthday, IBM. International Business Machines has turned 100. The tech giant, which basically made possible the likes of Google and Facebook, dates to June 16, 1911, when three companies that made scales, punch-clocks for work and other machines merged to form the Computing Tabulating Recording Co. The modern-day name followed in 1924. With a plant in Endicott, N.Y., the new business also made cheese slicers and -- significantly for its future -- machines that read data stored on punch cards. These days, IBM isn't as much of a going concern, at least in cutting-edge tech circles. But considering the short-short lifespans of today's silicon leaders, it's pretty remarkable that Big Blue has lasted so long.

-- David Lazarus

Photo: Citigroup now says thousands more customers were hit by hackers. Credit: Daniel Acker/Bloomberg

 

Consumer Confidential: Wednesday night's alright for shopping; booster seat recall

Marketpic Here's your I'm-a-girl-watcher Wednesday roundup of consumer news from around the Web:

--When's the best day to hit the supermarket? Wednesday. At least that's what Lifehacker.com says. The website observes that supermarkets tend to reduce prices in the middle of the week on items that are expiring soon. It found this to be true in stores located in Arizona, California, Colorado and other Western states, and in grocery stores throughout San Francisco. MyGroceryDeals.com supported this conclusion, saying Wednesday is a hot day to buy groceries. The site also recommends shopping in the evening, or a couple of hours prior to closing, when perishables are typically reduced for quick sale.

--Heads up: Target is expanding its recall of Circo child booster seats due to additional reports of falls involving children. In some booster seats, the belt buckle opens unexpectedly, allowing a child to fall from the chair, the retailer says. Target has received 10 additional reports of booster seat buckles opening, including three reports of bumps and bruises when a child toppled out and hit an object or the floor. The seats, which were manufactured in China, were sold at Target stores nationwide from January 2005 to June 2009. The recall involves about 375,000 seats, including the 43,000 recalled in August 2009. They can be returned to any Target outlet for a full refund.

-- David Lazarus

Photo: For the best deals, hit the supermarket on a Wednesday, two websites say. Credit: Lawrence K. Ho / Los Angeles Times

 

Consumer Confidential: Used cars getting cheaper; ditto (maybe) for food and gas

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

-- If you're in the market for a used car, the tide may be turning in your favor. After rising much of the year, used-car prices may have peaked -- especially for small, fuel-efficient models -- thanks to an easing of gas prices. Since the start of the year, used-car prices for compacts rose $2,200, or an average of 22%. Hybrids went up $3,000, or 20.4%, according to Kelley Blue Book. If gas prices hold steady or fall slightly, Kelley predicts used-car prices will fall up to 5% more by the end of the summer. They'll fall more if gas prices fall below $3.50 per gallon nationally. Even with the decline, Kelley is urging smart buyers to hold off making a purchase until the end of summer, when prices are likely to fall back to normal levels.

-- And used cars may not be the only thing coming down in price. Wholesale food prices dropped last month by the most in a year, suggesting that the prices we see at the supermarket may be on the way down as well. Fruit and vegetable prices led the declines. Tomatoes plummeted 47%, the most since last June. Spinach prices dropped 48% and watermelons fell 74%. Meanwhile, gas prices at the wholesale level rose by the smallest amount in eight months. Consumers had been paying an average of nearly $4 for a gallon of gas in early May. On Monday, the national average was $3.70 a gallon, according to AAA. Still, that's a dollar more than what consumers paid a year ago. Analysts think the economy will regain momentum in the second half of this year if gasoline prices fall further.

-- David Lazarus

Photo: Used-car prices may be easing. Just ask Cal Worthington's dog, Spot. Credit: Screen grab

Consumer Confidential: Pie chain goes bankrupt, Timberland bought, Arby's sold

Piepic Here's your make-my-day Monday roundup of consumer news from around the Web:

--Some bitter-tasting pie: Restaurant owner Perkins & Marie Callender's has filed for bankruptcy protection, brought down by tough competition, the weak economy and rising food costs. The owner of the Perkins Restaurant & Bakery and Marie Callender's chains says it plans to close 65 stores and cut 2,500 jobs, or about 20% of its work force of 12,350. The company cites the weak economic climate, particularly in California and Florida, where many of its restaurants are located, for the bankruptcy filing. Documents filed with the U.S. Bankruptcy Court in Delaware indicate the company can't afford to build new restaurants and upgrade existing ones, so it loses traffic to better-funded rivals. The two chains were "adversely affected by the languishing economy, including declines in consumer confidence and sluggish consumer spending and increased commodity costs," CEO J. Trungale said in a statement in November.

--Timberland has a new daddy. The purveyor of outdoorsy shoes and duds is being acquired by VF Corp., whose brands include Wrangler denim and Nautica apparel, for about $2 billion. Eric Wiseman, chairman and CEO of Greensboro, N.C.-based VF, calls the acquisition "transformative." VF's outdoor and action-sports businesses will now comprise 50% of total revenue and are expected to hit 60% by fiscal 2015, Wiseman says. The company's other brands include 7 For All Mankind premium denim, John Varvatos men's clothing and Reef surf gear. Its outdoor and active brands include Vans, Lee and North Face, and the company says Timberland will be complementary to, rather than competitive with, those names. I've always liked Timberland's gear. If only it weren't so darned expensive.

--Adios, Arby's. Wendy's/Arby's Group says it will sell a controlling stake in its Arby’s restaurant chain to Roark Capital Group for $130 million. Atlanta-based Roark will also assume $190 million in debt with the acquisition. Arby’s, which has has 3,600 outlets across the United States, will now focus on new menu items, new breakfast fare and new-look restaurants. Roark specializes in brand management of restaurant companies. The group also has stakes in Atkins Nutritionals, Auntie Anne’s, Cinnabon and Moe’s Southwest Grill. Last month, California Pizza Kitchen agreed to a $470-million buyout by Golden Gate Capital, and groups are reportedly circling Sbarro, the recently bankrupt pizza chain.

-- David Lazarus

Photo: Pie maker Marie Callender's has filed for bankruptcy protection. Credit: Allen J. Schaben / Los Angeles Times

 

Consumer Confidential: Working into our 80s; Cadillac recall announced

Chairpic Here's your fashion-plate Friday roundup of consumer news from around the Web:

-- Hope you love your job, because you might have to work it longer than you think. A new study from the Employee Benefit Research Institute says many Americans will have to keep on working well into their 70s and 80s to afford retirement. It's worst for low-income workers. Those who earn an average $11,700 per year would need to defer retirement until age 84 before 90% of those households would have just a 50% chance of affording retirement. Those who earn between $11,700 and $31,200 will need to work until age 76 to have a 50% chance of covering basic expenses in retirement. Those who earn between $31,200 and $72,500 will need to work to age 72 to have a 50% chance, and those who earn more than $72,500 get to stop working at age 65 to have a 50/50 chance of funding their retirement. What can you do? Save more, obviously. But also set aside those dreams of spending your sunset years kicked back on the beach. Chances are, ain't gonna happen.

-- Heads up: General Motors is recalling about 50,500 Cadillacs because the front-passenger airbag does not work as intended. The recall affects 47,401 vehicles in the United States, with the remainder in Canada and Mexico. GM says there are no reports of crashes or injuries related to the issue. The recall covers 2011 Cadillac SRXs in North America because that is where the automatic occupant-sensing system is used. Export models use a key to disable the passenger-side airbag. GM says the SRX is programmed to turn off the passenger-side, roof-rail airbag when it detects an occupant in the front passenger seat. But the owner's manual says the airbag will deploy whether or not the seat is occupied. The mismatch violates federal safety standards.

-- David Lazarus

Photo: Can't talk now, honey. I'm late for work. Credit: Just Home Medical

Consumer Confidential: Citi gets hacked, SUVs get safer, Gap gets smaller

Citipic Here's your throat-clearing Thursday roundup of consumer news from around the Web:

--Add Citigroup to the ever-growing list of companies who can't keep our personal info safe from hackers. The company says hackers breached the bank's network and accessed data on hundreds of thousands of bank card holders. It says about 1% of its card customers were affected by the breach, which a report in the Financial Times says had been discovered in May during routine monitoring. The names of customers, account numbers and contact information, including email addresses, were viewed, Citi says. However, it says other information such as birth dates, Social Security numbers, card expiration dates and card security codes were not compromised. I'll have more on hack attacks in Friday's paper.

--SUVs aren't so safe, right? Wrong, apparently. Sport utility vehicles are emerging from a long period of scrutiny with design and other changes that have markedly improved safety. Influenced by deadly Ford Explorer rollovers linked to defective Firestone tires a decade ago, SUVs now sit lower on car frames -- not truck platforms -- and are equipped with stability technology that has cut down on the worst accidents. "Drivers of today's SUVs are among the least likely to die in a crash," the Insurance Institute for Highway Safety says in a report. "With the propensity to roll over reduced, SUVs are on balance safer than cars because their bigger size and weight provide greater protection in a crash." Size and weight, however, don't add up to better fuel efficiency. Just saying.

--Fall into the Gap ... if you can find one. Gap Inc. plans to close 200 stores within two years. The San Francisco-based clothing chain will reduce its U.S. store count to 700 by 2013, says Glenn Murphy, the company's CEO. The company did not release a list of specific stores it would close. Gap has more than 3,200 stores worldwide. "I think we’ve lost our edge here a little bit," Murphy says. "We’ve been tapping at the edges of Gap brand in North America. That’s not good enough. We need significant change -- first in product, then in stores." He says Gap will shift from being primarily a specialty retailer in North America to being more of a value player. I don't know what that means, but if it means the company will start focusing again on cool, classic duds, I'm in.

-- David Lazarus

Photo: Citigroup is the latest company to get hacked. Credit: Daniel Acker / Bloomberg News

 

Consumer Confidential: Vote set for debit-card fees; investors worry about Wii

Here's your west-end-girls Wednesday roundup of consumer news from around the Web:

-- The battle over debit-card fees is reaching a climax. The Senate is scheduled to vote Wednesday on whether to block the Federal Reserve from capping fees that stores pay banks every time a shopper swipes a debit card. At stake is whether to slash the $16 billion the Fed says merchants pay banks and credit card companies for the 38 billion times consumers use debit cards annually. The Fed says the fees average about 44 cents per swipe, which under a proposal the central bank unveiled last year would be capped at 12 cents. Last year's financial overhaul law ordered the Fed to issue a rule that will take effect on July 21. The Senate vote will be on an effort to delay the regulations for a year and order the Fed and three other agencies to study whether the proposal is fair. Each side claims to have consumers' interests at heart. Merchants say current fees, typically 1% to 2% of the purchase, push their prices higher. Banks say the Fed proposal discounts overhead costs like preventing fraud. Consumer advocates tell me that the actual cost of processing a transaction is closer to a penny, so I think banks would do just fine with a 12-cent cap.

-- Wii'll be seeing you. The stock of Wii maker Nintedo took a tumble after investors were underwhelmed by the company's new gaming console. The demonstration of a prototype at the Electronic Entertainment Expo in Los Angeles on Tuesday left the money crowd disappointed and skeptical. Analysts say it's unclear how successfully the machine would compete against smartphones and tablet PCs. The Japanese gaming giant behind Pokemon and Super Mario says the Wii U will broadcast high-definition video and feature a touch screen controller that can detect motion. All I know is that my kid, a Wii junkie, thinks the new system looks cool. But he has yet to take one for a test drive.

-- David Lazarus

What's wrong with paying by credit card? [video]

 

Anthem Blue Cross has notified its customers that credit card payments will be discontinued, and consumer columnist David Lazarus asks why. Those who want to keep paying with credit cards will have to call a service rep and be charged a $15 'convenience fee.' As David writes in his column today, "Anthem is doing away with a practice that most other businesses prefer for its customers' convenience and guaranteed payments."

Find more columns by David Lazarus here.

--Pat Benson

Consumer Confidential: Flying iPads, Nintendo hacked, Batman begins again

Batpic Here's your more-more-more Monday roundup of consumer news from around the Web:

-- Fly the friendly iPad? British Airways is experimenting with handing out iPads for in-flight entertainment. The carrier has already begun trials of the iPad on selected Boeing 777 services as an alternative to the portable DVD players currently issued to first-class passengers. Late last year, Finnair began offering its premium passengers the use of an iPad on flights between Helsinki and Hong Kong. The tablets were preloaded with content including newspapers, magazines, movies and TV shows, music and games. Apple's touchscreen tablet is even finding its way into the cockpit, with Qantas investigating the use of the iPad as a replacement for bulky flight manuals.

-- First Sony, now Nintendo. The Wii maker said it was targeted in a recent online data attack but that no personal or company information was lost. The server of an affiliate of Nintendo's U.S. unit was accessed unlawfully a few weeks ago, but a spokesman said there was no damage. The damage was more serious at Sony. It says a huge amount of confidential info, including email addresses, names and birth dates, and involving more than 100 million users, is suspected of having been stolen after security was compromised in April for its network service for the PlayStation 3 game machine. It is still unclear who is behind the attacks at Sony and Nintendo.

-- If you're a comics collector (like I was and my son is now), some potentially big news: DC Comics is taking its flagship "Detective Comics" back to No. 1 at the end of the summer, part of its push to renumber all of its superhero titles and give the characters new looks, new attitudes and a contemporary feel. This is kind of a big deal because No. 1 issues have more cachet as collectibles (even thought it was "Detective" No. 27, in which Batman made his debut in 1939, that sold last year for more than $1 million). DC says it also will renumber its ongoing monthly "Batman" comic at No. 1. The company is launching 52 titles at No. 1 in September. DC has published "Detective Comics" every month since 1937 and is up to issue 877.

-- David Lazarus

Photo: DC's "Detective Comics" is starting over again. Credit: Associated Press

 

Consumer Confidential: Big Business casts long shadow online; National Doughnut Day

Simppic Here's your frankly-my-dear Friday roundup of consumer news from around the Web:

-- For most Web surfers, the fear isn't that Big Brother is looking over their shoulder. It's Big Business. USC's Center for the Digital Future finds that nearly half of Internet-connected Americans age 16 and older worry about businesses checking what they do online. By comparison, 38% worry about the government doing so. Even so, the center's study finds that the average Net user spends more than 18 hours a week online. That includes browsing the Web (79%), banking (47%) and social networking and video sharing (46%). Another interesting tidbit: Almost everyone uses email -- even text-happy youngsters. Ninety-eight percent of Net users under 17 said they email, compared with 95% of those aged 18 to 24. The lowest level of email usage (94%) is among 45- to 54-year-olds.

--Whoo-hoo! It's National Doughnut Day! Since 1938, every first Friday in June is National Doughnut Day. The celebration of holey treats was the brainchild of the Salvation Army, which sought to honor the women who served doughnuts to soldiers during World War I. Both Dunkin Donuts and Krispy Kreme are offering freebies for the big occasion. DD will provide a free doughnut with the purchase of a beverage. KK says you don't have to buy anything for your free treat, but the giveaways are only happening at select stores. Enjoy.

-- David Lazarus

Photo: It's a big day for Homer. Credit: Reuters

 


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