Saudi website editor could face death for apostasy-rights group






RIYADH (Reuters) – The editor of a Saudi Arabian website could be sentenced to death after a judge cited him for apostasy and moved his case to a higher court, the monitoring group Human Rights Watch said on Saturday.


Raif Badawi, who started the Free Saudi Liberals website to discuss the role of religion in Saudi Arabia, was arrested in June, Human Rights Watch said.






Badawi had initially been charged with the less serious offence of insulting Islam through electronic channels, but at a December 17 hearing a judge referred him to a more senior court and recommended he be tried for apostasy, the monitoring group said.


Apostasy, the act of changing religious affiliation, carries an automatic death sentence in Saudi Arabia, along with crimes including blasphemy.


Badawi’s website included articles that were critical of senior religious figures, the monitoring group said.


A spokesman for Saudi Arabia’s Justice Ministry was not available to comment.


The world’s top oil exporter follows the strict Wahhabi school of Islam and applies Islamic law, or sharia.


Judges base their decisions on their own interpretation of religious law rather than on a written legal code or on precedent.


King Abdullah, Saudi Arabia’s ruler, has pushed for reforms to the legal system, including improved training for judges and the introduction of precedent to standardize verdicts and make courts more transparent.


However, Saudi lawyers say that conservatives in the Justice Ministry and the judiciary have resisted implementing many of the changes that he announced in 2007. (Reporting By Angus McDowall; Editing by Kevin Liffey)


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Bethenny Frankel and husband of 2 years separating






LOS ANGELES (AP) — Bethenny Frankel and husband Jason Hoppy are separating.


The 42-year-old TV personality, chef, author and entrepreneur told The Associated Press Sunday that the split brings her “great sadness.”






“This was an extremely difficult decision that as a woman and a mother, I have to accept as the best choice for our family,” Frankel said. “We have love and respect for one another and will continue to amicably co-parent our daughter who is and will always remain our first priority. This is an immensely painful and heartbreaking time for us.”


Frankel and Hoppy were married in 2010 and have a daughter, Bryn, who was born that same year. The couple’s courtship and marriage were documented in two reality series, “Bethenny Getting Married?” and “Bethenny Ever After…” Frankel gained fame as a star of “The Real Housewives of New York City.” Since her stint on the Bravo show, she has written four books, released a fitness video and founded her Skinnygirl line of cocktails, shapewear and nutritional supplements.


She launched a talk show, “Bethenny,” over the summer that is set to air nationally on Fox stations in 2013.


___


AP Entertainment Writer Sandy Cohen is on Twitter: www.twitter.com/APSandy .


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Few tests done at toxic sites after superstorm






OLD BRIDGE, N.J. (AP) — For more than a month, the U.S. Environmental Protection Agency has said that the recent superstorm didn’t cause significant problems at any of the 247 Superfund toxic waste sites it’s monitoring in New York and New Jersey.


But in many cases, no actual tests of soil or water are being conducted, just visual inspections.






The EPA conducted a handful of tests right after the storm, but couldn’t provide details or locations of any recent testing when asked last week. New Jersey officials point out that federally designated Superfund sites are EPA’s responsibility.


The 1980 Superfund law gave EPA the power to order cleanups of abandoned, spilled and illegally dumped hazardous wastes that threaten human health or the environment. The sites can involve long-term or short-term cleanups.


Jeff Tittel, executive director of the Sierra Club in New Jersey, says officials haven’t done enough to ensure there is no contamination from Superfund sites. He’s worried toxins could leach into groundwater and the ocean.


“It’s really serious and I think the EPA and the state of New Jersey have not done due diligence to make sure these sites have not created problems,” Tittel said.


The EPA said last month that none of the Superfund sites it monitors in New York or New Jersey sustained significant damage, but that it has done follow-up sampling at the Gowanus Canal site in Brooklyn, the Newtown Creek site on the border of Queens and Brooklyn, and the Raritan Bay Slag site, all of which flooded during the storm.


But last week, EPA spokeswoman Stacy Kika didn’t respond to questions about whether any soil or water tests have been done at the other 243 Superfund sites. The agency hasn’t said exactly how many of the sites flooded.


“Currently, we do not believe that any sites were impacted in ways that would pose a threat to nearby communities,” EPA said in a statement.


Politicians have been asking similar questions, too. On Nov. 29, U.S. Sen. Frank Lautenberg, D-N.J., wrote to the EPA to ask for “an additional assessment” of Sandy’s impact on Superfund sites in the state.


Elevated levels of lead, antimony, arsenic and copper have been found at the Raritan Bay Slag site, a Superfund site since 2009. Blast furnaces dumped lead at the site in the late 1960s and early 1970s, and lead slag was also used there to construct a seawall and jetty.


The EPA found lead levels as high as 142,000 parts per million were found at Raritan Bay in 2007. Natural soil levels for lead range from 50 to 400 parts per million.


The EPA took four samples from the site after Superstorm Sandy: two from a fenced-off beach area and two from a nearby public playground. One of the beach samples tested above the recreational limit for lead. In early November, the EPA said it was taking additional samples “to get a more detailed picture of how the material might have shifted” and will “take appropriate steps to prevent public exposure” at the site, according to a bulletin posted on its website. But six weeks later, the agency couldn’t provide more details of what has been found.


The Newtown Creek site, with pesticides, metals, PCBs and volatile organic compounds, and the Gowanus Canal site, heavily contaminated with PCBs, heavy metals, volatile organics and coal tar wastes, were added to the Superfund list in 2010.


Some say the lead at the Raritan Bay site can disperse easily.


Gabriel Fillippeli, director of the Center for Urban Health at Indiana University-Purdue University Indianapolis, said lead tends to stay in the soil once it is deposited but can be moved around by stormwaters or winds. Arsenic, which has been found in the surface water at the site, can leach into the water table, Fillippeli said.


“My concern is twofold. One is, a storm like that surely moved some of that material physically to other places, I would think,” Fillippeli said. “If they don’t cap that or seal it or clean it up, arsenic will continue to make its way slowly into groundwater and lead will be distributed around the neighborhood.”


The lack of testing has left some residents with lingering worries.


The Raritan Bay Slag site sits on the beach overlooking a placid harbor with a view of Staten Island. On a recent foggy morning, workers were hauling out debris, and some nearby residents wondered whether the superstorm increased or spread the amount of pollution at the site.


“I think it brought a lot of crud in from what’s out there,” said Elise Pelletier, whose small bungalow sits on a hill overlooking the Raritan Bay Slag site. “You don’t know what came in from the water.” Her street did not flood because it is up high, but she worries about a park below where people go fishing and walk their dogs. She would like to see more testing done.


Thomas Burke, an associate dean at the Johns Hopkins School of Public Health, says both federal and state officials generally have a good handle on the major Superfund sites, which often use caps and walls to contain pollution.


“They are designed to hold up,” Burke said of such structures, but added that “you always have to be concerned that an unusual event can spread things around in the environment.” Burke noted that the storm brought in a “tremendous amount” of water, raising the possibility that groundwater plumes could have changed.


“There really have to be evaluations” of communities near the Superfund sites, he said. “It’s important to take a look.”


Officials in both New York and New Jersey note they’ve also been monitoring less toxic sites known as brownfields and haven’t found major problems. The New York DEC said in a statement that brownfields in that state “were not significantly impacted” and that they don’t plan further tests for storm impacts.


Larry Ragonese, a spokesman for the New Jersey Department of Environmental Protection, said the agency has done visual inspections of major brownfield sites and also alerted towns and cities to be on the lookout for problems. Ragonese said they just aren’t getting calls voicing such concerns.


Back at the Raritan Bay slag site, some residents want more information. And they want the toxic soil, which has sat here for years, out.


Pat Churchill, who was walking her dog in the park along the water, said she’s still worried.


“There are unanswered questions. You can’t tell me this is all contained. It has to move around,” Churchill said.


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How Not to Stash $7 Million in Gold






Walter Samaszko Jr. was not a guy who wanted company. He covered the windows of his house in Carson City, Nev., with cardboard so the neighbors couldn’t see inside. He made the postman stick the mail through the slot in his garage rather than coming to the front door. He was so good at keeping people away that when he died of heart failure at age 69 in June, nobody noticed until his house began to smell. Someone called the sheriff’s department. A hazmat team removed Samaszko along with part of the floor he was stuck to.


That’s when everybody found out why he hadn’t been more sociable: The dour, white-haired recluse had been hoarding $ 7 million worth of gold coins, most of them hidden in the crawl space beneath the house. Some were in an old washing machine. There were British sovereigns dating back to the 1840s, Austrian ducats, and South African Kruggerands. But mostly Samaszko had collected rolls and rolls of $ 20 American gold pieces, the kind with double eagles on them. He also had $ 12,000 in cash, a stock account worth $ 165,000—and $ 200 in the bank.






The person who discovered Samaszko’s secret was Jeri Vine, a local real estate broker hired to clean up his house. She spent five days combing through his possessions. Samaszko had been prepared for the worst. He owned several guns, gas masks, and survivalist manuals. His cupboards were filled with canned tuna fish. He had a lot of Johnny Mathis tapes. Vine threw most of it out. “We had like a 33-yard dumpster on the driveway,” she says. “I filled that thing.”


On the fourth day, Vine opened a metal ammunition box in the garage. It was full of gold coins in plastic cases. She called Alan Glover, the public administrator of Carson City. “Alan, get over here immediately!” she told him. “There’s so much money it’s unbelievable.” The sheriff’s department returned to the house, this time with metal detectors. It took Glover and three attorneys two days to count all the coins. With the help of a numismatic expert, they determined that Samaszko’s clutch was worth $ 7 million. The gold is being stored in a vault in Reno until a local probate court judge decides its fate.


Samaszko may have been prepared for a societal collapse, but not for his own end. He had no will. Nor did he have any children. Glover was able to locate a first cousin, Arlene Magdanz, a part-time teacher in San Rafael, Calif., who hadn’t seen him in years. Glover expects the probate court to release the fortune to Magdanz after the IRS extracts its cut. (He estimates the federal government’s take will be about $ 800,000.)


The tale of the elderly recluse who turned out to be a millionaire became a brief sensation, with Vine and Glover appearing on the Today show.


Vine eventually sold Samaszko’s house for an undisclosed price. Some prospective buyers just wanted to see if there was any more gold hidden there. “One guy had his contractor friend go underneath the house,” Vine says. “I told him we went through that place with a fine-toothed comb. Never heard from him again.”


It’s easy to see why Samaszko’s death and the revelations that followed fascinate people. How many of us would have kept $ 7 million in a crawl space and not touched it? It makes you wonder what other secrets died with him.


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3-day trip becomes 3-week ordeal for 2 Jamaicans






SAN JUAN, Puerto Rico (AP) — It was supposed to be a three-day fishing trip at most. It turned into a three-week ordeal, drifting under an intense sun for hundreds of miles in the Caribbean in a small boat with a broken motor.


The two Jamaican fishermen survived by eating raw fish they caught and drinking water from melted ice they had brought to preserve their catch. The Colombian navy finally plucked them from the sea a week ago and delivered them home Saturday after treating them for severe dehydration, malnutrition and hypothermia.






Everton Gregory, 54, and John Sobah, 58, recounted their story in a telephone interview from Jamaica, while the boat owner and the men’s employer also provided details.


The men set off from Jamaica’s southeastern coast on Nov. 20. The water was glassy, the wind was calm and their boat was laden with 14 buckets of ice, 16 gallons of water and several bags of cereal, bread and fruit.


They headed to Finger Bank, a nearby sand spit 8-miles-long (13-kilometers) that is known for its abundance of fish like wahoo, tuna and mahi mahi. The owner of the 28-foot (8-meter) boat said she usually joins them on fishing trips, but she couldn’t go that afternoon.


After spending a couple of days around Finger Bank, the two men set off for home with their catch. But the boat’s engine soon died. The water was too deep to use the anchor and the current too strong to use the oars, so the boat slowly drifted away from Jamaica.


At first, the men got by on sipping the water and eating the food they brought with them. But days turned into weeks, and they began to eat the fish they had caught and drink the melted ice that had kept it fresh.


Gregory and Sobah kept eating raw fish and used a tarp to try to collect water, but the rain clouds remained at a distance.


Back home, friends and family called police and used their own boats to search the area where the men were last seen. The two fishermen work for the Florida-based nonprofit group Food for the Poor, which chartered a plane to search along Jamaica’s coast.


Marva Espuet, the owner of the boat, said she knew she had packed it with more food and water than needed for a three-day trip, but the thought provided little relief.


“If I had gone, there would have been two boats going,” said the 52-year-old woman, a longtime friend of both fishermen.


With searches proving fruitless, Sobah’s niece grew frantic, recalled Nakhle Hado, a fishing manager for Food for the Poor who helped lead the search. She “begged me that she wanted John back for Christmas,” Hado said.


Hado said some people believed the two men would never be found, but he and others didn’t give up. “My gut was telling me that they were still alive,” he said.


Hado said he had trained Gregory and Sobah on how to survive at sea.


“In case something happens, they don’t have to think twice. They know how to react,” he said. “It’s very important, their mental state.”


Gregory and Sobah finally ran out of fresh water and went several days without drink. A healthy human being can die from dehydration anywhere from three to five days without water.


Then on Dec. 12, a Colombian navy helicopter patrolling off the coast of that South American country spotted the men near Lack of Sleep cay, more than 500 miles (800 kilometers) from where they started. It took two days for a navy vessel to reach them because of bad weather. The men were hospitalized for several days at the Colombian island of San Andres before boarding a plane back home to Jamaica.


“It feels good,” Sobah told the AP in a brief phone interview after arriving.


Gregory said he had lost hope, but Sobah tried to keep him positive that they would be rescued. “I just had that belief,” Sobah said. “I believe in the Creator.”


Yet it is Gregory who plans to keep fishing despite the ordeal because he needs the job.


Sobah said he’s done. “I’m not going to go fishing again. No way.”


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The ‘Teen Mom’ Twitter Proposal






Hmm. Teen mom from Teen Mom Maci Bookout was on Twitter the other day when she received a tweet from the father of her child asking her to marry him. No lie! Ryan Edwards from Teen Dad — Huh? What’s that? There’s no such show? He’s just on Teen Mom? Oh, OK — was all “Maci Bookout marry me!” And Maci was all “Ur s–t got hacked BRO! Outta ur mind haha.” And then Ryan was all “would never let that happen.” Maci asked what he was playing at and then Ryan said, omg, “It means that I want to get on one knee and tell you how much I love you.” Whoaaaa! That’s huge! Maci, marry that boy! He just proposed to you sort of maybe on Twitter! How romantic! Also you have a four-year-old child together so maybe it would be easier to be married, I dunno, for like legal reasons or something? But no. Alas. Maci responded to that saying “Twitter is not the place. Ima kill u.” So wait. If we’re going to take Ryan’s sweet Twitter proposal seriously, which we’re going to, I guess that means we have to take Maci‘s Twitter death threat seriously, too? Police, go arrest Maci. As much as it pains us to say it. Fair’s fair. Ryan, you can marry Maci while she’s in jail. Bentley, which is the name of the child that made all of this, literally all of this, possible, can come live with Ryan while Maci serves her sentence. Sad that such a sweet moment had to end so tragically. But that’s Twitter for you. [Us Weekly]


RELATED: James Franco Has a New Girl






Haha/Ew: Lindsay Lohan said she would not kiss Charlie Sheen when they were filming their scene for Scary Movie 5 because “his mouth grossed her out.” Yes. That’s actually the headline of the TMZ post: “Lindsay REFUSED to Kiss Charlie … Because His Mouth Grossed Her Out.” Man. In a thousand years, when the aliens are sifting through our bones and ashes to learn about the civilization they just annihilated, they’re going to somehow find a list of TMZ headlines and will shake their big gelatinous heads and figure they were right to wipe us out. TMZ headlines. Wooftie. But back to Lindsay, I don’t blame her. You couldn’t pay me a trillion dollars to kiss Charlie Sheen. Why not just pay me ten bucks to lick a wall at the Port Authority? Honestly. Here’s a good line from the story: “we’re told BOTH parties had to sign releases that they didn’t have cold sores.” Which, holy hell, guys. If you have to do that to film a stupid movie, maybe it’s time to pack a suitcase and more to Uruguay. Like, chuck this rotten life aside and say see you soon, Montevideo. You’d be so much happier. It’s supposed to be great down there. It’s time for a change, you guys. Don’t be another TMZ headline. [TMZ]


RELATED: Charlie Sheen and Lindsay Lohan Made Out


Naomi Campbell ate at the new Beatrice Inn on Wednesday night, hobbling in on crutches and in a leg brace after she tore a ligament or something. She ate with Vogue editor Carlyne Cerf de Dudzeele and a photographer named Steven Meisel. At a table nearby, Vera Wang, Calvin Klein, and Donna Karan were all having dinner. Excuse me?? What happened next? Did they all go to a screening of Unzipped and then to the after party, where the Spin Doctors were playing? Was everyone talking about the last MTV Top 20 and if Idalis is better than Daisy Fuentes? I mean, what? Naomi Campbell walks into a restaurant and Calvin Klein, Donna Karan, and Vera freaking Wang are eating nearby? Was Betsey Johnson the busboy? Was Cindy Crawford sweating on the line as a cook? Honestly. I didn’t realize they were still filming Prêt-à-Porter. Good grief. [Page Six]


RELATED: The 2012 Gossip Stories We Loved


Did you know that Kelly Clarkson is engaged to Reba McEntire‘s stepson? Because she is. Kelly Clarkson is engaged to Reba McEntire‘s stepson. So engaged, in fact, that Reba thinks the two might elope. Or at least she “wouldn’t be surprised” if they did. Because some big wedding wouldn’t really be Kelly’s style, apparently. Reba said as much: “That was never my deal and I don’t know that that’s Kelly’s either.” Oh, man. I wish Reba would say “that was never my deal” in a sentence about me. What a nice life Kelly Clarkson has had. Famous from a TV show and then actually famous, respectably famous. And now she gets to marry into Reba McEntire‘s family. It’s all coming together for Kelly Clarkson, guys. Just in time for the end of the world. [Us Weekly]


RELATED: In Which Taylor Swift and One Direction’s Harry Styles Get Serious


Jessica Biel has been doing a tour of Broadway recently. First she went to see Book of Mormon and afterward tweeted thusly: “Book of Mormon was too good for words . . . Except for words like amazing and best musical I’ve seen in forever and incredible!” Which is a totally boring thing to say about Book of Mormon. Here’s the skinny on that show: It’s not that good. Actually, forget the italics. It’s just not that good. Just because a Broadway musical swears and says “scrotum” a lot, does not mean it is being daring or irreverent. It’s a wan show that actually totally gives Mormonism a pass and instead averts your gaze to freaking Africa, which it just makes fun of for two hours because who’s gonna fight back on that one? Toothless and dim, that show. Entertaining, but toothless and dim. Whatever. Jessica Biel then went to go see ScarJo in Cat on a Hot Tin Roof, which good heavens I didn’t know that was in previews already. That is a nightmare. She’s playing Maggie the Cat, ScarJo is. Can you believe that? Well, believe it or not, she is. And Jessica Biel went to go see it. Tellingly, no tweets about that. Ha, not a single damn tweet about that heap. Anyway, all this playgoing has Page Six wondering if J.Biel might be hungry for a Broadway show of her own. Which would be a fine mess, wouldn’t it? Unless they do a Seventh Heaven stage play, something really serious and earnest, in which case I would walk Ms. Biel to the theater myself. But otherwise? Nope. Get thee back to the Stealth 2 set, Biel. Return to where you belong. [Page Six]


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“Twilight Zone” reboot in the works from Bryan Singer, CBS Television Studios






LOS ANGELES (TheWrap.com) – Bryan Singer is about to enter “The Twilight Zone.”


The “X-Men” director is working on a reboot of Rod Serling‘s television series with CBS Television Studios, a spokeswoman for CBS Television Studios told TheWrap. Singer will develop and executive-produce the project, and could direct.






The project is currently in the very early stages.


The original “Twilight Zone” ran on CBS from 1959 to 1964, and the network revived the series in the 1980s. Most recently, the UPN ran a revival of the series, with Forest Whitaker hosting. That version, which launched in 2002, lasted one season.


Singer was also involved in the revival of another classic television series earlier this year, with NBC’s “The Munsters” revamp, dubbed “Mockingbird Lane.” Initially conceived as a series, “Mockingbird Lane” aired as a Halloween special for the network.


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UK prosecutors consider charges over royal hoax call






LONDON (Reuters) – British detectives investigating the death of a nurse found hanged after she took a prank phone call at a hospital treating Prince William‘s pregnant wife Kate have passed an evidence file to prosecutors, police said on Saturday.


Public prosecutors must decide whether the case is strong enough to bring charges over a stunt that was condemned around the world and fuelled concerns about media ethics.






Indian-born Jacintha Saldanha, 46, was found hanging in her hospital lodgings in London, days after she answered the hoax call from an Australian radio station, an inquest heard.


She put the call through to a colleague who disclosed details of the Duchess of Cambridge‘s condition during treatment for an extreme form of morning sickness in the early stages of pregnancy.


“Officers submitted a file to the Crown Prosecution Service (CPS) for them to consider whether any potential offences may have been committed by making the hoax call,” London’s Metropolitan Police said in a statement.


A CPS spokesman confirmed it had received the file, but declined to comment on the timing or nature of possible charges.


“That is what we will be considering,” he said.


Prime Minister David Cameron has described the case as a “complete tragedy” and has said many lessons will have to be learned from the nurse’s death.


Australia’s media regulator has launched an investigation into the phone call. Southern Cross Austereo, parent company of radio station 2Day FM, has apologised for the stunt.


Britain’s own media is already under pressure to agree a new system of self-regulation and avoid state intervention following a damning inquiry into reporting practices.


The presenters who made the call, Mel Greig and Michael Christian, have apologised for their actions.


(Reporting by Peter Griffiths; Editing by Stephen Powell)


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Signs suggest better economy if ‘cliff’ is averted






WASHINGTON (AP) — Fresh signs of a strengthening U.S. economy on Friday suggested that if Congress and the White House can avert the “fiscal cliff,” the economic recovery might finally accelerate in 2013.


Consumers spent and earned more in November. And for a second straight month, U.S. companies increased their orders for a category of manufactured goods that reflects investment plans.






In light of the latest figures, some analysts said the economy could end up growing faster in the current October-December quarter — and next year — than they previously thought.


“I see momentum building,” said Joel Naroff, chief economist at Naroff Economic Advisors. “If Washington makes the moves it needs to make, then the economy should pick up speed next year.”


That’s a big “if.” House Republicans called off a vote on tax rates and left budget talks in disarray 10 days before the package of tax increases and spending cuts known as the fiscal cliff would take effect.


Still, helping lift the optimism of some analysts was a government report that consumer spending, which fuels about 70 percent of the economy, rose 0.4 percent in November compared with October. Spending had dipped 0.1 percent in October. But that decline was linked in part to disruptions from Superstorm Sandy.


Incomes rose 0.6 percent in November, the biggest gain in 11 months. It reflected a rebound in wages and salaries, which had been depressed in October. Damage from Sandy in the Northeast prevented some people from working at the end of October and reduced wages at an annual rate of $ 18 billion.


A separate report Friday showed that a category of durable-goods orders that tracks business investment surged 2.7 percent. That gain followed an upwardly revised 3.2 percent jump in October, the biggest in 10 months.


The back-to-back increases followed a period of weakness in so-called core capital goods that had raised concerns about business investment, a driving force in the economy.


The economy grew in the July-September quarter at a solid 3.1 percent annual rate. But some analysts said they thought growth would slow significantly in the October-December period. They predicted that consumers and businesses would cut back on spending because of worries about the fiscal cliff.


But after Friday’s reports, Peter Newland, an economist at Barclays Capital, said Barclays is raising its estimate of growth in the current quarter to a 2.4 percent annual rate, from a previous estimate of 2.2 percent.


Naroff said he thinks growth in the fourth quarter can reach a 2.6 percent annual rate. He said he expects growth to hit a rate of around 3.2 percent in the January-March quarter and 3.6 percent in the April-June quarter.


He said those estimates are based on his confidence that Washington policymakers will avert the sharp tax increases and spending cuts, which could trigger a recession if they remain in place for much of 2013.


Naroff said U.S. economic growth would benefit next year from a rebounding housing market, gradual hiring gains that will boost incomes and the likelihood that Europe’s financial crisis will ease and dampen U.S. exports less than in 2012.


But he said his optimistic forecasts would be derailed if the economy goes off the fiscal cliff in January, which could send shockwaves through financial markets.


“If the fiscal cliff is breached, the biggest concern is confidence,” Naroff said. “I remain hopeful that saner heads will prevail in Washington.”


Economists said the budget impasse and the uncertainty it’s created about tax rates are reducing consumer confidence. The University of Michigan said Friday that its index of consumer sentiment for December fell to 72.9, its lowest point since July. It was a sharp drop from the November reading of 82.7, a five-year high.


Chris G. Christopher Jr., senior economist at IHS Global Insight, said he still expected holiday retail sales to increase a respectable 3.9 percent this year over last year despite slumping consumer confidence. And he said spending momentum should continue into 2013 — as long as the fiscal cliff is resolved in a way that avoids damaging the economy.


“We are assuming that the fiscal cliff does get resolved, and if it does, we should see strong consumer spending and momentum for the economy in 2013,” Christopher said. “But if we go down the fiscal cliff, then the first quarter will not be pretty.”


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Showrooming little threat to clothiers in ho-hum holidays






Chicago (Reuters) – In retail, showrooming has not hit shirts yet.


Showrooming, the retail term for shoppers who try a product, then buy it cheaper on Amazon.com or other websites, has driven retailers to the point of hiding barcodes, improving their own websites and coming up with methods to get people to complete their purchase in the store.






But brand-name clothing retailers have an advantage over companies that sell items you can buy anywhere, like televisions and home goods.


Specialty apparel retailers are some of the least affected by showrooming since the more exclusive the product is, the harder it is to showroom,” said Joel Bines, managing director of the retail practice at advisory firm AlixPartners.


That, in turn, has helped retailers like Gap Inc and Lululemon Athletica Inc find favor with investors.


A survey of 2,010 adults conducted by AlixPartners showed consumers who shop for apparel were among the least likely (35 percent) to go to other websites after they liked an item at a store, compared with 42 percent of electronics shoppers and 41 percent of those looking for accessories like watches and jewelry.


“If you look at some of the most successful (clothes) companies in the past few years, they are those that have that moat around them,” said hedge fund manager Shawn Kravetz, who runs Esplanade Capital in Boston.


He cites yogawear maker Lululemon and Gap as good examples of how it can help to have clothes that are not sold elsewhere.


If a shopper wants to buy a Banana Republic or Nordstrom shirt from the latest season, they have to buy it either from their stores or online shop.


Discount retailers like Zappos, Amazon and others stock brand-name products, but the merchandise is often not from the current season or limited in colors and sizes.


“I don’t need to see if a television fits my body shape when I buy a TV,” said Joe Megibow, senior vice president of omni-channel e-commerce at American Eagle Outfitters. The teen clothes retailer has seen better sales than its peers over the past year.


“I can get a sense of the TV and I’m good. Clothing is different. Does it fit me, is it my style, do I like the quality of the material and how it is put together. There’s so much more with apparel that matters,” he said.


That is the part of the reason, analysts say, why online-only clothing companies like Bonobos and Gap’s Piperlime have started opening brick-and-mortar stores or tied up with retailers to sell their products in physical locations.


Choice and easy availability are the two most important aspects of shopping, especially during a holiday season that has lost steam after what looked like strong Thanksgiving sales.


Estelle Tran, an “impulsive” shopper in her twenties, agreed.


“If I want to buy books, tech items, DVDs, I would definitely buy online. For clothes, I would rather (visit stores) as it is also a fun experience to try on clothes,” said the Chicago-based finance auditor.


Tran said she would definitely check prices online if she was spending more than $ 100.


Luxury and high-priced items can be more susceptible to showrooming, because pricing is what drives the behavior, said Marshal Cohen, chief economist at the consultancy NPD Group.


“With electronics and certain consumer goods it is very easy to compare specific brands across multiple websites. But (showrooming is) happening and it will be growing. If a (clothes) retailer isn’t taking it seriously, they are going to fall behind,” said Bolette Andersen, principal in KPMG’s retail industry practice.


ROOM TO GROW


Some investors are betting on apparel stocks because of their relative insulation from the threat of showrooming.


While the S&P Apparel Index has returned a sizzling 27.71 percent year to date, according to Reuters data, far outperforming the S&P 500, which is up 14.80 percent, more gains may be coming.


“We still think there’s plenty of room to grow,” said Brian Peery, co-portfolio manager at Hennessy Funds. Its growth fund, heavily weighted in apparel and consumer discretionary goods shares, is up 30 percent over the year.


“As we look into the sector 12-18 months, we continue to buy the discretionary area. Two of our heaviest investments would be Foot Locker Inc and TJX Companies Inc,” he said.


Discount chains like TJX and Ross Stores, which sell branded clothes at low prices, have benefited from the surge in bargain-seeking shoppers.


Even the stocks of retailers like Gap and American Eagle that have staged or are staging turnarounds have gotten a good boost over the year. Gap has soared 69 percent and American Eagle is up 31 percent.


R. Shawn Neville, president of Avery Dennison retail branding and information solutions, said another reason that apparel and to a broader extent other consumer discretionary stocks do well is because of their sustainability.


“In uncertain times, investors look towards market segments that have strong underlying demand which are more stable, like the apparel industry,” Neville said.


Moreover, in times of economic uncertainty, shoppers can still afford clothes and shoes, as opposed to a new car, home, or expensive vacations, helping apparel stocks do well, he said.


“Though Amazon is clearly stealing some share in various categories, clothes retailers, say Abercrombie & Fitch isn’t going anywhere. They’re not being run out of the shopping mall,” said Esplanade’s Kravetz.


(Editing by Jeffrey Benkoe)


Canada News Headlines – Yahoo! News





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