Gasoline prices climb to record end-of-year highs ... again

The most expensive year ever for gasoline purchases in the U.S. is heading to a close, but not without one last snatch at motorists' wallets. Pain levels at the pump are rising again in California and across the rest of the nation, assuring that 2011 will mark the second year in a row that prices have posted record December highs.

The average price of a gallon of regular gasoline in California on Tuesday is $3.562, up 2.2 cents since last week, according to the AAA Fuel Gauge Report. That was enough to shatter the old record for Dec. 27 of $3.301, set last year. Previous to that, the worst that Californians had seen on this day was $3.266 a gallon in 2007.

Nationally, the numbers tell the same story. The U.S. average for a gallon of regular gasoline Tuesday is $3.231, up 1.8 cents since last week. That broke the old record set last year, which was an average of $3.042 a gallon. Before that, the highest U.S. average for this day was $2.981 in 2007.

But Americans aren't complaining as much as they did in 2008 when prices peaked at $4.588 a gallon in California and at $4.114 nationally, said Marie Montgomery, spokeswoman for the AAA of Southern California.

"Holiday travel is still pretty good," Montgomery said. "People still want to reconnect with family and distant friends, go home. That's a pretty resilient thing."

Montgomery added, however, that motorists said that they would only drive about 700 miles for the end of the year holidays or nearly 300 miles less than last year.

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Photo: Michael Reed fills his tank at a service station in Charlotte, N.C. Gasoline prices are at record late-December highs. Credit: Chuck Burton / Associated Press

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. 

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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

Barnes & Noble expands BN.com Marketplace

Barnes & Noble announced Thursday that it was expanding its BN.com Marketplace by adding more than 1 million new products across several product categories, including consumer electronics and home items.

The expansion will help the world's largest bookseller move beyond its focus on books and compete better with other online marketplaces such as Amazon.com and EBay.

New Marketplace categories are: home and gift; consumer electronics; arts and crafts; toys and games; and baby. 

John Foley, president of e-commerce for Barnes & Noble, called the expansion "an organic extension of our consumer value proposition" that would give customers a one-stop shopping destination.

"If shoppers are buying cookbooks from BN.com, it's natural to offer them cooking supplies at the same time," he said.

Shares of Barnes & Noble fell 11 cents, or 1%, to $10.72.

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Photo: A Barnes & Noble store at the Westside Pavilion in Los Angeles. Credit: Brian van der Brug / Los Angeles Times

Urban Outfitters drops 'Navajo' from online product names

Urban Outfitters Inc. has removed the word "Navajo" from its products online after an outcry from the Navajo Nation government, which accused the retailer of violating its trademark and using the word in poor taste.

The trendy retailer used the word in more than 20 product names online, including the $8 Navajo Hipster Panty and $18 Navajo Print Fabric Wrapped Flask, according to the Associated Press. The tribe holds at least 10 trademarks on the Navajo name, which covers clothing, household products and other items.

On Wednesday afternoon, Urban Outfitters' website showed that the clothing chain was instead using the less-controversial "printed" to describe the products.

The company's removal of the word from its products online was first reported by Indian Country Today, which said the Navajo Nation sent a cease-and-desist letter to Urban Outfitters this year.

A company spokeswoman did not respond to a request for comment.

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Photo: Urban Outfitters' Navajo Print Fabric Wrapped Flask is now the Printed Fabric Wrapped Flask. Credit: Urban Outfitters

Retail roundup: Target, Liz Claiborne and JCPenney, retail sales

-- Target is planning to hire more than 92,000 temporary workers this holiday season, and it's testing a new program that allows interested job applicants to text the retailer from their cellphones to get information about the positions. The move is intended to "make it easier and more convenient" for job seekers, Target spokesman Eddie Baeb said. 

Half a dozen Los Angeles-area Targets are participating in the text program, including stores in Compton, Corona and San Bernardino. 

-- J.C. Penney Co. said it had reached an agreement to acquire the Liz Claiborne family of brands as well as the U.S. and Puerto Rico rights for the fashion jewelry brand Monet for $267.5 million.

The department store chain has been the exclusive licensee for all Liz Claiborne and Claiborne-branded merchandise in the U.S. and Puerto Rico since August of last year. 

"The brands we are acquiring hold tremendous appeal for our customers, and the performance of the Liz Claiborne and Monet brands at J.C. Penney has consistently exceeded our high expectations," Chief Executive Myron E. Ullman III said in a statement. 

-- U.S. retail and food services sales rose 1.1% to $395.5 billion in September from August, the largest gain in seven months, the Department of Commerce said. Sales were up 7.9% when compared with September 2010. 

That's a bit of good news as the nation heads into the all-important holiday season; retail groups have been estimating that holiday sales will rise a modest 2% to 3% for the November-December period.

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Photo: A Target store in Culver City. Several Target stores will participate in a text program to hire temporary workers for the holidays. Credit: Lawrence K. Ho / Los Angeles Times

Mattel reports solid third-quarter earnings

Mattel Inc. reported a 6.2% rise in profit and a 9% increase in sales for the third quarter thanks to strong demand for Barbie, other doll lines and "Cars 2"-related toys.

For the three months ended Sept. 30, the nation's largest toymaker, based in El Segundo, reported profit of $300.8 million, or 86 cents a share, compared with $283.3 million, or 77 cents, in the year-earlier quarter.

"Not only have we continued to benefit from the strength of our core brands, but this year's big entertainment property, 'Cars 2,' is also fueling momentum," said Robert A. Eckert, Mattel's chief executive.

Heading into the holiday season, the most important time of the year for the toy industry, Eckert said the company was "keenly focused" on delivering growth in its core brands and entertainment properties, expanding its international footprint and building its newest franchise, the Monster High doll line.

Sales for the quarter were $2 billion, up 9% compared with $1.83 billion for the same quarter last year. Sales rose 6% in the U.S. and 13% in international markets, the company said.

Sales were up 17% for Barbie; 32% for Mattel's "other girls brands" such as Disney Princess and Monster High; and 14% for its entertainment business, which includes games, puzzles and "Cars 2" merchandise.

Mattel's Fisher-Price Brands unit had softer sales, rising 1% to $748.9 million.

Shares of Mattel were down less than 1% to $27.51 at 10:45 a.m. Pacific time.

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Photo: A Barbie ad in New York. Credit: Bloomberg

Gap to close 34% of namesake U.S. stores by end of 2013

Gap Inc. is closing stores and downsizing others in the U.S. as it focuses on international expansion, the San Francisco company said Thursday.

The long-struggling apparel giant plans to reduce the number of Gap brand stores in North America to 700 by the end of 2013, a 34% decrease in the number of those stores when compared to the end of 2007. It didn't specify which stores would close.

The company's Old Navy brand will have roughly the same number of stores in North America, but the locations will continue to downsize in terms of square footage. By the end of fiscal year 2013, Old Navy "expects to potentially remove" another 1 million square feet.

"In North America, sales are expected to grow modestly on its smaller, healthier specialty store fleet supplemented by sales growth in its online and outlet channels," the company said in a statement.

Gap Inc. has suffered from weak sales for years as shoppers have turned to trendier rivals to shop. Although it has had some success in turning things around -- namely a line of so-called premium denim that launched at Gap stores two years ago -- analysts say many of its fashions, such as women's tops, have underperformed.

Gap shares rose as high as $18.12 earlier but were off 8 cents to $17.77 shortly before 10 a.m. PDT. The stock is down 20% year to date, while the average retail stock in the Standard & Poor's 500 index is up 3.8%.

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Photo: A Gap store in San Francisco. Credit: Bloomberg

99 Cents Only Stores agrees to $1.6-billion buyout offer

99 Cents Only Stores Inc. has agreed to be taken private in a deal valued at about $1.6 billion, the City of Commerce deep-discount retailer said Tuesday, after months of talks with several groups interested in buying the company.

The chain said it had agreed to be acquired by Los Angeles private equity firm Ares Management and the Canada Pension Plan Investment Board for $22 a share in cash, a 7.4% premium to Monday's closing price of $20.49.

The price is also 32% higher than the stock's close on March 10, the day before it announced that it had received a $1.3-billion buyout proposal from Los Angeles investment firm Leonard Green & Partners and 99 Cents Only's founding family. The market viewed that $19.09-a-share bid as a lowball offer, and investors quickly pushed the stock above that level.

The company’s shares Tuesday morning were trading at $21.39, up 90 cents, or 4.4%, from Monday’s close.

99 Cents Only said the family of company founder David Gold had approved the Ares offer and would continue to hold a significant minority stake. Chief Executive Eric Schiffer, along with his brothers-in-law Jeff Gold, the company's president, and Howard Gold, executive vice president, would remain in their positions and serve as directors. David Gold would serve as chairman emeritus.

The deal also has been approved by the company's board and by a special committee set up to review all buyout proposals. If approved by shareholders, the transaction is expected to close in the first quarter of 2012.

The agreement "delivers significant value to our shareholders," Schiffer said in a company statement.

Retail roundup: JCPenney, retail association for students, trends

-- It may become harder to control those impulse purchases at JCPenney. The department store chain is rolling out special grab-and-go areas in their stores called "Wrapt," which will be dedicated to holiday gifts, according to the Associated Press. The items range from $3 chocolate candy to $40 mini speakers that can plug into iPads or iPods. A JCPenney executive said the company wanted to give time-strapped customers easier access to quick, impulsive gifts. The in-store shops roll out at 1,100 stores Oct. 24.

-- The National Retail Federation is launching a student association aimed at giving college students the chance to learn about the industry and network with retail professionals. The association will enable retailers to post internships, mentor students and collaborate with top colleges and universities on research projects. Fifteen colleges -- including the Fashion Institute of Design & Merchandising in L.A., the University of Arizona and the University of Wisconsin at Madison -- have signed on to participate. 

"Retail executives realize that in order to be competitive we need the brightest young talent, and we're making a conscious effort to entice the very best students," said Kip Tindell, chairman of the National Retail Federation Foundation and chief executive of the Container Store. The association will "offer students opportunities and face time with executives and recruiters that have been impossible until now."

-- Market research firm NPD Group surveyed adults for three weeks in September and asked them: "What would the kids you know say is the hottest new things these days? It might be a celebrity, movie TV show, toy, game, hobby, sport, website, brand or retail store." In the No. 1 spot? Justin Bieber. He was followed by the Cars franchise and the Xbox 360. 

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Photo: A JCPenney store in New York. Credit: Associated Press

99 Cents Only shares jump after report of new takeover bid

99 Cents Only Stores Inc. has received a takeover offer from a private equity firm that tops an earlier bid from Leonard Green & Partners, according to a news report.

The New York Post said Thursday that Ares Capital Corp. made an offer for the City of Commerce-based deep-discount chain in the range of $22 a share, or about $1.55 billion. The paper cited two sources "close to the situation."

99 Cents Only shares rose 8.4% to $20.05 on the news.

In March, 99 Cents Only said it had received a $1.3-billion buyout proposal from its founding family and Leonard Green, a Los Angeles investment firm, to take the retailer private. Investors viewed that bid as too low and quickly pushed the stock price above the $19.09 a share offered by the Schiffer/Gold family and Leonard Green.

On Thursday, Eric Schiffer, chief executive of 99 Cents Only, declined to talk about the report or any possible bids. "We don't comment," he said. "As far as I know, other people shouldn't be commenting to anybody."

A spokesman for Ares also declined to comment.

The New York Post said private equity firm Apollo Global Management had also been vying for 99 Cents Only but dropped out several weeks ago "after struggling to line up debt financing at what it considered to be acceptable terms."

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Photo: A 99 Cents Only store in Los Angeles. Credit: Irfan Khan / Los Angeles Times

American Apparel reports improved third-quarter results

Sales are slowly rebounding at Los Angeles clothing maker American Apparel.

For the three months ended Sept. 30, the company reported that third-quarter sales rose 5% to $141 million compared with the same quarter a year ago. At stores open at least a year -- an important measure of a retailer's health because it excludes store openings and closings -- sales were up 3%.

"Comparable-store sales were positive in both our store and online channels and we saw a return to solid sales growth in our wholesale channel," Chief Executive Dov Charney said in a statement. "As we enter what is historically our strongest quarter of the year, we are optimistic that if current sales trends continue, we will continue to see substantial improvement in our overall financial performance."

American Apparel did not release its profit or other financial results. At 8:15 a.m. Pacific time Thursday, American Apparel's stock was unchanged at 75 cents.

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Photo: American Apparel CEO Dov Charney. Credit: Bloomberg