NEW YORK—Online shoppers Д wooed by new sites like Gap Inc.’s () shoe site piperlime.com, enhanced merchandise images and such come-ons as free shipping Д spent more on clothing and accessories than on computers for the first time ever, according to an annual industry study released Monday.

Online sales of apparel, accessories and footwear reached $18.3 billion last year and should hit $22.1 billion this year, according to the survey conducted by Internet research firm Forrester Research.

Shop.org is the online arm of , the retail industry trade group.

Meanwhile, computer hardware and software, long the leader for nontravel online sales, moved into second place last year, at $17.2 billion.

That was followed by sales of autos and auto parts, whose sales reached $16.7 billion, and home furnishings, which posted sales of $10 billion.

Computer peripherals, which reached $1.5 billion in sales last year, were not included in the hardware and software category.

The figures were based on responses from 170 online retailers as well as an analysis of industry data.

“This is a real milestone in the industry,” said Scott Silverman, executive director of Shop.org, noting that the popularity of apparel online is now in line with what’s happening on land. “We have really gone mainstream.”

Silverman and Sucharita Mulpuru, senior analyst and lead author of the report, noted that new technology that mimics shopping at physical stores such as the ability to mix and match clothing and zoom in on a pattern has faciliated online shopping.

Furthermore, a growing number of apparel sites are now adding customer reviews, which help shoppers in their decision making.

A bevy of new shoe sites like , which offers free shipping on returns, is also providing a boost to the online footwear business.

Overall, online sales including travel rose 25 percent to $219.9 billion last year. Excluding travel, e-commerce rose 29 percent to $146.5 billion. For the current year, online sales including travel are projected to rise 18 percent to $259.1 billion. Sales excluding travel should reach $174.5 billion in 2007, or a 19 percent gain.

The study reported that 10 percent of all clothing, accessories and footwear sales are expected to occur online this year, up from 8 percent last year. And overall online retail sales excluding travel should account for 7 percent of the total retail market in 2007, up from 6 percent.

Still, the study noted that the top challenges to even greater growth include the delay between ordering and receiving most products and the fact that consumers often need to physically see an item before buying.

While several merchants have rolled out the ability to buy online and pick up the merchandise at a store, few have succeeded in making this a seamless process.

In many cases, stores will call back with availability more than 24 hours after the order was placed, negating the program’s goal of giving shoppers immediate access to the merchandise, according to the report.

The report also noted that profitability throughout the sector stabilized. Eighty-three percent of respondents to the survey reported profitability and 78 percent said they were more profitable than in 2005.

Profit as a percentage of revenue did not change because revenue and expenses rose as well, according to the report.

A TROUBLED arts centre in one of Edinburgh’s most deprived areas has been given an 11th-hour reprieve from closure.

The city council performed a last-minute U-turn over the fate of North Edinburgh Arts Centre, which will save it from being wound up in the next few days.

Management at the Muirhouse complex, which ran up almost 300,000 worth of debts, persuaded councillors to stump up 25,000 to help them mount a rescue bid.

The council has agreed to give the centre half of the remaining 50,000 it has yet to receive from its annual 170,000 grant.

The remainder is expected to follow in November on condition the centre produces a robust business plan.

Council officials had earlier ruled out providing the centre with emergency funding of 150,000 plus the remainder of its annual grant as unrealistic.

Last week, the Evening News revealed that the centre was due to go out of business by the end of the month unless some financial support from the council could be secured.

However, last-ditch talks between new centre director Claire Hicks, her board members, senior council officials and councillors led to the change of heart.

A delegation of centre users and supporters also issued a plea to councillors on the new culture and leisure committee to throw the complex a lifeline. Although the centre is to stop programming live music, drama and dance events for the forseeable future, it will continue to run the acclaimed “Starcatchers” arts programme for young children, a music education project and an artist-in-residence programme.

The centre, which was forced to issue redundancy notices to its 22-strong workforce, is expected to operate with a skeleton staff of five for at least the next six months. The council’s support for the centre is dependent on the authority being given evidence that a proposed loan for 150,000 with HBoS has been confirmed and that the arrangements for the next few months have the backing of the Scottish Arts Council.

City sport and culture leader Councillor Deidre Brock said: “It is clear that the organisation is taking positive steps to tackle its financial problems, but it should be clear that the decision provides for the very short term only.”

The 3 million Pennywell Court complex - which has only been running for five years - was opened with the intention of showcasing theatre, dance, film and music. It is thought to attract some 40,000 people a year.

Ms Hicks said: “It’s crucial that we’re able to tell potential funders that we still have the backing of the council.”

February 22, 2008 — Moussa Bakir, a derivatives broker at Sociйtй Gйnйrale SA’s Fimat unit, was questioned for a second time by judges about Jerome Kerviel, blamed last month by the bank for its record trading loss.

Judges Renaud van Ruymbeke and Francoise Desset interrogated Bakir for three hours as part of their investigation into how Kerviel amassed 50 billion euros ($74 billion) in unauthorized positions, Paris prosecutors’ spokeswoman Isabelle Montagne said.

Sociйtй Gйnйrale reported a 4.9 billion-euro trading loss after it liquidated futures positions that Kerviel had concealed with fake hedges.

French judges this month named Bakir a material witness in their investigation into the trades.

Kerviel, 31, passed many of his transactions through Bakir. Fimat said it began looking into commissions Bakir received on trades for Kerviel in September.

The judges didn’t say whether they would call him for a third round of questioning, he said.

Sociйtй Gйnйrale merged Fimat with Credit Agricole SA’s futures brokerage last month to form a new entity, Newedge.

On Feb. 7, financial police searched Newedge’s headquarters on Paris’ Avenue des Champs-Elysees.

Bakir was taken into custody that day and held for 48 hours of questioning. He was released on Feb. 9.

Bakir has denied that he knew details of Kerviel’s activities.