Study Details CE Market
New York City, The average adult spends $1,200 per year on consumer electronics (CE), according to a recent study by the Consumer Electronics Association. The study found that digital video recorders, MP3 players and digital cameras were among the biggest growth sectors. The number of households owning a DVR system grew eight percentage points since 2005 to 25%, MP3 ownership rose seven percentage points to 32% and digital-camera ownership rose to 62% of all U.S. households.
The study also found significant growth in HDTV ownership, which is now found in a quarter of U.S. homes. DVD players have reached 84% household penetration and have surpassed VCRs, partially because of the availability of portable DVD players, the study found.
Children and teens continue to have a growing influence on the CE market. The study found that teens spend $350 each year, about half of their total annual discretionary income, on consumer-electronics products. In addition, adults with children and teens spend up to $500 more on CE purchases than the national average.
BJ’s CEO Paid $4.4 Million
Boston, B.J. Wholesale Club chairman and CEO Herbert J. Zarkin was compensated $4.44 million in 2006, which included more than a half-million dollars to pay for private jet flights that, among other trips, logged flights from Zarkin’s Florida home in Boca Raton and the company’s headquarters in Natick, Mass. The analysis is based on a regulatory filing.
In response to press inquiries about the expenditures, the company issued the following statement: “In establishing its travel policies, BJ’s weighs carefully the costs and benefits of executive travel options including factors such as convenience, efficiency and the safety and security of key executives. According to the company’s strict policy, noncommercial air travel is authorized for the chairman of BJ’s board of directors and CEO, as well as certain other key BJ’s executives.”
RadioShack Cutting 280 Jobs
Fort Worth, Texas, RadioShack Corp. is cutting about 280 jobs this month, primarily at the company’s headquarters, according to a Securities and Exchange Commission filing Thursday.
The cuts will be made across all of its “various support functions,” the company said, noting that the move is expected to generate annual pretax savings of about $30 million.
The company said that it expects to incur a pre-tax charge of about $8.5 million for one-time termination benefits as the result of the reductions.