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Footwear Industry News

Edcon 3rd quarter sales 2% down on previous year

Published: 20th Feb 2017
Author: Tony Dickson - S&V Editor

Johannesburg (SA) – Edcon’s 3rd quarter sales, including most of December, were down 2% on the previous year, CEO and MD Bernie Brookes told suppliers this week.
        In a letter dated February 21, he wrote:

        “Total revenues decreased by R185 million, or 2.0% from R9,163 million in the third quarter 2016 to R8,978 million in the third quarter 2017, which was due mainly to the weaker retail sales. Retail sales, which decreased primarily as a result of weak credit sales, were 2.8% lower at R8,441 million in the third quarter 2017 from R8,685 million in the third quarter 2016. Credit sales decreased by 8.7% whilst cash sales increased by 0.7% compared to the third quarter 2016. Retail sales in October and November of the current quarter were below expectations, but trading in December 2016 improved and was better than expected, largely as a result of numerous peak trading initiatives that we introduced over the period.”

        At the Edgars division, retail sales decreased by R87 million or, 2.5%, from R3,552 million in the third quarter 2016 at R3,465 million in the third quarter 2017.

        The discount division “continues to be negatively affected by declining credit sales. Credit sales decreased by 9.2% compared to the third quarter 2016, and cash sales decreased by 3.0% due to customers in this division being more susceptible to difficult macroeconomic circumstances. Total retail sales decreased by R151 million, or 4.9%, from R3,101 million in the third quarter 2016, to R2,950 million in the third quarter 2017.”

        At the Specialty division, total retail sales for the third quarter 2017 was R1,838 million, a decrease of R7 million, or 0.4% compared to retail sales of R1,845 million in the third quarter 2016. Credit sales decreased by 4.7% whilst cash sales increased by 1.1%. Ladieswear, menswear, childrenswear, cosmetics and homewear reported positive sales growths compared to the third quarter 2016, while footwear, cellular, reading, stationery and entertainment and digital underperformed.

        Sales from other African countries decreased by 1.4% compared to the third quarter 2016, and contributed 10.6% (8.6% excluding Zimbabwe) of retail sales for the third quarter 2017, slightly up from 10.5% (8.5% excluding Zimbabwe) in the third quarter 2016.

        “Progress has been good,” he wrote in closing. “There is new energy, excitement and urgency among our 48 000 employees, and I am certainly encouraged that a new, strong and robust Edcon is fast becoming a reality, and which is set to re-emerge as the leading clothing retailer in Africa.”

Have you pre-registered yet to attend the India Leather & Footwear Trade Expo in Cape Town in March?

Published: 20th Feb 2017
Author: Deidre Harte; LTE

Cape Town (SA) – The Council for Leather Exports (CLE), an initiative of the Ministry of Commerce & Industry, Government of India, invites all chains and independent store buyers, importers, distributors, agents and other important industry decision makers to attend their top class event featuring 45 reputable manufacturers from India. The trade expo will take place on 8 & 9 March at the CTICC in Cape Town. The exhibitors will be showcasing their latest ranges exclusively to the Southern African industry including –

1. Ladies, men’s, children’s leather and non-leather footwear
2. Leather Garments
3. Leather goods including handbags, belts, wallets, gloves, travel portfolios, etc
4. Finished leather – buffalo, cow, sheep and goat
5. Safety footwear and gloves
6. Shoe Components -  welt and veneer heel covers, soles, shoe lasts, shoe uppers, etc.

The Council for Leather Exports will also be present at the show to provide invaluable assistance and information to South African businesses regarding sourcing from India. Pre-register your visit on-line at today and receive the following on arrival at the show next month -
* Free entrance – your badge will be printed on arrival at the show
* A show catalogue listing all participants and their contact details
* Complimentary tea/coffee and delicious pastries in the business lounge inside the hall
The exhibitor list is available from the local show organiser, LTE – leaders in trade exhibitions. Contact Deidre Harte on Tel: +27 21 790 5849 or Email:

Micam: Attendance up 5%

Published: 20th Feb 2017

Milan (Italy) – The 83rd edition of Micam closed last week with attendance up 5% at 44,610, according to a release.

        Visitor numbers were 26,505 international (up 8%) and 18,105 Italian (up 1.2%). Of the 1 405 exhibitors, 795 were Italian and 610 international.

        On the international front, the number of visitors from Russia grew by 18% and from Ukraine by 20%. South Korea was the best performer, with numbers up by 53%. Among European visitors, numbers from Germany increased by 10% but decreased by 7% for France.

        “The sensational new development of this edition was marked by the presence of Fendi, Ferragamo, Gucci, Prada and Tod’s, which chose to attend the event for the first time ever to do their bit to support Italian manufacturing and the young designers at the show,” the report said

Okapi closes shank plant

Published: 13th Feb 2017
Author: Tony Dickson - S&V Editor

Pinetown (SA) – The Okapi division of Southey Holdings Industries, one of two local manufacturers of steel shanks for footwear, has decided to discontinue production of that line as of this month.

        Accountant Derek Wright said shanks were one of a basket of products to be discontinued, and that the group would concentrate on the products “which generate 80% of our turnover”.

        “Our last sale of shoe shanks was actually a year ago, in February 2016,” he said. “The company also closed its Isithebe factory in September, and relocated to group premises in Pinetown.”

        He said Okapi planned to dispose of its stocks of shanks “at competitive prices”. – [+27 (0)32 459 2883,]

Nikkita raid: No charges for now, most workers released

Published: 6th Feb 2017

Durban (SA) – There are no formal charges at this stage against Nikkita Footwear cc or its members, following a raid last Wednesday by the SAPS and the Department of Home Affairs, Sid Singh of Pather & Pather Attorneys Inc said today.

He said at a court appearance on Thursday, the prosecutor had declined to place the matter on the roll – citing insufficient evidence without further investigation.

During the raid, all entrances to Nikkita and its sister company, component manufacturer Brit Footwear, were blocked. A number of staff were identified as potentially illegal immigrants. Some were carrying papers indicating they were both legal immigrants and had work permits. Others were taken to their places of residence to produce those documents. 35 were taken into custody. Nikkita employs around 170 staff and Brit around 35.
However, one of the members of Nikkita said that 32 of those had been released without bail, but that there was no further information relating to the remaining 3.
Fellow member, Shaun Ganesh, had his bail of R5 000 returned after the court appearance.
Ganesh said all staff, including those who had been taken into custody, had been paid rates stipulated by the Wage Agreement.
©2017 S&V Publications