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Industry News

South African & East African Footwear and Leather Goods, Leather and PPE 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 www.urexpo.com 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: deidreh@worldonline.co.za

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

Interventions and progress made by DAFF on drought

Published: 20th Feb 2017
Author: From Makenosi Maroo; Chief Director: Stakeholder Relations and Communications

Pretoria (SA) – The Department of Agriculture, Forestry and Fisheries has made significant and palpable progress with regard to drought relief interventions nationwide. DAFF went through a difficult period last year because of the drought. The continued low rainfall resulted in very dry conditions with drought being reported in all nine provinces. As a result eight provinces, excluding Gauteng, were declared a state of drought disaster.

        As part of its continued efforts to assist distressed farmers, DAFF engaged with all relevant stakeholders regarding the drought situation to find solutions to the drought disaster which the country is facing. DAFF further requested funds for drought assistance from the National Treasury through the National Disaster Management Centre (NDMC) in the Department of Cooperative Governance and Traditional Affairs (COGTA), following the verification of drought situation in the declared areas.

        As a result of these assessments; National Treasury made an amount of R212 million available for the financial year 2016/17 to assist affected farmers across the country. Provinces have made R198 million available through equitable share funding. These funds were utilised to assist the affected farmers. Funding from programmes such as the Prevention and Mitigation of Disaster Risk (PMDR) programme were also expended with interventions on borehole drilling and construction of fire breaks.

        DAFF management in consultation with NDMC and National Treasury took a decision to procure animal feeds on behalf of the provinces based on, but not limited to, the following reasons:

 

  • Allocated timeframe within which the Scheme must be implemented
  • To control financial mismanagement and unaccountability
  • To enhance monitoring and evaluation as well as reporting

All the affected provinces are implementing the allocated R212 million as part of assistance to the affected farmers. Deliveries and distributions of feeds are almost complete in the affected provinces. DAFF is expected to continue offering much needed support to the affected farmers. – [+27 (0)12 319 6787, +27 (0)72 475 2956, MakenosiM@daff.gov.za]

Sutherland Tannery: Latest

Published: 13th Feb 2017
Author: From Neil Button; Stowell Estate Administration Trust

Pietermaritzburg (SA) – The business rescue practitioners (BRP’S) held the first meeting of creditors in terms of the provisions of the companies act on the on the 7th November 2016.

        At this meeting the BRP’S proposed that an extension be granted for the drafting and submitting of a business rescue plan.

        The meeting voted in favour of an extension and the BRP’S are required to draft a business plan by the 13th February 2017, publish the plan by the 20th February 2017 and hold a meeting of Creditors  by no later than the 27th February 2017.

        The BRP’S have received a written offer from an interested party which will be included in a business plan and we are in the process of finalising the terms and conditions therein.

        Because of the delays in receiving the offer, the BRP’S are unable to draft and submit the business rescue plan in terms of the extension granted on the 7th November 2017 and will apply to creditors on the 27th February for an extension of time to lodge the business rescue plan.

        It is anticipated that the plan will be presented to creditors during the beginning of May 2017.

©2017 S&V Publications