Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries

PLEASE NOTE: We are currently busy with the rollout of the new website so there are elements that are currently still being tweaked and content being added.

S&V Weekly Newsletter Vol.3 No.44, November 6, 2017

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

 

TFG: 6-month results 'satisfactory in difficult circumstances'

Cape Town (SA) – The Foschini Group (TFG) grew turnover to a record R12.5 billion for the 6 months to September 30, according to results released last Thursday.
       During the same period, TFG expanded its Australian operations with the acquisition of menswear retailer the Retail Apparel Group (RAG) for UAD 293,9 million (R3 000,2 million) and 14 G-Star RAW franchise stores for AUD13,9 million (R141,8 million).
       The acquisitions pushed profit down marginally by comparison with the same period in 2016.


  2017 2016 % change
Retail turnover (Rm) 12 469,1 11 415,7 9,2
Operating profit before acquisition
costs and finance costs
1 883,2 1 729,1 6,0
Acquisition costs (48,6) -  
Profit for the period 1 041,0 1 042,8  


       Total group retail turnover was 9.2% up, with 5% growth in TFG Africa and 4.1% in TFG London, with the balance coming from TFG Australia. Comparable store turnover growth of 1,0% was achieved in TFG Africa.
       The previously named International division, comprising of the Phase Eight and Whistles brands, has been renamed to the TFG London division, and there will also be a TFG Australia reporting division. Together, they will form a new international division.
       "The Group performed satisfactorily against a backdrop of difficult political and economic conditions in both South Africa and the United Kingdom, two of the three major economies in which we trade, and against a strong base in the corresponding period," the report said.
       "Group cash turnover grew by 11,1% for the period with growth of 3,8% (ZAR) in TFG Africa and 4,1% (GBP) in TFG London with the balance coming from TFG Australia. The low cash turnover growth in TFG Africa was due to the challenging trading environment as well as the high base of 19,0% growth achieved in the corresponding prior period. Turnover growth in TFG London was driven by online channels, which now accounts for 28,3% of their total turnover, as consumers shop less in high streets in favour of e-commerce channels. Total cash turnover now contributes 62,5% to total Group turnover (Sept 2016: 61,4%).
       "Group credit turnover growth at 6,2% was stronger than the growth in the corresponding period of 1,4%. This was in line with expectation, as the negative impact of the Affordability Regulations is now in the base.
       "Group gross margin for the period improved to 51,0% from 49,6% at September 2016. In TFG Africa, gross margin improved across all merchandise categories with the exception of cosmetics. Total gross margin for TFG Africa was 46,7% compared to 45,5% at September 2016. TFG London’s gross margin was 63,6% (Sept 2016: 63,9%)."

 

 

U.S. looking to up exports to Africa

Washington (DC) – The United States is investigating 7 sub-Saharan African (SSA) countries with a view to increasing U.S. exports, according to a letter dated October 16 from the United States Trade Representative in the White House to the U.S. International Trade Commission. The letter asks the ITC to "provide profiles of the markets in Cameroon, Cote d'Ivoire, Ethiopia, Kenya, Mauritius, Nigeria, and South Africa that include information on macroeconomic indicators, goods and services trade, and FDI flows in those countries".
       "As the Administration works to encourage fair and reciprocal trade with our African trading partners, it is important to have factual information on where we are succeeding in African markets, where we have the greatest prospects for increased trade and investment, and the factors that could impede that progress. We also need similar information on SSA's trade performance and on future prospects for its exports to the United States, including those under the African Growth and Opportunity Act (AGOA)," Ambassador Robert E. Lighthizer wrote to Rhonda Schmidtlein, chairman of the U.S. International Trade Commission.

 

 

Breakfast seminars alongside ATF – China Premium Tex trade exhibition this month

Cape Town (SA) – The ATF Trade Exhibition & China Premium Tex will take place from 21 – 23 November in Hall 4A, CTICC, Cape Town and will offer key industry decision makers from chain stores, independent retailers, mini-chains, boutiques, importers, distributors, factory managers, etc. the opportunity to meet with 140 international manufacturers and suppliers from 10 countries. Register online @ www.atfexpo.co.za or call 021 790 5849 for more info. No entry fee but open to trade only.

To book your seat at the breakfast seminar/s below, email atfexpo@worldonline.co.za. There is no fee to attend but seats are limited and will be allocated on a first come first served basis.

Tuesday, 21 Nov – 12pm- 12.45pm – Trend Talk
Speaker: Nicola Cooper, Owner, Nicola Cooper & Associates
Senior Trend Analyst of Fashion, Lifestyle and Pop Culture, Nicola Cooper, focus’ on explaining trends from a global to local, local to local and local to global perspective with strong focus on the socio political, technological and environmental trends shaping the mindset of the current and future African consumer. In this explorative, illuminating, and insightful Trend Talk, Nicola Cooper focuses on pioneering African trends; unpacking the various lifestyle elements associated and the effect that this will have on lifestyle, fashion, advertising, retail and emerging consumer markets for 2017/18.
 

 



Wednesday, 22 Nov – 9.30am-10.15am - Topic: The Future of Business & Retail
Speaker: Dave Nemeth, Owner, Trend Forward
A leading international company recently identified Dave as one of the top creative influencers in the country.    Brief Overview: The only certainty in business today is the death of business as we know it. This presentation, which is based on a year’s research will look at the disruptions which businesses and specifically retail are currently facing. It will cover areas such as – macro trends affecting business and retail, current consumer attitudes, technology and retail space, the future of retail, the changing face of corporate culture, the changing face of company structure.

Thursday, 23 Nov – 9.30am-10.15am - Topic: The changing Apparel Retail  Landscape in SA
Speaker: Brett Kaplan, Independent Retail Consultant, Choppies Superstores
Brett was the Managing Director Clothing and General Merchandise at Woolworths for 37 years. He was instrumental in building the clothing and general merchandise business into the success that it is today.
  Brief Overview: The globalisation of retail is a reality with both northern and southern hemisphere taking full advantage of the ‘untapped African opportunity’ with SA at the centre of this development. What many retailers learn about  SA is that a ‘cut and paste’ approach does not always deliver results as SA consumers have a specific fashion appreciation which is unlike other regions including Australia albeit  a southern hemisphere lifestyle. The entrance of international retailers such as H & M and Cotton On with significant footprints in prime locations have changed the competitive landscape forever and local retail need to think and act differently to meet this change and win.

 

 

 

They Said It

"Drink lots of good wine?" - Kasodur director Alan Richards in response to a question for our business barometer. We asked:  What are you or can you do about trading conditions?

"Oops!! But he does have us at a disadvantage. Is he not The Batman? Complete with super senses 'n all?" - S&V webmaster Jonathan Commons, responding to Rolfes Leather MD Quintin Marais finding an error in the newsletter.

 

Diary

November 21-23: ATF Trade Exhibition, Cape Town International Convention Centre. Deidre Harte, +27 (0)21 790 5849, atfexpo@worldonline.co.za

 

 

Birthdays this week

06/11/1950: Idris Kajee, Favourite Sports, Newcastle.
07/11/19??: Garth Ribbinck, A Greenaways Natal, Durban.
07/11/1966: Leslie Govender, Godvast, Durban.
07/11/1971: Ajay Singh, United Agencies, Durban.
08/11/1959: Ashmore Matemera, DyStar Boehme Africa, Harare, Zimbabwe.
08/11/1967: ISW Smit, Clarens Curio, Clarens.
08/11/1974: Louis de Sousa, Price Rite, Welkom.
09/11/1938: Johnny Makrides, Intershu Distributors, Johannesburg.
09/11/1963: Sanjay Pattundeen, Caprini Footwear, Durban.
09/11/1972: Chrisi Janse van Vuuren, Chrisi Artwear, Harrismith.
09/11/1977: Darrell Naidoo, Sidekicks, Alberton.
10/11/1961: Granville Steyn, DyStar Boehme Africa, Pietermaritzburg.
11/11/1940: David Chasi, Zambezi Tanners, Bulawayo.
11/11/1941: Brian Gurney, retired, formerly Watson Shoes, Great Brak River.
11/11/1947: Trevor Espey, agent, Cape Town.
11/11/1951: William Scalco, LTE, Cape Town.
11/11/1961: Wayne and Anthony Matthysen, WAM Agencies, Durban/Johannesburg.
11/11/1963: Thammo Schull, Capcorv Recycling, Germiston.
11/11/1964: Jacoba Nel, Conloo Joinery, Welkom.
12/11/1954: Kevin van Staden, retired, formerly Bolton Footwear, Port Elizabeth.
12/11/1966: Bevin Horwitz, agent, Pretoria.

 

 

In Memoriam this week

07/11/2004: Ralph Mossop (b. 04/12/1913), Mossop & Son (now Mossop Western Leathers), Cape Town.
08/11/1993: Roy Lagerwall, Saxian Trading, Johannesburg.
09/11/2004: Trevor Rink (b. 15/08/1947), Cuthberts/Boyman’s [both closed], Johannesburg.
10/11/2013: Barry Nash (b. 06/09/1952), King Tanning [closed], and Buckman, Port Shepstone.
12/11/1997: Angus Ogilvie, Ogilvie's Shoes [closed], Pietermaritzburg.

Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.

 

 

ABSA Agri Trends 2/11: Hides & skins prices

The average hide price over the past week was 0.6% higher at R12.19/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
19/01 15.34 45.56 81.38
24/01 15.17 40.92 89.52
31/01 15.10 46.00 94.55
14/02 14.65 47.33 95.29
15/03 14.25 39.30 78.75
24/03 14.13 45.27 94.45
28/03 14.07 45.27 94.45
04/04 14.83 41.92 87.58
11/04 14.68 41.92 84.12
19/04 14.77 43.85 92.32
25/04 14.75 41.25 92.27
04/05 14.79 43.33 92.69
10/05 14.75 40.50 88.41
16/05 14.58 40.83 90.96
31/05 14.62 40.50 87.95
09/06 14.58 41.82 96.35
23/06 14.40 40.42 101.25
29/06 14.30 41.36 98.44
07/07 14.33 43.33 100.94
13/07 14.37 44.44 114.58
28/07 14.14 43.64 97.50
04/08 14.16 43.69 99.64
14/08 14.08 38.99 92.75
18/08 13.70 43.18 98.96
25/08 13.93 43.75 100.96
01/09 13.14 44.09 101.25
08/09 12.88 41.82 100.83
21/09 12.64    
03/10 12.50    
11/10 12.52    
20/10 12.23 39.30 110.23
27/10 12.12 37.30 94.32

 

Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

  


Classified Adverts

In need of a Boardroom/Meeting room?  SAFLEC is situated in Westville and has a boardroom seating 12 people (with space to add chairs within the room), than can be hired out to interested parties.

For more information, please contact Louise on 031 266 1473 or louise@saflec.co.za.

SAFLEC looks forward to having your support and you may view the room before hiring.




  

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: November 13, 2017.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za

 

 

©2017 S&V Publications