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S&V Weekly Newsletter Vol.4 No.30, July 30, 2018

This Newsletter is sponsored by SAFLIA

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

 

Footwear strike: CCMA to attempt mediation today

Durban (SA) – SAFLIA and both unions, NULAW and SACTWU, have agreed to an offer by the CCMA to mediate in the strike, now entering its fourth week. They will meet this morning, starting at 8.
       Last Tuesday the employers increased their offer from 6.25% to 7%, which was rejected by both unions. NULAW is demanding 7.5% and SACTWU 8%.
       All parties have agreed to a meeting with the CCMA this morning. The National Bargaining Council of the Leather Industry employed a CCMA commissioner to mediate on June 28, before the strike began, without success.
       The unions announced their acceptance of the CCMA's 'offer' last Thursday, and that they "eagerly awaited" a response from SAFLIA. On Friday, SAFLIA said "a delegation of the SAFLIA negotiation team will be present".
       National Bargaining Council general secretary Gerald Naidoo said the CCMA had appointed "one of its very senior commissioners" to conciliate.
       The strike is the longest in the sector since at least 2006, and an observer who has followed events closely said he was concerned that relationships between the sides had been compromised.
       "They have to work together when the strike is over," he noted.

 

 

Woolworths: Fashion focus of recovery

Cape Town (SA) – Woolworths Holdings Ltd's 'medium term' target is to raise the operating profit margin of Woolworths' fashion, beauty and home division to 16%-17%, higher than any other division in SA or Australia, according to the interim results published recently. The division was the poorest performer in the results for the year ended December 24, 2017.
       Sales for the division were 0.2% lower, with comparable sales 3.4% lower and 3.6% net new space. Gross profit margin was 1.1% lower "due to higher markdowns and promotional activity", and operating profit was 13.1% lower. The results were blamed on "poor performance in women's wear, particularly Edition". Lingerie, kids' wear, home and men's wear performances were "in line with the market", and there had been "strong sales growth in beauty". Footwear and leather goods were not mentioned specifically.
       Its strategy would be to "fix women's wear" by improving design and buying with a new design structure and new appointments. It would "celebrate the Woolworths brand", and would use sub-brands "only where they add value and are customer relevant". The goal would be to be "a destination for the 35–55 year old modern customer who does not want classic merchandise", and to "focus on key items across all ranges that represent the best in fabric, fit, finish and value".
       Summarised results for the rest of the group were: Turnover up 2.5%, adjusted profit before tax down 8.8% • Headline earnings per share declined by 15.0% • Interim dividend declined to 108.5 cps, in line with dividend cover policy • Continued strong and above market Woolworths Food sales growth • Strong performance from Woolworths Financial Services • David Jones impacted by macro-economic environment and poor/delayed execution of certain key initiatives, although performance improved in Q2 • Carrying value of David Jones assets reduced by A$712.5 million • Above market performance from Country Road Group. - Source

 

Dangee Carken moves to bigger premises

Johannesburg (SA) – Dangee Carken has moved to 8000 m² premises at 23 Spartan Road, Eastgate Extension, very close to its previous premises.
       MD Robby Stoller said the office/warehouse/factory shop complex, which the company has bought, were 3 times larger than its old premises.
       "We had a 4-year lease in Delphi Street, which we outgrew in 2-and-a-half years, and we were fortunate to be able to get out of it. Growth has been phenomenal."

 

 

Hush Puppies' charity calendar

Johannesburg (SA) – Hush Puppies Southern Africa' annual charity calendar initiative will raise funds for a library.
       The release reads: In honour of Hush Puppies 60 Year Anniversary, please help us embark on a journey to build a SHOUT Library for our unprivileged communities. The Hush Puppies annual charity calendar initiative will kick off with an event on August 2nd where 12 celebrities and various media personnel will paint their interpretation of a decade on a pair of shoes. The content and amazing art created on the day will be used to create a 2019 calendar which proceeds will go towards building a Shout library to enrich the lives of our youth. We invite companies to buy a page on our calendar in the form of a sponsorship to have their logo at the bottom of the page of the chosen celeb, our goal is to sell 15 000 calendars. Please visit www.hushpuppies.co.za for more information on how to get involved by pre ordering a calendar or donating to the cause.

 

 

Amazon.com announces second quarter sales up 39% to $52.9 billion

Seattle (SA) July 26, 2018 – Amazon.com, Inc. announced financial results for its second quarter ended June 30, 2018.
       Net sales increased 39% to $52.9 billion in the second quarter, compared with $38.0 billion in second quarter 2017. Excluding the $760 million favourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 37% compared with second quarter 2017.
       Operating income increased to $3.0 billion in the second quarter, compared with operating income of $628 million in second quarter 2017.
       Net income increased to $2.5 billion in the second quarter, or $5.07 per diluted share, compared with net income of $197 million, or $0.40 per diluted share, in second quarter 2017.
       Among a long list of 'highlights' listed in the report was: Amazon Fashion launched Prime Wardrobe in the U.S., allowing Prime members to try clothing, shoes, and accessories before they buy. Customers can choose from eligible styles, have up to seven days to try them on at home, and are charged only for those items they decide to keep. - Source

 

They Said It

"I don’t think I can get an article to you this time. I finished a course on Friday, then had to complete some course notes, need to mark the students' tests today some time that were written on Friday, and then have another course starting tomorrow. With this series that I am doing, it takes quite a while to read articles that I then need to summarize into your article. I could try later in the week but that may be too late. I know all these excuses will fall on deaf ears, but they are genuine and I would not purposely make an excuse. As you know, I love writing your articles!!!"." - ISTT head Dr Clive Jackson-Moss. How I battle to keep these correspondents in line.

 

Exchange rates

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ Yuan Renminbi ¥
11/12/2017 R15.82 R17.99 R13.40 R2.03
05/01/2018 R14.86 R16.69 R12.33 R1.90
13/01/2018 R15.14 R17.03 R12.41 R1.92
22/01/2018 R14.76 R16.75 R12.08 R1.88
26/01/2018 R14.74 R16.79 R11.86 R1.87
05/02/2018 R14.96 R16.89 R12.02 R1.91
12/02/2018 R14.64 R16.51 R11.95 R1.88
16/02/2018 R14.43 R16.30 R11.63 R1.83
23/02/2018 R14.19 R16.12 R11.54 R1.82
05/03/2018 R14.60 R16.39 R11.85 R1.86
12/03/2018 R14.58 R16.43 R11.82 R1.86
16/03/2018 R14.72 R16.70 R11.97 R1.89
23/03/2018 R14.53 R16.60 R11.75 R1.86
03/03/2018 R14.58 R16.62 R11.83 R1.88
11/04/2018 R14.75 R16.91 R11.93 R1.90
16/04/2018 R14.89 R17.23 R12.04 R1.91
23/04/2018 R14.99 R17.11 R12.27 R1.94
30/04/2018 R15.06 R17.16 R12.47 R1.96
07/05/2018 R14.96 R16.98 R12.55 R1.97
14/05/2018 R14.60 R16.54 R12.21 R1.92
22/05/2018 R14.84 R16.92 R12.61 R1.97
28/05/2018 R14.47 R16.55 R12.43 R1.94
04/06/2018 R14.70 R16.78 R12.54 R1.95
11/06/2018 R15.46 R17.55 R13.10 R2.04
18/06/2018 R15.63 R17.83 R13.45 R2.09
25/06/2018 R15.89 R18.05 R13.60 R2.07
02/07/2018 R16.10 R18.18 R13.87 R2.08
09/07/2018 R15.79 R17.90 R13.41 R2.02
16/07/2018 R15.45 R17.50 R13.19 R1.97
23/07/2018 R15.82 R17.72 R13.52 R1.99
28/07/2018 R15.36 R17.26 R13.17 R1.93

 

 

 

30/07/1959: Alan Munsamy, Nulaw, Durban.
30/07/1949: Gerald Batt, last with Uber Gruvi [closed], Cape Town.
30/07/1973: Marco di Lembo, Villani Shoes, Johannesburg.
30/07/1973: Frankie Sequeira, Novel’s Outfitters & Shoe Store, De Aar.
31/07/1940: David Berry, retired, formerly Rockshoes [closed], Pinetown.
31/07/1969: Mark Dicks, emigrated, formerly Prime Leathers, Pinetown.
02/08/19??: Brian Haarburger, Paris Belts, Johannesburg.
02/08/1946: Burt Coburn, ?, Cape Town.
02/08/1971: JJ du Plessis, Strassbergers, Clanwilliam.
02/08/1991: Samantha du Plessis, Chillisource, Durban.
03/08/1941: Rolf Haesloop, Haesloop Agencies, Pinetown.
03/08/1972: Fazel Allie, Arma Trading, Botswana.
03/08/1928: Gerry Elder, retired, Cape Town.
05/08/1933: Roberto Marchesi, designer, Cape Town.
05/08/1953: Iqbal Moosa, Jumbo Footwear, Pietermaritzburg.
05/08/1956: Rafiq Shah, Evoné, Pietermaritzburg.
05/08/1964: Christo Nel, Conloo Joinery, Welkom.
05/08/1979: Deepesh Ghela, National Adhesive Manufacturers, Pietermaritzburg.

 

In Memoriam this week

03/08/1999: Otto Guldimann (b. 2/10/1922), Cellini [closed], Cape Town.
03/08/1992: Malcolm Kueghn, Hi-Tec Sports, Johannesburg.
03/08/2007: Noel Amery (b. 05/09/1944), Clarens Leather [closed], Clarens.
04/08/2006: Peter Gibbings (b. 31/01/1922), Apeco, Port Elizabeth.
05/08/2002: Darryl Austin (b. 21/02/1947), Austin Shoes, Karmino Shoes [both closed], Pietermaritzburg.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

 

ABSA Agri Trends 06/07: Hides & skins prices

Overall, the hide market sentiment remains bearish, in line with the weak international hide market. Shipments to Italy are expected to be limited as well, weighing on the market. There are also indications of oversupply in South America which further add pressure on the market. The average hide price over the past week was R7.04/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. The average price for Dorper skins was R32.14, and for Merino skins was R86.67.

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
02/11 12.19    
10/11 12.24 37.00 101.75
30/11 11.82 32.56 94.25
07/12 11.76 35.50 92.50
14/12 11.53 35.50 91.86
02/02 10.39 32.50 92.22
09/02 10.17 33.13 91.27
16/02 9.94 32.50 88.26
16/02 9.94 32.50 88.26
16/03 9.62 33.75 90.50
23/03 9.56 32.22 87.63
06/04 8.86 36.67 82.50
13/04 8.98 35.00 81.25
23/04 8.40 35.13 86.00
26/04 8.18 34.13 86.11
07/05 7.89 33.33 83.13
18/05 7.71 33.50 82.22
25/05 7.78 31.38 86.06
01/06 7.74 30.71 95.89
08/06 7.43 31.67 87.50
15/06 7.67 32.11 87.40
22/06 7.60 32.50 86.70
29/06 7.13 32.78 86.50

 

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

TOP SALES AGENT WANTED

For Gauteng: To sell Men's and Ladies' Footwear .


Contact:
Stan Rabinowitz
Footwear Direct cc
083 310 2687
stan@footweardirect.co.za




In need of a boardroom?

SAFLEC, situated at 6 Stedman Mews, 128 Jan Hofmeyr Road, Westville, has a boardroom for hire.
       It seats up to 12 people around a table, and has space to add up to 15 more chairs in the room. You are welcome to view the room before hiring.
       For more information, please contact Louise on 031 266 1473 or louise@saflec.co.za.
We look forward to being of service.




  

Contact us

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

Next newsletter: August 6, 2018.

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

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