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S&V PUBLICATIONS WEEKLY NEWSLETTER

The S&V newsletter is published weekly to our newsletter mailing list and is also published to our web site. 

S&V Weekly Newsletter Vol. 4 No. 42, Oct 22, 2018

This Newsletter is sponsored by SAFLIA

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

 

Government tenders delay - suppliers 'have little option but to accept extension'

Pretoria (SA) – The National Treasury's contract management division, which awards tenders for products for government departments procured from the private sector, has still to award the 2018 RT59 footwear contract, and has asked suppliers to accept a second extension of the 2017 contract to November 30 - meaning any footwear supplied before then will be at 2017 contract prices.
       Footwear for government departments - mainly the SANDF, SAPS and Correctional Services - is ring-fenced for local manufacturers using locally-made components. It is also a crucial market for welted footwear.
       SAFLIA executive director Jirka Vymetal said the situation was difficult for affected manufacturers, but that they had little choice but to accept Treasury's request.
       The RT59 contract period usually coincides with government department financial year ends, running from April 1 to March 31. The footwear tender is normally advertised in September and awarded in February or March.
       RT59-2017 was extended on March 29 this year for 6 months (to end September) to allow Treasury to finalise RT59-2018. This was finally advertised in the Government Gazette on May 4 with a closing date of June 6. It was advertised as a 3-year contract, running from October 1 2018 to September 30 2021.
       On May 15, the closing date was extended June 25 due to discrepancies in the bid documents. In June, additional price schedules were loaded on the E-tenders website, and Treasury extended the closing date to July 2.
       On September 21, Treasury requested a further extension to November 30 as they were unable to complete the adjudication.
       Footwear manufacturers who regularly compete for government tenders say there is not much margin in the business, and that its main value is keeping the factory busy during lean months.
       "Since March, the fuel price has moved from R14.72 a litre to R16.85 a litre, the Rand has weakened, Eskom got a 7.32% tariff increase, and municipal tariffs have gone up on average 6.4%," Vymetal said.
       "The tender, which is taking an unusually long time to adjudicate, does create some uncertainty in that Departments are ordering their requirements for year 1 of the tender against the RT59-2017 contract which means that no/limited orders will be placed against year 1 quantities on RT59-2018. In some cases other departments have gone out on their own tenders as they cannot wait for the award while their staff require uniforms. Which also means that their year 1 requirement will not be ordered against RT59.
       "I am aware there has been a change in personnel at Treasury and this RT contract is a learning curve for the new staff. I believe there is a lack of sufficient knowledge on the specifications of the footwear, its local content and the intended function/purpose which these footwear products serve. This issue is both in treasury and in the departments that are procuring against the RT59 tender. This creates uncertainty in selecting the appropriate/correct footwear.
       "Over the years there has been a dramatic drop in tender quantities and due to complexities of footwear manufacturing the viability of producing these are sometimes questionable.
       "Extending tender dates makes it difficult for factories to do future planning however we have nothing to gain by obstructing the situation that Treasury finds itself in."
       On Friday, a spokesperson for Treasury said it would respond to queries this week.

 

 

Closures

Cape Town (SA) – Upmarket Waterfront outfitter The Yacht Squadron has closed. Owner Eugenie Solkow said: "Unfortunately, due to a relocation within the Waterfront by the landlords, increase in rent and a terrible summer season due to our drought, my business went into liquidation end of June 2018 after successfully trading for 27 years. It was a very hard decision to make. I am not involved in apparel at this stage."

Durban (SA) – "I have closed the Via Uno store at the Pavilion. Their rents are crazy," Paulo Vieira of wholesaler Popular Trading said. He now has a Via Uno store in Hillcrest, but only until next year. "Then I’m also closing it. I’m tired of retail."

Grahamstown (SA) – Gift shop Voilá, which included upmarket imported women's footwear in its product mix, has closed, owner Colleen Rippon has confirmed.

Hermanus (SA) – Hamish and Amanda Hofmeyr, the new owners of The Village Health Shop - now Health at the Village - say they are moving away from shoes.

 

Openings

Durban (SA) – Creative Footwear opened earlier this year in the same premises, and making much the same infants' and children's products, as Papino Footwear, which had closed. Samantha Lakshman Arjoon is the managing member.

 

 

US retail giant Sears files for bankruptcy

Sears, the US retailer that that once dominated America's shopping malls, has filed for bankruptcy.
Sears Holdings - which also owns Kmart - filed for Chapter 11 bankruptcy protection on Monday.
The company has suffered, along with many other traditional retailers, from rising online competition from firms such as Amazon.
       Sears has been closing stores and selling properties as it grapples with debts of more than $5bn.
       The company employs nearly 90,000 people in the US, although that is down from 246,000 five years ago, and in its heyday it had more than 3,000 stores.
       It became America's largest retailer before being overtaken by Walmart in the 1980s.
       The firm filed for bankruptcy petition after it reportedly could not meet a $134m repayment due on Monday.
       Chapter 11 protection postpones a US company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business.
       Eddie Lampert - who is the company's chief executive, biggest investor and landlord - had attempted to restructure its debts to avoid bankruptcy.
       In a statement, he said: "Over the last several years, we have worked hard to transform our business and unlock the value of our assets.
       "While we have made progress, the plan has yet to deliver the results we have desired."
       Announcing its bankruptcy filing, Sears also said it would close 142 unprofitable stores by the end of the year, on top of the previously announced closure of 46 stores by November.
- Sears was founded by Richard Warren Sears and Alvah Curtis Roebuck in 1886 as a mail order catalogue company, and opened its first retail locations in 1925.
- It was America's largest retailer by revenue until 1989, when Walmart overtook it, but remains one of America's biggest department store groups.
- The company also owns Kmart as well as a range of other brands.
- Its revenues were $16.7bn in 2017, almost half the $31.2bn posted in 2014.

'Tarnished' brand
Some analysts say Sears' problems were exacerbated by a lack of investment in stores.
Neil Saunders of GlobalData Retail said Sears' troubles began in the 1980s when it became "too diversified and lost the deftness that had once made it the world's largest and most innovative retailer".
"That a storied retailer, once at the pinnacle of the industry, should collapse in such a shabby state of disarray is both terrible and scandalous," he said.
"The brand is now tarnished just as the economics of its model are firmly stacked against its future success."
Sears was founded in 1886 as a mail order catalogue business and later expanded into bricks-and-mortar stores to become a fixture in shopping malls across the US.
But its fortunes took a turn for the worse in the 1990s amid competition from low-cost chains such as Walmart.
Mr Lampert's hedge fund, ESL Investments, took a stake in Sears in 2004, later combining it with Kmart with the aim of restoring its profitability.
He and his affiliates now own about 49% of Sears.
Despite the investment, Sears never regained its footing. It racked up more than $6bn in losses between 2013 and 2017, while annual revenues more than halved.
As of August, the retailer had more than 860 stores in the US, down from 1,700 at the end of 2014.
Sears Canada, which was spun-off from the main company in 2012, filed for bankruptcy last year, with the loss of thousands of jobs.- https://www.bbc.com/news/business- 45859722

 

 

Send us the links

We renew our invitation to send us links to websites, Facebook pages and the like which readers feel are of interest to others. These websites are from our database:
Africa Soul Footwear Manufacturers - Pinetown, SA: http://www.africasoulfootwear.com/ African Boot Company Ltd - Nairobi, Kenya: https://www.facebook.com/AfricanBoot/

 

They Said It

"Sandra Boshoff. Nog altyd. Gasvrou, guide and driver and owner." - Rakwena Crocodile Farm's Sandra Boshoff, updating the entry for our directory. Yes, I think most people in business at the moment feel they're doing too many jobs.

 

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
04/08/2018 R15.40 R17.31 R13.31 R1.94
11/08/2018 R16.11 R18.02 R14.11 R2.06
18/08/2018 R16.75 R18.67 R14.64 R2.13
25/08/2018 R16.56 R18.29 R14.23 R2.09
01/09/2018 R17.09 R19.07 R14.72 R2.15
08/09/2018 R17.64 R19.71 R15.26 R2.23
15/09/2018 R17.37 R19.54 R14.94 R2.17
22/09/2018 R16.82 R18.72 R14.33 R2.08
29/09/2018 R16.46 R18.47 R14.17 R2.06
06/10/2018 R17.06 R19.43 R14.80 R2.15
13/10/2018 R16.81 R19.12 R14.53 R2.10
18/10/2018 R16.64 R18.87 R14.43 R2.08

 

 

 

22/10/1965: Raymond Philander, Nulaw, George.
22/10/1974: Sulaiman Miller, Powerland Group SA Trading, Johannesburg.
22/10/1979: Kevin Govender, Evolution Engineering, Chatsworth.
23/10/1949: Alf Bettoni, ?.
24/10/1956: John Bouwer, Eddels, Pietermaritzburg.
24/10/????: Prenisha Dukhipersad, SAFLEC, Durban.
25/10/1969: Leon Buhr, Equator Accessories, Pinetown.
25/10/1966: Michael Schiller, Nakara Leather Tanning & Processing, Windhoek, Namibia.
25/10/1972: Venothan Munsami, Little Slipper Co, Port Elizabeth.
25/10/????: Chrystal Erasmus, Imaani, Cape Town.
26/10/1941: Rob Morris, retired, formerly BU Technical [closed], Cape Town.
26/10/1959: Hennie van Zyl, Ostriland, Citrusdal.
26/10/1962: MH Klopper, Bethlehem Hides & Skin, Bethlehem.
26/10/1976: Santosh Baboolall, Zwartkop.
26/10/1971: Ayoob Seedat, Shoe Tech, Springs.
27/10/1949: Rolf Stumpfe, Lederwerkstatt, George.
27/10/1950: Beverly Phillips, retired, formerly Bata SA / Futura Footwear, Pinetown.
27/10/1954: AM Samaai, Just Bargains.
27/10/1965: Selvan Naicker, Ethekwini Leather, Durban.
28/10/1970: Sannet Gerber, Zoom In Shoe Boutique, Jeffry’s Bay.

 

In Memoriam this week

24/10/1999: Norma Varley, Edcon, Durban.
24/10/1995: Wally Zwart, Dick Whittington, Pietermaritzburg.
25/10/2000: CIR Rex Van Coller, (b. 12/04/1925), agent, Durban.
25/10/2005: Braam Keyser (b. 05/09/1957), Feltex Automotive Leathers [closed], Ladysmith.
26/10/2015: Richard Reddiar (b. 29/03/1943), Premier Safety Footwear, Johannesburg.
27/10/1994: Brian Vincer (Futura).

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 12/10: Hides & skins prices

Whilst the better grades find a place in the market; the lower grade materials have not yet found a price point. Overall, the hide market sentiment remains bearish, in line with the weak international hide market. The average hide price over the past week was R5.00/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 R30.56, and for Merino skins was R95.00.

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
06/07 7.04 32.14 86.67
27/07 5.85 40.56 96.83
10/08 5.32 34.44 87.10
23/08 5.34 36.00 91.00
07/09 4.61 35.45 95.18
14/09 4.65 30.00 99.36

 

Upcoming Trade Fairs

The SLTC 2019 Conference will be held on April 27 at the Park Inn, Northampton. See our website for details.

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 skills on offer in W Cape

I have recently relocated to the Western Cape and am seeking employment in the retail/wholesale industry as a sales representative. I have more than 20 years sales and marketing experience in various international  footwear brands.
As a trusted advisor to my clients, I was well respected within the industry and had the ability to guide them to making well informed decisions, based on my extensive experience in the retail and sales and marketing arena. My in-depth knowledge of numerous well-known brands, is invaluable and ensures consistent client satisfaction and service delivery.
  I have also gained some valuable financial experience in setting targets and managing budgets to meet required outputs within stipulated time frames. - Gerrit Sander, 082 821 6769, gerrit.sander6@gmail.com.




Position sought

Devrajah 'Teddy' Moodley, former pattern room manager at Froggie and with 31 years experience, seeks a position in footwear manufacturing. He has a vast knowledge in the shoe Industry. - 083 280 6915, moodleyteddy8@gmail.com




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: October 29, 2018.

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

 

 

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