Back-to-school wrap 2023: A huge improvement, though there are issues with cash flow and manufacturing capacity
Michael Wyatt, Country Manager, Bata South Africa
Pinetown, KZN, SA - Overall Back To School was extremely successful from a manufacturing, distribution, and retail perspective. We saw double-digit growth vs. plans, and a strong January top-up demand despite 2022’s inflationary pressure on raw material costs and gross margin. The majority of retailers will only provide full Back To School feedback come to the end of January, but from those we have aligned with already, the report is that sell-out has been great in both Bata leather and synthetic collections.
Rajeev Pattundeen, MD, Palm Footwear
Durban, KZN, SA - Back to school was very good.
We are again tracking 2019 volumes.
Margins are under pressure; we remain grateful to our partners who continue to demonstrate confidence in us as a business.
It was a very tough year and we are still recovering from the floods of April 2022. Our family at the plant worked through the devastation and again have proven their mettle in dealing with disaster which we have become accustomed to in KZN.
Their dedication cannot slip by unnoticed.
Thankfully, we planned well; the requisite inventory levels were maintained throughout back-to-school, enabling us to service our retailers to their expectations and beyond. Cash flow is reality, our customers have not let us down. We envisage a challenging year; our team will show up, that’s for sure.
Idris Pandor, director, Gem Schoolwear
Sales have definitely been much better than the last 2 years.
Issues with supply? Shoe manufacturers and wholesalers have run out of a size or two.
Bag manufacturers ...very few reliable ones, and trying to get stock out of them is a challenge. They either have capacity issues or are underfunded businesses, together with poor planning. It's really stressing us out.
Trying to get stock of a PDR tracksuit is also challenging... it goes back to sourcing of yarn, capacity, buying generators and lastly labour.
We stock the following school shoe brands: Bata, Step on Step, Green Cross, Froggie, Elefante, Grasshopper, Buccaneers, some Tuff Beat and Hush Puppies ... most have moved on to synthetics.
Payments? Keeping a tight ship helps steer us financially. Take your eye of the ball and you could be collecting up to June and at times beyond!!!