Silver lining tinged with grey?
Trading Conditions / Middle East war
Durban, KZN, SA – “There are multiple possible reasons why it’s been a very quiet April,” Nasron Footwear Manufacturers member Rodney Naidoo said last week, “but from a sales and turnover point of view, it’s been dreadful – and that’s from someone who’s normally positive.”
He expects this month to be “significantly better”, starting with all 5-day weeks.
Privately owned chains are the backbone of Nasron’s business. “Talking to three of them, one is positive – very positive – about a specific product and line, while the others are talking about pushing out deliveries. So, a silver lining, but by no means a flood of orders.”
He said other, smaller retailers had become “extremely difficult to manage”.
“We have a broad spectrum of customers, but in absolute numbers, it’s shrinking. The old legacy of an industry of honourable businessmen is gone. There are a couple of gems, but literally, a couple. For too many, 30/60-day payment terms become 60/90, and then 120, while we’re exhausting every avenue to pay OUR suppliers on 30 days. The chains are safer business.”
He said the Middle East war was “definitely affecting raw material prices”, especially for soling materials – PU, PVC, and TPR – but there were also other, sometimes unexpected increases, “like our local courier charges, which have gone up 20% in a week because of the price of diesel”.
