Cape Town, W. Cape, SA – The rating agency Moody's Investors Service has concluded an update on Pepkor Holdings Ltd's credit analysis. Moody's has affirmed Pepkor's Corporate Family Rating of Ba2 and National Scale Long Term Rating of Aa1.za with a stable outlook. Moody's highlights Pepkor's stable operating performance with demonstrated resilience to economic shocks, positive organic growth, conservative financial policies and robust credit metrics as key factors reflected in the rating. 

Zubeda Khan, Classique Shoes
Scottburgh, KZN, SA – December has been very quiet, and it’s the first year that I have found it like this. We did have Black Friday specials, but there wasn’t much response – it was much like any other Friday trading.

I don’t know why trade is so poor at the moment. We’re not in the centre, but I hear the retailers there are also complaining.

We just have to hope it improves.

Cassim Dawjee, D-Style by Daks HQ
Harrismith, Free State, SA – Black Friday was decent. So far in December, trading conditions have been very difficult, but we’re hoping they hold up over the Festive Season. 

Johannesburg, Gauteng, SA – Ostrich has been stable this year, Nile crocodile has been more challenging. There is still a demand in Europe for the top ostrich grades and top crocodile grades.

However, the demand for crocodile in Europe has slowed down. This comes after a couple of years of high demand for Himalayan niloticus croc leather – a tanning process where the skin is not bleached, leaving the natural pigment colours to contrast against the white bellies. It was hugely popular, but now everyone is offering it, so demand has slackened. Current demand is more about normalising the curve than a drop in demand, but it feels like hitting a wall. The major brands in Europe, with the exception of very few, have seen their share prices plummet after the last few months of poor trading.

Asian demand follows Europe, but the correction isn’t as marked there yet, however we will see what the demand is after the Chinese New Year.

Quality is always an issue in Europe. American alligator skins are the main competition, and South African farmers need constantly to improve their standards. An issue at the moment in South Africa is ‘double scale’, which is a condition caused by external factors, not a genetic condition. A major cause is stress. Other contributing factors are temperature extremes and erratic feeding practices.

Overall, business is always challenging, but essentially satisfactory.

Johannesburg, Gauteng, SA – As part of its fundraising initiatives, the Childhood Cancer Foundation SA organises an annual Flip Flop Day, on which people are asked to buy a sticker for R10 and wear flip flops for the day – including to work.

Flip Flop Day next year is on Friday, 14 February – also Valentine’s Day, if you need reminding.

It should offer flip flop manufacturers and brands a marketing and a charity opportunity. For further details, see https://choc.org.za/

Any businesses which follow up on this, please let me know. 

Cape Town, W. Cape, SA – Truworths responded to our questions about trading as follows:

How successful was Black Friday for the group? – We are unable to comment on Black Friday trading as we have not provided an update to the market.

How confident is the group about Festive Season sales? – The reality is no one knows how festive trade will be this year. That said, we always plan our merchandise according to optimistic sales plans to ensure that we are positioned for sales demand.