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South African & East African Footwear and Leather Goods, Leather and PPE industry news.

Black Friday 2022: Mixed response

Published: 28th Nov 2022
Author: Tony Dickson - S&V Editor

We asked 35 retailers - mostly privately owned chains and mini-chains - across SA, Namibia, Botswana, Lesotho, Eswatini and Zimbabwe - for a 1-sentence comment on Black Friday. Just 10 responded, 1 whose response is under They Said It, 1 to promise a response later today, 1 to say 'no comment', and another to say he didn't offer it.

"With general sentiment and trading conditions as tough as we have ever seen it, we were happy to see that our brands were well supported and that our campaigns yielded solid results. The proof of any sustainable uptick is however going to be in a good summer season and with a number of structural challenges nationally, most notably load shedding, it is best to be prudent at the moment." - Bernard Mostert, Mr Tekkie, George, W. Cape, SA

"I am over Black Friday, softens sales in the lead up to this weekend and has an impact on December sales. If we are going to keep it,  should be ONE DAY ONLY." - Kim Cunniffe, Kingsmead Shoes, Durban, KZN, SA

"Regarding Black Friday, it was OK but not like 2019.' - Sandeep Gandhi, Vision Sports, Gaborone, Botswana

"Queue Black Friday promotion runs from the Thursday to the Sunday, and we achieved an increase of 8% on last year. The sales pattern differed this year as the 25th fell on the Friday, whereas last year it was on the Thursday. Thursday dropped on last year, but Friday and Saturday were well up,  with Sunday showing the highest  growth." - Steve Miller, Queue Shoes, Cape Town, W. Cape, SA

"Black Friday was very good for Jumbo. I believe we were very well prepared. We have also opened 12 new stores this year and are achieving exciting success.” - Alan Scheckter, Jumbo Clothing, East London, E. Cape, SA

"Overall Durban Central was disappointing. Musgrave Centre, where we retail European garments, traded fairly well." - Sanjay Bhagwandas, Ginger Bhagwandas Exclusive, Durban, KZN, SA 

Competition Commission approves Karan takeover of Triple A group

Published: 28th Nov 2022

Pretoria, Gauteng, SA – Subject to a package of public interest conditions, the Competition Tribunal has approved the proposed merger whereby Karan Beef Feedlot and Karan Beef (Pty) Ltd intend to acquire the businesses of SK Caine Farming, Caine Farming (Pty) Ltd and Triple A Meat (Pty) Ltd.
      The conditions imposed on the transaction seek to support cattle farmers classified as historically disadvantaged persons (HDPs). The conditions also include supplier, enterprise and socio-economic development commitments.
      Karan Beef Feedlot is involved in crop farming, silage production and the backgrounding and feeding of cattle (feedlotting) to produce slaughter cattle. Karan Beef’s activities relate to the slaughter of cattle produced at the feedlot; deboning beef carcasses; packaging primal cuts; and the wholesale and retail of beef carcasses and deboned/primalised cuts of beef.
      The target firms are active in crop farming to produce feed for the cattle in their feedlot. They produce cattle for slaughter; slaughter all cattle produced in their feedlot at their abattoir; and supply beef carcasses and deboned/primalised beef cuts to wholesalers and retailers.

Black Friday: You might as well make the most of it, because other retailers will

Published: 21st Nov 2022
Author: Tony Dickson - S&V Editor

Cape Town, W. Cape, SA - It's Black Friday on Friday. This American concept only arrived in SA in 2014, and has been viewed with mixed feelings by local retailers. We asked Michael Lawrence, executive director of the National Clothing Retail Federation, how enthusiastic his chain members were about Black Friday, and whether it had a negative effect on December trading.


      "Retail always approaches BF with optimism and confidence," he replied. "Clothing retail sees it as an opportunity to clear some stock, introduce new ranges, give consumers confidence in offerings [which] can extend further into the festive trading period. The impact on December trading is varied because many people only get paid end of year bonuses in December....


      "BF offers great deals for consumers who have smartly planned their spending...but even for the unready, smart use of credit or smart monitoring of offerings makes sense. Consumers can also see best opportunities for great retail benefits post BF."

Trading conditions: Better than last year, but nowhere near pre-Covid

Published: 21st Nov 2022
Author: Tony Dickson - S&V Editor

Johannesburg, Gauteng, SA – The foot count in the Oriental Plaza, Fordsburg, is up, which is an indicator of improved trading, said M.H. Abdulla, member of men's lifestyle outfitter Casual Affair.
      "It's not going to be like the old days, pre-Covid, but business is definitely up on last year," he said.
      The biggest single issue affecting trading is load shedding, but procurement hasn't been an issue.
      He said customers were more interested in value than labels, and Casual Affair's strategy has been to offer discounts on branded goods.

 

Pietermaritzburg, KZN, SA – Business "has picked up slightly", said Presheen Jankee, manager of Failsworth Road hawker trade specialist Leatherhaven, "but it's nowhere near what it was before Covid, and I don't think it will ever get back to that - there are so many unemployed people, and the cost of living keeps rising."
      What has improved, however, is that many hawkers are now ordering from WhatsApp catalogues sent out by Leatherhaven, which are delivered by courier. "That makes it a lot more affordable and much easier for them," he said.
      Most of Leatherhaven's hawker customers are from country areas in Mpumalanga, Limpopo and North West Province, and from rural KZN. "There used to be a lot from the Eastern Cape, but not anymore."
      Leatherhaven sells mostly unbranded, locally made footwear, and he said most demand was for low cost women's and children's shoes.

Carletonville, N.W. Province, SA – "Before Covid there was life," said Power Sports/Power Stores member Anees Nosarka. "Now it's about survival."
      The biggest problem, he said, is that consumers don't have much money. Power Sports/Power Stores has a very broad range to attract as wide an audience as possible, covering casual and formal family apparel, sportswear, workwear, schoolwear and swimwear.
      Among its current best sellers is the outdoor and hunting clothing brand, Sniper Africa.
      "We carry on doing what we've always done," he said. "We'll survive."

Johannesburg, Gauteng, SA – Trade is "nothing like it was pre-Covid", but it is about 15% up on last year so far, said Chris van den Berg, member of Burgers Brothers.
      Burgers specialises in school wear and corporate wear, and also supplies chef wear.
      "School wear has been hit harder than corporate wear," he said. "People are having to delve into their savings, and school wear is a bit of a grudge purchase.
      "It's clear most people are battling. Where previously someone would come in and buy 5 pairs of socks, now they buy 1."
      He said procurement was sometimes an issue. "Everything is blamed on Covid. It's hard to know whether it's an excuse or not."
      January is traditionally Burgers' busiest period. What is he expecting of this January? "I have absolutely no idea," he said.

Eddels: IDC in talks with possible buyer

Published: 14th Nov 2022
Author: Tony Dickson - S&V Editor

Pietermaritzburg, KZN, SA - There are ongoing negotiations between the shareholders of Celrose (Pty) Ltd and unidentified prospective buyers over the potential sale of Celrose subsidiary Eddels Shoes.
      As of early last week, no offer had been received from the prospective buyer or buyers. According to a source, it is hoped and expected that there will be an offer this week.
      The Industrial Development Corporation (IDC) is the biggest shareholder in Celrose, having taken over Edcon's shares before Edcon's closure.
      Tshepo Ramodibe, IDC Head of Corporate Affairs, responded to our request for comment on negotiations: "The challenges facing Eddels are well documented. As such, the IDC has been and continues to explore available options that can help improve Eddels’s operational efficiencies."

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