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Industry News

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

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."

Le Croc buys Lorenzi, creates vertical exotic leather business

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

Johannesburg, Gauteng, SA – Crocodile farm and tannery Le Croc has bought luxury leather goods manufacturer Lorenzi Exclusive Handbags for an undisclosed sum, effective from 01 August 2022.
      "Le Croc has always been interested in creating full vertical integration in the exotic leather value chain," said Le Croc MD Stefan van As. "Our operations now cover crocodile breeding and rearing, tanning, manufacturing, and retail of exotic leather products."
      A full article on the takeover and the plans for the business will appear in the November issue of S&V Footwear and Leather Goods, due out on 29 November.

Adhesive 'shortage' reaction

Published: 7th Nov 2022
Author: Tony Dickson - S&V Editor

Eric Marzoppi, managing member of Royal Adhesive Industries cc, complained about the article in last week's newsletter under the headline 'Adhesives - yes, there's a shortage, for some'.
      He wrote: "The information contained in the article is a poor portrayal of the adhesive market and we would like to request for it to be retracted, corrected and an apology / explanation on the correct facts to be sent on every platform whereby the original content was published.
      "Whilst the manufacturer in question has valid points and one cannot dispute the difficult trading conditions we all find ourselves in, to imply that there is an adhesive shortage is false and misleading. The article has given a false perception to adhesive stakeholders surrounding a non-existent 'adhesive shortage' and this false information has large potential to negatively impact the market, and thus adhesive suppliers, clients, and all stakeholders within the market. We would like for you to understand the potential gravity and trepidation articles such as the one referred above may have on the market, and the effects that these have on further adhesive suppliers."
      The background to the article is that a well-known component supplier, who often gives S&V information on news in the industry, sent me a message reading: "A customer  mentioned [an adhesive shortage] to me in Pmb and the next day a Jhb customer mentioned the same." When he gave me the information, he asked that his name not be used, and he didn't name his customers. Why they were having a problem procuring adhesives, I don't know.
      It appears clear that our assumption to a shortage of adhesives, has been misleading and false and if we instigated any panic or unnecessary concern it is regretted.

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