S&V Weekly Newsletter Vol.3 No.44, November 6, 2017
This Newsletter is sponsored by SAFLIA
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TFG: 6-month results 'satisfactory in difficult circumstances'
Cape Town (SA) – The Foschini Group (TFG) grew turnover to a record R12.5 billion for the 6 months to September 30, according to results released last Thursday.
Total group retail turnover was 9.2% up, with 5% growth in TFG Africa and 4.1% in TFG London, with the balance coming from TFG Australia. Comparable store turnover growth of 1,0% was achieved in TFG Africa.
The previously named International division, comprising of the Phase Eight and Whistles brands, has been renamed to the TFG London division, and there will also be a TFG Australia reporting division. Together, they will form a new international division.
"The Group performed satisfactorily against a backdrop of difficult political and economic conditions in both South Africa and the United Kingdom, two of the three major economies in which we trade, and against a strong base in the corresponding period," the report said.
"Group cash turnover grew by 11,1% for the period with growth of 3,8% (ZAR) in TFG Africa and 4,1% (GBP) in TFG London with the balance coming from TFG Australia. The low cash turnover growth in TFG Africa was due to the challenging trading environment as well as the high base of 19,0% growth achieved in the corresponding prior period. Turnover growth in TFG London was driven by online channels, which now accounts for 28,3% of their total turnover, as consumers shop less in high streets in favour of e-commerce channels. Total cash turnover now contributes 62,5% to total Group turnover (Sept 2016: 61,4%).
"Group credit turnover growth at 6,2% was stronger than the growth in the corresponding period of 1,4%. This was in line with expectation, as the negative impact of the Affordability Regulations is now in the base.
"Group gross margin for the period improved to 51,0% from 49,6% at September 2016. In TFG Africa, gross margin improved across all merchandise categories with the exception of cosmetics. Total gross margin for TFG Africa was 46,7% compared to 45,5% at September 2016. TFG London’s gross margin was 63,6% (Sept 2016: 63,9%)."
U.S. looking to up exports to Africa
Washington (DC) – The United States is investigating 7 sub-Saharan African (SSA) countries with a view to increasing U.S. exports, according to a letter dated October 16 from the United States Trade Representative in the White House to the U.S. International Trade Commission. The letter asks the ITC to "provide profiles of the markets in Cameroon, Cote d'Ivoire, Ethiopia, Kenya, Mauritius, Nigeria, and South Africa that include information on macroeconomic indicators, goods and services trade, and FDI flows in those countries".
Breakfast seminars alongside ATF – China Premium Tex trade exhibition this month
Cape Town (SA) – The ATF Trade Exhibition & China Premium Tex will take place from 21 – 23 November in Hall 4A, CTICC, Cape Town and will offer key industry decision makers from chain stores, independent retailers, mini-chains, boutiques, importers, distributors, factory managers, etc. the opportunity to meet with 140 international manufacturers and suppliers from 10 countries. Register online @ www.atfexpo.co.za or call 021 790 5849 for more info. No entry fee but open to trade only.
Wednesday, 22 Nov – 9.30am-10.15am - Topic: The Future of Business & Retail
Speaker: Dave Nemeth, Owner, Trend Forward
A leading international company recently identified Dave as one of the top creative influencers in the country. Brief Overview: The only certainty in business today is the death of business as we know it. This presentation, which is based on a year’s research will look at the disruptions which businesses and specifically retail are currently facing. It will cover areas such as – macro trends affecting business and retail, current consumer attitudes, technology and retail space, the future of retail, the changing face of corporate culture, the changing face of company structure.
Thursday, 23 Nov – 9.30am-10.15am - Topic: The changing Apparel Retail Landscape in SA
Speaker: Brett Kaplan, Independent Retail Consultant, Choppies Superstores
Brett was the Managing Director Clothing and General Merchandise at Woolworths for 37 years. He was instrumental in building the clothing and general merchandise business into the success that it is today.
Brief Overview: The globalisation of retail is a reality with both northern and southern hemisphere taking full advantage of the ‘untapped African opportunity’ with SA at the centre of this development. What many retailers learn about SA is that a ‘cut and paste’ approach does not always deliver results as SA consumers have a specific fashion appreciation which is unlike other regions including Australia albeit a southern hemisphere lifestyle. The entrance of international retailers such as H & M and Cotton On with significant footprints in prime locations have changed the competitive landscape forever and local retail need to think and act differently to meet this change and win.
They Said It
"Drink lots of good wine?" - Kasodur director Alan Richards in response to a question for our business barometer. We asked: What are you or can you do about trading conditions?
"Oops!! But he does have us at a disadvantage. Is he not The Batman? Complete with super senses 'n all?" - S&V webmaster Jonathan Commons, responding to Rolfes Leather MD Quintin Marais finding an error in the newsletter.
November 21-23: ATF Trade Exhibition, Cape Town International Convention Centre. Deidre Harte, +27 (0)21 790 5849, email@example.com
Birthdays this week
06/11/1950: Idris Kajee, Favourite Sports, Newcastle.
In Memoriam this week
07/11/2004: Ralph Mossop (b. 04/12/1913), Mossop & Son (now Mossop Western Leathers), Cape Town.
Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.
ABSA Agri Trends 2/11: Hides & skins prices
The average hide price over the past week was 0.6% higher at R12.19/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies.
Trade Fair dates
For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php
In need of a Boardroom/Meeting room? SAFLEC is situated in Westville and has a boardroom seating 12 people (with space to add chairs within the room), than can be hired out to interested parties.
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, firstname.lastname@example.org
Next newsletter: November 13, 2017.