S&V Weekly Newsletter Vol.4 No.35, September 3, 2018

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

Mr Price Group: Miladys, online best peformers

Durban (SA) – Miladys had the highest retail sales growth - over 9% - of Mr Price Group Limited's 3 apparel and 2 home segment store divisions, according to results released on August 30 for the first 4 months of the financial year ending on March 30, 2019.
       Online sales growth was higher still, standing at nearly 38% for Mr Price Apparel, although online sales are smaller than store sales. Excluding home segment figures, the report read:
TRADING UPDATE TO 25 August 2018
During the first four months (18 weeks to 4 August 2018) of the financial year ending 30 March 2019, the group recorded growth in retail sales and other income of 7.4% to R7.4bn over the corresponding period in the prior year. Total retail sales, including sales to franchisees, of R6.9bn were 6.5% higher than the corresponding period, while growths in corporate owned stores were as follows:

Online sales continued to grow strongly by 28.1% to R83.2m. The MRP Apparel online channel achieved sales growth of 37.6% MRP Home 19.5% and MRP Sport 31.3%.
       South African sales increased 6.4% to R6.4bn, exceeding the combined sales growth of 3.5% for Type D and Type E Retailers as reported by Stats SA for April to June, the period for which market information is available.
       Sales in non-South African corporate owned stores grew 9.1% to R520.8m, aided by the inclusion of the previously franchised Kenyan stores from late May 2018. Excluding Kenya, corporate owned store growth was 1.8%. Sales to franchisees decreased 30.9%, however after excluding Kenya in both periods, sales were up 11.6%.
       Group cash sales increased 7.0%, constituting 82.9% (LY: 82.6%) of total sales and credit sales reflected growth of 4.1%. New store openings and expansions resulted in weighted average trading space increasing 3.1%, while after store closures and reductions, net weighted average trading space was up 1.8%. Retail selling price inflation, including the impact of product mix changes and lower markdowns, was 4.2%.
       Other income grew by 23.5%, to R459.4m. Debtors’ interest and fees grew 6.9% to R160.1m and Insurance revenue of R85.5m increased 6.9%. Cellular and Mobile revenue increased 56.7% to R196.5m mainly as a result of the ongoing rollout of in-store cellular kiosks. Other sundry income increased 2.8% to R17.3m. Total retail sales for the three-week period from 5 to 25 August 2018, not included in the analysis above, were up 7.4%. The retail environment is expected to remain highly competitive until more robust economic growth is attained in South Africa. In addition, international trade wars have weighed down on emerging markets. Navigating the impact on consumers of a stagnant economy and a weak ZAR/USD exchange rate is a top priority and we are confident that our fashion, everyday low price business model is well positioned to offer great value to consumers under these constrained conditions.
       The above-mentioned figures do not constitute an earnings forecast and have not been reviewed and reported on by the company's external auditors. Durban 30 August 2018 - Source

Movements

Cape Town, SA - Jeannine De Chaud has been appointed head of TFG Merchandise Procurement.

Durban, SA - Kate Dreyer, former merchandise planning executive at Mr Price Sport, has joined Decofurn.

Maseru, Lesotho - Eleugene Human has replaced Roger Metelerkamp as factory manager at Adient Lesotho.

Maputsoe, Lesotho - Martin Mpemi has been appointed GM of Jaguar Shoes following the retirement of John Lyon.

Johannesburg, SA - Peter and Mary Thumbran closed Catwalk Shoes earlier this year.

They Said It

"As you know, SABS/ NRCS has been an ongoing saga for our industry. You are also aware of the initiatives to establish an alternative testing facility locally. Pursuant to a letter circulated by the new executive management team of the SABS, I last week had a visit from Johan Louw, Executive- Laboratory Services. Personally I am bullish about the intentions of the new team to restore the service. We as a group will always support local and will want to help SABS restore if there is real prospect that it will do so." - Alan Fleetwood, MD Bolton Footwear/BBF Safety Group. We expect to carry an interview with SABS in the next issue of S&V Footwear & Leather Goods Magazine.

Exchange rates

Source: http://www.x-rates.com/calculator/

03/09/1953: Vic Jablowski, Protech V, Pinetown.
03/09/1970: Michel Hasson, Topaz, Cape Town.
04/09/1952: Julian Pledger, left the industry, formerly Faith Footwear [closed], Port Elizabeth.
04/09/1955: David Scott, exporter, Pinetown.
04/09/1963: Peter Crouch, Crouch Footwear, Pietermaritzburg.
04/09/1992: Sarah Hayze-Hill, Chillisource, Durban.
05/09/1954: Abdul Samad, Bob’s Shoe Centre, Johannesburg.
05/09/1989: Erlank van Zyl, Ostriland, Citrusdal.
06/09/1957: Yusuf Bhabha, Shoe Boutique, Secunda.
06/09/1953: Tony Stottelaar, Leather Systems SA, Port Elizabeth.
07/09/1981: Mohamed A Lalla, Tysons Shoe & Clothing, Vereeniging.
07/09/1972: Karl Flowers, Authenticae, Northampton.
08/09/1954: Denis Tuchten, formerly Shoe Connection, Cape Town.
08/09/1960: Paulo da Silva, emigrated, formerly Bambi Shoes [closed], Durban.
08/09/1970: Kevin Naidu, Shenlea Agencies, Durban.
09/09/1929: Bill Hoffman Erlings, Johannesburg.
09/09/1943: Simon Liu, emigrated, formerly MCA Marketing [out of footwear], Midrand.
09/09/1952: Abisha Tembo, the DTI, Pretoria.
09/09/1953: Fernando Santos, Barker Footwear, Cape Town.

In Memoriam this week

03/09/2005: Oliver Guibert (b. 23/12/?), Bata Zimbabwe.
04/09/2012: Judi Moakes (b. 13/04/1960), in Northampton, formerly secretary, SLTC (SA Section).
08/09/2017: Roger Benjamin (b. 17/08/1945), agent, Port Elizabeth.
09/09/2000: Erik Peter Rormose (b. 11/03/1934), Bulley’s Tannery/Coja Tannery/Silverton Tannery/KwaNdebele Tanning/Kembe Estates.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

ABSA Agri Trends 23/08: Hides & skins prices

The average hide price over the past week was R5.34/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. The average price for Dorper skins was R36.00, and for Merino skins was R91.00.

Upcoming Trade Fairs

MOMAD Shoes 2018, Spain, September 7-9
Madrid (Spain) – Madrid, Spain - The new collections for the 2019 spring/summer season and a selection for the 2018-2019 fall/winter season will be the stars of MOMAD Shoes, the International Footwear and Accessories Trade Salon organised by IFEMA.
       Brands will include Vidorreta, Exé, Pons Quintana, Sixty Seven, Chie Mihara, Som.mits, United Nude, Angari, Chika10, Coolway, Cosdam, Alma en Pena, Calzados Marian, Sneaker Business, Mibo and Suelas de Yute are some of the made-in-Spain brands that will participate in this year’s edition.
       The fair is held alongside MOMAD Metropolis, showing upcoming trends for the 2019 spring/summer season and prêt-a-porter fashion for the 2018-2019 fall/winter season and which will host approximately 900 brands.

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

Classified Adverts

In need of a boardroom?

SAFLEC, situated at 6 Stedman Mews, 128 Jan Hofmeyr Road, Westville, has a boardroom for hire.
       It seats up to 12 people around a table, and has space to add up to 15 more chairs in the room. You are welcome to view the room before hiring.
       For more information, please contact Louise on 031 266 1473 or louise@saflec.co.za.
We look forward to being of service.

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: September 10, 2018.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za