S&V Weekly Newsletter Vol. 4 No. 47, Nov 26, 2018

This Newsletter is sponsored by SAFLIA

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

Black Friday

Consumers keen, retailers cautious

Kim Cunniffe, group purchasing manager, Kingsmead Shoes, Durban: I'm very happy. 3 stores haven't reported because of a glitch, but if they do what I expect, we'll be up on last year, and it didn't even fall on or just after pay day, which it did last year.
       I know many people say Black Friday takes the edge off of Christmas, but we didn't find that last year.
       I think it gives a vibe, and added excitement. It adds an extra good retailing day to the calendar, along with Christmas, Easter and the new year sales.
       I know margins aren't great, but if you do it sensibly, it also rubs off on the rest of your stock that isn't marked down.

Graham Weber, member, Edelstein Distributors t/a Bryant's and Woza Stores, East London: We haven't analysed the outcome in great detail. We marketed Black Friday for both of the businesses, and I'd say for one I'm pleased, for the other, I'm neutral, sort of bitter-sweet.
       The customers were on the hunt for bargains, but they're aware that some retailers use it as a means of getting rid of dead stock.
       From the retailer's perspective, it makes no sense to sell product with no margin, to be a money changer, so you have to offer good value and still have some margin.
       In summary, yes, we'll do it again.

Martin Cohen, proprietor, L Cohen Outfitters, Cape Town: I didn't have signs up in the window announcing Black Friday bargains, but customers came in expecting bargains - in fact, their expectations were very high.
       I had some lines on offer - merchandise I'd bought excess stock of at good prices, though many people expect everything to be half price.
       Overall, there was a steady flow of customers all day, and by comparison with last year, Friday was better but Saturday was quieter - you could say a Black Friday but a Grey Saturday!

Abdul Rehman Dajee, member, City Outfitters cc, Johannesburg: It was the first time we had Black Friday promotions, and it was above my expectations. We had a rush, but there was no violence, which there was for some retailers, with people being trampled and so on.
       We had a fair amount of bargains on offer, and when people wanted discounts on other merchandise, we gave them discounts.
       We'll do it again.


David Fox, footwear buyer, Good Hope Sales t/a Choice Clothing and Big Daddy: I didn't do Black Friday. I feel my shoes sell themselves.

David Allan, group retail manager, Billabong SA, Jeffrey's Bay (interviewed on Friday afternoon): We haven't advertised Black Friday, but we have some seasonal product on sale. Last year we offered extra discounts for to regular customers. It's a Catch 22 situation for retailers.

Leather 'declining as upper material'

Durban (SA) – Garth Ribbink of upper material supplier A Greenaways (Natal) says leather is in retreat as a footwear upper material because of fashion trends, and cites the opinion of his agent in India, Deepak Nigam, who wrote:
       "Leather is dying a slow death here too. We have all the products in great quality, design and very attractive prices in synthetics and textile. People prefer fashion & price over durability and tend to buy more of these substitutes, use & throw and buy again. My business has gone down further (sent 1 shipment to South Africa this week) and is becoming more difficult."
       Ribbink added: "With sneakers being the 'now' fashion here too, leather is not the main material in this field. It's knitted uppers and fashion materials."

Mango opens in Kenya

Mango has opened its first store in Kenya, at the Westgate Shopping Centre in Nairobi, bringing the number of Mango stores in Africa to 64. - https://www.uqalo.com/

New head for SARS footwear task team

Pretoria (SA) – Helena Tripmaker, senior manager key industry engagement at SA Revenue Services (SARS), and chair of the SARS footwear task team, will be retiring at the end of the year. Her successor will be Dr Theo Colesky.

Death notices

Rosa Costa, formerly of the Superior Footwear Group in Harare, Zimbabwe, died in Portugal on November 18.
       José Leite of Southern African Polymers & Compounds (SAPCO), a relative, wrote: "Sadly, this morning Africa lost another of its valiant servants of the footwear Industry. Rosa Costa,  passed away this morning,  after being ill for a few weeks. She had relocated to Portugal about 10 years ago."

Durban (SA) – Michael Hiss, of Michael Hiss Agencies and Chanti Belt & Buckle Manufacturers, died last Monday night of a heart attack.
       Brendan Thomas of Techmelt & Polymers SA wrote:
       "Francois Michael Hiss, 70, of Durban North, sadly passed away on 19 November 2018, with his family by his side. He was born on the 03 October 1948 in Durban and is survived by his wife, daughter, 2 grandchildren and son-in-law.

       "He began his career as regional sales manager and progressed towards running several of his own successful businesses. He featured prominently in the clothing and textile sector where he was considered a pioneer until his untimely passing. He acted as mentor to many upcoming artisans and engineers in his field who also went on to become successful in their own right. He loved his family dearly, always put them first and has left a major chasm in their lives. Michael was like a father to me. He will be missed tremendously."

2019 Trade Fairs Another essential service from S&V

Please note that we have put a list of the 2019 trade fairs and conferences on our website, linked to their websites: http://www.svmag.co.za/events

They Said It

"I started at Bata Tannery on the 15th of July, 1963 - 53 years ago - and the whole of my first day was spent stirring the contents of a 44 gallon drum. I think the foreman didn't want me to come back, but I thought 'bugger you', and I've been coming back to work every day since." - Noel Barkhuizen of Rotta Leathers, Uitenhage.

"Production Capacity: 20 pairs per day. All processes are done by hand, no big machinery used (still saving up for these)." - Conrad Kalp of bespoke footwear manufacturer Shoe Boys, in Pretoria.

Exchange rates

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

26/11/19??: Ed Duthie, retired, formerly Bata Zimbabwe.
26/11/1967: Preggie Govender, Dynamic Engineering, Durban.
26/11/1974: Salman Jonas, Fred Footwear, Port Elizabeth.
27/11/1965: Gerda Rappard, Bolton Footwear, Great Brak River.
27/11/1975: Dione Govender, Paragon Footwear, Pietermaritzburg.
27/11/1977: Paul Diedricks, agent, Cape Town.
28/11/1940: Raphael Capelouto, retired, formerly Brazilian Sandal Co., and others, Cape Town.
28/11/1955: Tony Ford, left the industry, formerly Naturfit, Durban.
28/11/1960: Baba Sourimuthu, Robach Components, Pinetown.
29/11/1943: Nigel Ratcliffe, retired, formerly Boehme Africa and TST Agencies, Ballito.
29/11/1951: André Lubbe, retired, formerly AP Lubbe & Son, Stellenbosch.
29/11/1965: Maria Mintoor, All Leather Shoe Manufacturers, Maitland.
30/11/1933: Ahmed Simjee, Hopewell, Durban.
30/11/1971: Mantsebo Motsoanakaba-Phakoana, Fashion Parlour, Ladybrand.
01/12/1946: Rob Cattell, Cattell’s Industrial Footwear, Springs.
01/12/1948: Ken Gordon, retired, formerly Turbek Trading, Hermanus.
01/12/1950: Aboobaker Gangat, May’s Factory Shop, Port Shepstone.
01/12/1959: Arthur Lewis, AGB Sourcing & Consulting, Pinetown.
01/12/1966: Grant N Munro, Freestyle Handmade Originals, Cape Town.
02/12/1949: Stephen Chetty, retired, formerly NFLC, Vanderbijlpark, and Edcon, Johannesburg.
02/12/1971: Happy Shongwe, Happy Boutique, Mbabane, Swaziland.
02/12/1974: Stuart Galbraith, Milspeed Marketing, China.

In Memoriam this week

29/11/2001: Harold Sack (b. 14/09/1932), Nugshoe [closed], Pinetown.
30/11/2017: Dimitar Todorov (b. 08/11/1947), Afromerino Produce (now African Merino Trading) and Tannery Industries Botswana (closed).
01/12/1998: Gian-Carlo Rosa (‘John’) Donati, Nupro Shoes [closed], Pinetown.
02/12/1996: Pieter Du Plooy, Bata Zimbabwe, Bata SA.
02/12/2008: Tony Laycock (b. 26/01/1951), Mario Levi Manufacturing [closed], Uitenhage.

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.

Send us the links

We invite other businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:

Afro Leather, a manufacturer of corporate leather goods: http://www.afroleather.co.za/

Afro-Thai Imports, an importer of comfort footwear: http://aerosoft.co.za/

ABSA Agri Trends 23/11: Hides & skins prices

The average hide price over the past week was R4.15/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. On October 10, the average price for Dorper skins was R30.78, and for Merino skins was R91.28.

ABSA comment: In general the hide market remains under pressure and has followed a downward trend over the past months. There are risks of further decreases in the next few weeks. The market for the middle/low grades is under severe pressure. The situation remains negative; unlike the crises in 2008 which was related to the global financial situation; this market situation is a result of the fundamentals behind leather – prices and consumer choices have led to the situation of supply exceeding demand. The orders for leather (shoe, automotive and upholstery) are all down on previous seasons coupled with high slaughter figures in the US, Brazil and Australia. Overall, the hide market sentiment is bearish, in line with the weak international hide market.

Classified Adverts

Shops for sale, Mpumalanga

Profitable footwear and clothing retailer (2 stores) for sale in Mpumalanga town.  No goodwill.  Pay only for stock, fixtures and equipment  +/-2.5m.  Property available for 250k.

Serious buyers can call 065 925 0359.

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: December 3, 2018.

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