Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries

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S&V Weekly Newsletter Vol.5 No.29, July 22, 2019

This Newsletter is sponsored by SAFLIA

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

 

Retail last week

Comment from 5 retailers on Saturday
"Very tough. The month started okay - not great, but good compared to what we've had - but last week and especially this week it has been very quiet." - Nazir Laher, proprietor, Elite Same Day Shoe Repairs, Johannesburg, Gauteng. Independent, 1 store, repairer and men's footwear retailer.

"A bit quiet. The year started very slowly, but some of the months have been okay." - Desrae Doubell, sales, Elle Lifestyle Boutique, Port Elizabeth, E Cape. Independent, 3 stores, women's boutique.

"Not too bad. It's picked up a bit. The year so far hasn't been great - some months on par with last year, some a bit down. Last month was very poor." - Ash Nagar, proprietor, Esquires, Benoni, Gauteng, SA. Independent, 1 store, men's outfitter.

"Quiet but okay. It's the middle of the month, and parents don't have money. Come the end of the month it will pick up - that's the trend." - Muhammad Seedat, member, Essay's Fashions, Benoni, Gauteng, SA. Independent, 1 store, school wear specialist.

"The year generally has been down by comparison to last year, and this week was the same." - Asif Mahomed, member, Etem Fashions, Laudium, Gauteng, SA. Independent, 1 store, women's outfitter specialising in comfort footwear.

 

 

Footgear takeover by equity firm approved

Edcon deal will take it to close to 200 stores
Cape Town, W Cape, SA – A lot of things have come together for retailer Footgear in the last 2 months.
       On June 6, Old Mutual Private Equity (OMPE), the direct private equity investing arm of Old Mutual Alternative Investments, announced the acquisition of a majority interest in Footgear, subject to approval by the Competition Commission. On Friday, the commission recommended to the Competition Tribunal that the merger be approved unconditionally.
       On July 15, Footgear announced that it has acquired the Edgars Active and High Key chain stores from Edcon, subject to commission approval.
       CEO Neil Stephens replied to questions from S&V about the Edcon deal:

Does this still have to be approved by the Competition Commission? Yes – as per the press release – not sure of timing unfortunately – but hopeful for completion pre peak Nov/Dec season. We are confident especially from a job preservation perspective as there will be no job losses, and even as a combined entity we are a small percentage of the market.

Are the Edgars Active merchandise and brands similar to Footgear's merchandise and brands? There is good crossover of the brands – the likes of Nike, Adidas, Puma, and Converse, and we are looking forward to working with all our suppliers to develop these relationships further.

Are you taking over 180 stores or will your total now be 180 stores? The combined total will be approximately 180 - 200 stores.

Was this deal motivated by Old Mutual's role as a landlord? No, old Mutual is the landlord in only one location. As per the first press release the OM private equity (OMPE) investment was typical private equity – buying into a successful enterprise with high growth potential. The attraction to us was the OM brand and reputation, as well as their track record in previous private equity transactions (The Pro Shop, Cycle Lab, Tiger Wheel and Tyre, Pep, Ackermans, to mention a few), and of course the availability of capital to pursue our growth ambitions which included Edgars Active.

Do you feel you have taken over intrinsically sound businesses, or do you feel they will need a lot of work? The EA business is very similar to ours from a target market and brands perspective, and the stores are very well located, and a great geographical fit with our existing stores – 95% of their stores are in locations were we are not, thereby giving us an excellent nationwide reach, and they have good people. So we see it as a great opportunity. What is High Key? This comprises of about 8-10 stores within the EA stable recently rebranded “High Key” offering a very different look and feel to the existing EA brand, which we will assess and we could possibly roll out as a separate chain after we have bedded down the first phase.

 

 

Angelo Kater takeover approved

Pretoria, Gauteng, SA – The Competition Commission announced on Friday its approval of the takeover of Angelo Kater Motor Trimmers, which is involved in leather automotive upholstery among other activities.
       The statement read: PAPE Fund 3 en commandite Partnership (PAPE Fund 3) v Angelo Kater Motor Trimmers (Pty) Ltd (AKMT).
       The Commission has approved, the proposed merger, without conditions, whereby PAPE Fund 3 intends to acquire AKMT.
       PAPE Fund 3 controls several fund management entities which have interests in companies that provide the following services: logistics services; courier services; as well as freight forwarding and clearing services; contractual distribution and warehousing services.
       AKMT is involved in motor trimming and coach building. AKMT’s activities entail converting standard road vehicles for special applications such as ambulances, police and emergency services vehicles.
       The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any employment or public interest concerns.

 

 

FLIC offers free styling ideas to SA manufacturers

By Richard Starmer, FLIC
Pietermaritzburg, KZN, SA – The National Footwear & Leather Industries Cluster (FLIC) is up and running and open for business.
       FLIC has created a website which it intends updating on a regular basis. The website will provide the industry with updated news flashes on FLIC’s activities, amongst other things. Another section will be dedicated to providing the latest fashion trends as well as a library of current styling found in stores in Europe.
       A trip was undertaken during the latter part of June 2019 to the cities of Cologne, Dusseldorf, Amsterdam, Rotterdam and London.
       Styling ideas have been uploaded to the website broken down by city and gender. It is hoped that these styling ideas will become a valuable part of the individual factories research and development programmes.
       This is currently a free-to-view service being offered by FLIC for the benefit of the industry at large.
       While quite a few factories undertake their own research trips to Europe, there are a lot of factories that do not travel due to costs. These styling ideas will prove very useful to them.
       FLIC can assist the industry in turning relevant styling ideas into reality with their technical assistance and input. Companies can also lean on FLIC for further input and assistance in their range building plans and preparation.
FLIC commits itself to the non-disclosure of factories intellectual property and ideas.
       The FLIC website address is as follows www.flicsa.co.za

 

Changes

Intobrands/UGG
Cape Town, W Cape, SA – Intobrands, which has the agencies for Bedroom Athletics, Fitflop, Hunter Boots and Butterfly Twists, has acquired the agency for UGG from Deckers Outdoor Corporation. Intobrands MD Paul Hancock said the first shipment would arrive in time for Christmas trade.

Former DTI director joins Beier Group
Pinetown, KZN, SA – Abisha Tembo, former chief director textiles, clothing, leather & footwear at the DTI, has joined the Beier Group as group strategic business development manager. The group is a major shareholder in BBF Safety Group, and its other divisions include nonwovens manufacturer Beier Envirotec and synthetic upper materials manufacturer Neucoat.

Eros closes
Johannesburg, Gauteng, SA – Eros Shoes & Accessories, formerly in Fourways Mall, has closed.

 

They Said It

"I'll be fine, whatever bed I fall in." - Jacky Hay, The Little Slipper Company, when asked if she was OK at the end of the SAFLEC dinner last week. As soon as she'd said it, a look of horror crossed her face and she blushed. Ah, Jacky, your quotes are priceless.

"I guess to a man with a hammer, everything looks like a nail." - An enigmatic explanation by Russell Addinall of FLIC on why he didn't want to be quoted on something else.

 

S&V Directory - Order now

The directory is ready. On sale for R450. The online version is also available at R450 for 12 months' access.

 

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

 

Exchange rates

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

 
  Euro € GBP £ US $ Yuan Renminbi ¥
05/01/2019 R15.94 R17.79 R13.99 R2.03
12/01/2019 R15.86 R17.76 R13.83 R2.04
19/01/2019 R15.76 R17.85 R13.87 R2.04
26/01/2019 R15.52 R17.97 R13.60 R2.01
02/02/2019 R15.26 R17.42 R13.32 R1.97
09/02/2019 R15.46 R17.66 R13.65 R2.02
16/02/2019 R15.90 R18.15 R14.09 R2.08
23/02/2019 R15.90 R18.32 R14.04 R2.09
02/03/2019 R16.17 R18.77 R14.22 R2.12
09/03/2019 R16.22 R18.79 R14.43 R2.14
16/03/2019 R16.31 R19.15 R14.40 R2.14
25/03/2019 R16.31 R19.02 R14.42 R2.14
30/03/2019 R16.26 R18.90 R14.49 R2.15
06/04/2019 R15.80 R18.36 R14.09 R2.09
13/04/2019 R15.76 R18.24 R13.95 R2.08
20/04/2019 R15.86 R18.33 R14.10 R2.10
27/04/2019 R16.03 R18.56 R14.37 R2.13
04/05/2019 R16.08 R18.88 R14.34 R2.13
11/05/2019 R15.91 R18.40 R14.16 R2.07
18/05/2019 R16.09 R18.32 R14.41 R2.08
25/05/2019 R16.15 R18.32 R14.41 R2.08
01/06/2019 R16.28 R18.41 R14.57 R2.11
08/06/2019 R16.95 R19.03 R14.94 R2.16
15/06/2019 R16.61 R18.65 R14.81 R2.14
22/06/2019 R16.30 R18.24 R14.32 R2.08
29/06/2019 R16.01 R17.88 R14.08 R2.05
06/07/2019 R15.91 R17.74 R14.17 R2.05
13/07/2019 R15.75 R17.57 R13.97 R2.03
20/07/2019 R15.63 R17.42 R13.93 R2.02
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends 16/07: Hides & skins prices

Hides: R1.71/kg. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
18/01/2019 3.94 33.75 81.67
25/01/2019 2.89 31.11 92.78
01/02/2019 2.83 30.63 87.50
05/02/2019 2.53    
13/02/2019 2.95    
15/02/2019 2.95 25.83 62.01
19/02/2019 2.01    
22/02/2019 2.00 31.88 49.21
26/02/2019 2.04    
01/03/2019 2.04 30.00 45.21
14/03/2019 1.63    
20/03/2019 1.60    
27/03/2019 1.67    
10/04/2019 1.68    
24/04/2019 1.78    
26/04/2019 1.49 32.50  
03/05/2019 1.82    
17/05/2019 2.05 34.00  
21/05/2019 1.72    
24/05/2019 1.72 36.67  
28/05/2019 1.74    
31/05/2019 1.74 32.50 48.75
10/06/2019 1.68 41.90  
14/06/2019   25.83 38.57
18/06/2019 1.68 25.83  
28/06/2019 1.66    
01/07/2019 1.67    
05/07/2019   25.00 38.57
12/07/2019 1.70 24.00 38.75
For previous prices, see HERE
 

  

22/07/1948: Roy Nell, Roy Nell Agencies, Durban.
22/07/1960: Holger Stutz, Paul Moeller & Co, Johannesburg.
23/07/1940: Errol Schilder, retired, formerly Barker Footwear, Cape Town.
23/07/1954: Jerome Ingenhoes, Exotan, Port Elizabeth.
23/07/1956: Rob Peschel, emigrated, formerly Outeniqua Tanning [closed], George.
24/07/1982: Thembi Mazibuko-Kahimbaara, Leather Zulu, Randburg.
25/07/1949: Leslie D'Unienville, agent, Durban.
25/07/1952: Antoine Lailvaux, agent, Durban.
25/07/1948: GH Moosa, Riley Trading, Pietermaritzburg.
25/07/1948: Duncan Naidoo, Lugogo, Pietermaritzburg.
25/07/1974: Morné Gerber, Little Slipper Co., Port Elizabeth.
26/07/1958: Mahomed Shaikh, River Queen, Durban.
26/07/1977: Craig Kisten Pillay, Topline Manufacturers, Durban.
26/07/1982: Jameel Cassim, Fashion & Shoe Scene, Gauteng.
27/07/1949: Oli Gardella, retired.
27/07/1959: Vibeke Dugmore, KKI Leather Marketing, Oudtshoorn.
27/07/1958: Morris Marimuthoo, Allimor Footwear, Durban.
28/07/1970: David Platt, formerly Simitri Specialty Chemicals, Kempton Park.
28/07/1950: Charles Stuart White, agent, Durban.

 

In Memoriam this week

22/07/1993: Paul Hoch, Edendale Tannery [closed], Pietermaritzburg.
22/07/1993: Chagan Ratanje, RK Footwear, Harare.
22/07/2008: Derek Brown (b. 13/01/1948), Derek Brown Agencies, Johannesburg.
25/07/2004: Jules Fisher (b. 19/07/1931), Fashionette Footwear [closed], Cape Town.

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.

 

Have a look at these links

We invite 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:
Barksole, shoe and bag repair chain, Cape Town, W Cape, SA: http://barksole.co.za/
Baseline Racquets, tennis and squash gear online retailer, Pretoria, Gauteng, SA: https://baselineracquets.co.za/

 


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Next newsletter: July 29, 2019.

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