S&V Weekly Newsletter Vol.5 No.36, September 9, 2019

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Retail last week

Comment from 5 retailers on Saturday
"This last week has been good, except today, which has been absolutely dead, although Saturdays are normally busy. It's been good since the beginning of the month, but the year as a whole has been about 20% down. We're promoting ourselves through social media, and we've created a website. We wanted to try online retail, but the time isn't right. At the moment you have to give more discounts. Usually 10% was enough, but now it's often 15%, even 20% to get the sale." - Shiraz Osman, Gaby's Funky Fashion, Pretoria, Gauteng, SA. Independent, 2 stores, men's and women's clothing, men's, women's and children's footwear.

"The first few after month end are quite good. Traditionally, from the 25th to the end of the month are also good trading days, but not now. As we move towards Christmas, there are a few green shoots, and I just hope the fourth quarter will be better. As far as stock is concerned, I buy products that are in constant demand, and make sure I have enough stock so that when the customer comes in, we have what he wants in terms of brand, style and colour. It's not necessarily cheap footwear, because we cater to the middle class and up, and we have a reputation for selling quality products. We read there has been some growth, but it has to filter down to our level." - Sunil Bhagwandas, Ginger Bhagwandas, Durban, KZN, SA. Mini-chain, 6 stores, men's outfitter.

"We were closed for one-and-a-half days this week because there were rumours of attacks. There's a criminal element that hides behind the attacks on foreigners, and they target the stores with expensive merchandise, irrespective of who owns them. The whole of Gauteng is tense. The year as a whole has been down, but generally we have maintained, despite the unemployment and other problems. We all have to try harder, just with simple things like cleaning outside your store to make it more attractive to shoppers. You can tell whether a store is owned by locals or foreigners just by whether it's clean or dirty outside. I'm an optimist - you can't carry on if you're not - but the only time things will improve is if the government is bold and does things. The president hasn't come to the party yet." - Seroze Akoodie, member, Gino Armani, Springs, Gauteng, SA. Independent, 1 store, men's outfitter.

"This week has been terrible. The retail environment is very erratic, and it's affected by everything - government, the economy, crime. You can have a good day, a bad day, an okay day - it's impossible to predict. I know money is tight, but I think people are holding back because of negative sentiment, rather than because they don't have money to spend. For the year so far, turnover is down and overheads are up. I've tried everything I can think of - in-store advertising, sales. When I think we're running a bit lean on stock, I've put in more. But I honestly don't know whether it's made a difference. Now we're just going carefully and hopefully things will improve." - Billy Goott, director, Glamour Shoes, Johannesburg, Gauteng, SA. Independent, 2 stores, women's shoes and bags.

"This week has picked up quite nicely. I hope it goes on that way. The year so far hasn't been great, and sort of on a par with last year, up here and there. My strategy is to stick with the basics, which make up 80% of my stock." - Maurice Edelstein, proprietor, H. Schneider Retailers, Cape Town, W Cape, SA. Independent, 1 store, men's outfitter.

Stock Exchange News Service (SENS) release

Steinhoff - results of the general meeting
Shareholders are hereby advised that at the general meeting of Steinhoff International Holdings N.V. ("Steinhoff" or "the Company") held at 13:00pm CET on 30 August 2019, at Steigenberger Airport Hotel, Stationsplein Zuid-West 951, 1117 CE Schiphol, Municipality of Haarlemmermeer, The Netherlands (the "AGM"), all of the resolutions proposed in the notice of meeting made available to shareholders on the Company's website on 19 July 2019 were passed by the requisite majority of votes cast by the Steinhoff shareholders present or represented at the AGM.
       Number of shares present or represented: 1 043 431 791 (this includes votes abstained, as per the below) % of issued share capital: 25.16%
       The supervisory board announced that - upon recommendation by the audit committee - it has nominated Mazars as the Company's external auditor for the 2019 financial year. As part of its selection process, the audit committee interviewed representatives of several Dutch audit firms that are allowed to perform statutory audits of the annual accounts of Dutch companies whose securities are admitted to trading on a regulated market. Upon their appointment, Mazars Netherlands will be the external auditor of the Steinhoff Group. The Dutch Mazars audit team will work closely with their colleagues in the UK, South Africa and France and in other jurisdictions where possible.
       Mazars nomination will be proposed for appointment by the general meeting at an extraordinary general meeting.

Choppies - availability of forensic report
September 4 - Further to the Company's circular issued on 14 August 2019 and to related announcements released on 14 August 2019, 27 August 2019 and 3 September 2019, shareholders are advised as follows:
         1.It has come to the attention of the board of directors of Choppies (the "Board") that a vast number of shareholders have not had the opportunity to review the Forensic Report issued by Ernst & Young Advisory Services (Proprietary) Limited ("Ernst & Young") in respect of its independent Forensic Investigation into certain transactions to which the Group was party.
          2.The Board has, with a view to availing as much information as possible to shareholders, in the best interests of the shareholders and the Company, taken the decision to make the Forensic Report public and available it the news service of the Botswana Stock Exchange Limited ("BSEL") and on the links provided below.
          3. Accordingly, shareholders are advised that the Forensic Report has been published today, 2 September 2019 and is immediately available on X-News, and on either of the following links: 
  www.wired.co.bw/CHOPPIES/Choppies_Enterprises_Limited-Main_Forensic_Report.pdf 
  and 
  www.wired.co.bw/CHOPPIES/Choppies_Enterprises_Limited- Forensic_Report_Annexures.pdf 
         Per the announcement published on 1 November 2018, the trading of the Company's shares on both the BSEL and on the Johannesburg Stock Exchange ("JSE") remains suspended until further notice.
   The Company's primary listing is on BSEL and its secondary listing is on the JSE. 

Cry the beloved Zimbabwe - and a curry hint

In reaction to the article on Zimbabwe in S&V Footwear & Leather Goods on Friday, retired former PMC director Dieter Zettler wrote: "Like many others I feel deeply about the country as it was part of my sales portfolio between 1965 and 1975 when Rolf [Oltmanns] took it over. At the height of it, Bata in Gwelo produced 40 000 pairs per day – partly because of the tekkie plant. They also had their own rubber plant and tannery. The staff was highly motivated and educated with a lot of line managers being Zimbabweans. R.K. Footwear installed the most modern machinery on par with Europe at that stage and Footwear & Rubber the first 2 station, direct injection moulding machine working with uppers on wooden lasts. Their joint MD, Otto Roubicek, did of course lay the foundation for Bata’s first factory in Africa if I am not mistaken in 1936. But remember all my comments are from a 78 year old.        "PS: I am rambling on. Kogie Naidoo, who was Roy Eckstein’s receptionist at Jaguar Shoes, moved on to the office staff of Hilton College and if you by any chance visit the Hilton Art Festival this coming weekend, you will find her operating a food stall with excellent curry in the main catering tent."

They Said It

"I'm happy to write you a comment. I'll sit down with a box of tissues next to me, and..." - Barry Selby, member of Cape Town retailer The Athlete's Foot. But he's clearly essentially an optimist, because he added: "I'm 75 or 76 or whatever, and I've just signed another 3-year lease." Good on you, Barry. Love the 'whatever' bit. His birthday was on August 5, and he turned 76.

"A third of all shoppers will drop you if they have even one bad experience. That’s a startling fact from a recent Oracle study, which means you have to get the customer experience right—every time." - Sunrise Technologies, quoted in Sourcing Journal.

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/

ABSA Agri Trends 28/08: Hides & skins prices

Hides: R1.52/kg. This is 1% lower than last week’s price of R1.54/kg. The current price is 70.8% lower than prices were a year ago. The market remains under immense pressure, a recovery is not be expected in the short to medium term. The impact of the big decline on hide prices plays an important role in the  broader beef industry, because hides form a part of the cattle’s ‘fifth quarter’ which contributes to the processor’s return from animal purchased. During 2017 and 2018, beef prices were so good, which probably meant that the lower hide prices had a minimal impact and could have been overlooked. However, beef prices have declined now and this is bringing the hide value component back into the spotlight. - Wessel Lemmer, senior agricultural economist, Absa Group. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies.

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, formerly the DTI, now Beier Industries, Pinetown.
09/09/1953: Fernando Santos, Bolton Footwear, Cape Town.
11/09/1938: Roley Rogers, footwear agent, Johannesburg.
12/09/1940: Tony Mason, retired, formerly Resolute Engineering [closed], Cape Town.
13/09/1958: Mark Gibbings, Apeco, Pinetown.
14/09/1941: Rob Jordan, retired, formerly Jordan Shoes, Cape Town.
14/09/1943: B Oerder, Bolt Leather, Bedfordview.
14/09/1955: Rafiq Hajat, Footwear Centre, Malawi.
14/09/1968: Nasser Narot, Shoe Preme, Durban.
14/09/1983: Ridhwana Shaik, Save Our Soles Manufacturing, Lenasia.

In Memoriam this week

09/09/2000: Erik Peter Rormose (b. 11/03/1934), Bulley’s Tannery/Coja Tannery/Silverton Tannery/KwaNdebele Tanning/Kembe Estates.
09/09/2018: Errol Smith (b. 07/02/1946), ENS Machinery, Pietermaritzburg.
11/09/1998: Harry Chafkin, Chafkin's Shoe Co, Benoni.
11/09/2008: Robbie Chapman (b. 10/08/1957), Canterbury International SA [closed], Cape Town.
12/09/2015: Ingo von Falkenhausen (b. 14/12/1931), Cheval Shoes, Pinetown.
13/09/2015: Heinz Adrio (b. 19/08/1940), Busby Leathergoods, Adrio Leathercraft, Durban.
15/09/1995: Andy Bax, NPI, Durban.
15/09/2013: Bruce Mallett (b.27/06/1952), Simply Shoes, Johannesburg.
15/09/2014: Fred Eboru (b. 01/10/1947), Fred Footwear, Port Elizabeth.
15/09/2016: Franco Polia (b. 01/01/1937), designer, Durban.

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:
Beachways Lifestyle, Kenton on Sea, E Cape, SA. Beachwear retailer, including sheepskin slippers.: http://www.beachways.co.za/
Behr's, East London, E Cape, SA. Women's formal, casual and comfort footwear.: https://www.facebook.com/Behrs.Shoes/

Classified Adverts

Shoe sales position sought for Western Cape

I am looking for a sales representative position in the Western Cape with an established shoe company. I have had 7 years' experience with a major brand which has withdrawn from wholesale. Please contact Stan Sadman, 083 485 9121 or stansadman@gmail.com.

Contact us

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

Next newsletter: September 16, 2019.

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