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S&V Weekly Newsletter Vol.5 No.39, September 30, 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 4 retailers on Saturday
"It's been a bit quiet. Krugersdorp city centre has been a bit quiet generally. What I find is that people come in during the month to look, then come back at month end to buy. There hasn't been a noticeable change with the change in seasons." - Viren Bawa, member, His The Man's Shop, Krugersdorp, Gauteng, SA. Independent, 1 store, men's outfitter.

"It picks up from the 25th to the end of the month, which has been the trend for the past year or so. The season makes a difference depending on the department - school wear, for example, picks up in winter with jerseys and so on, but summer - December and January - remains the busiest time." - Mohammed Moosa, director, Holiday Makers, Port Shepstone, KZN, SA. Independent, 1 store, branded men's and women's fashion, school wear and home ware.

"Business is the worst I've seen since I started in 1971. School wear is a big part of the business, which is quiet now because of the holidays. The other part of the business is a department store which I'm slowly winding down. I can't compete with foreigners who don't charge or pay VAT, don't pay PAYE or UIF, and who don't need much margin." - Abdul Rahman Laher, member, IE Laher & Sons, Johannesburg, Gauteng, SA. Independent, 2 stores, school wear and men's and women's fashion clothing and footwear.

"Not good. It was a very mild winter, which didn't help. We're not buying anything fancy. On the footwear side, funnily enough, our best sellers are our Florsheim Cloud Collection, which are the most expensive shoes we sell, but when people put them on, they're sold. Most shopping centres are cut-and-paste duplicates with the same chains, and even though I believe independents are good for them, they're killing us. East Rand Mall also allows pop-up shops in empty spaces, and they pay 10% of their turnover, whatever it is. I asked for the same terms - they said the pop-up stores could be given a month's notice, and I said I would be happy with that too, but they wouldn't budge. I was very relieved when they let me out of my lease because they wanted part of my shop, and I've moved across the road, which is much better." - Butch Wilson, member, Hyde's Man's Shop, Boksburg, Gauteng, SA. Independent, 1 store, men's outfitter.

 

SARS publishes footwear tariff code changes for comment

Pretoria, Gauteng, SA – The SA Revenue Services' technical tariff amendment team has published a draft document for public comment on proposed changes to tariff codes, including a number for imported footwear. The opportunity for comment closes on October 10, and the amendments would come into force from January 1. This is only done annually.
       The changes to the footwear tariff codes, requested by the Southern African Footwear & Leather Industries Association (SAFLIA), will require importers to provide much greater detail for synthetic upper footwear. SAFLIA felt that tariff headings 64029900 (other) & 64041990 (also other) "are being misused and perhaps abused", according to a statement. it said 152.12 million pairs of the total 207.64 million are imported under those codes, with an average value of R45.77 per pair.
       There will also be changes to the tariff codes for leather upper and canvas upper soccer/rugby, cycling and cricket footwear.
The list of proposed changes can be found here: http://www.sars.gov.za/Legal/Preparation-of-Legislation/Pages/Draft- Documents-for-Public-Comment.aspx

 

Masterplan meeting

There will be a further meeting of stakeholders (by invitation from the Minister) to further  discuss the implementation of the proposed CTFL Masterplan tomorrow.

 

Stock Exchange News Service (SENS) releases

Truworths - UK debt restructuring concluded

Cape Town, W Cape, SA (September 26, 2019) – Investors are referred to the SENS announcement dated 2 July 2019 in which the Group advised that it had entered into discussions with the United Kingdom ("UK") lenders to the Office footwear retailing business regarding potential debt restructuring options. The company further advised at the time of the release of its annual results on 15 August 2019 that negotiations had progressed constructively and that management believed that they would be concluded satisfactorily.
       The Group advised that it has now successfully concluded an agreement with its principal South African bankers, Standard Bank, to provide sterling denominated funding that has enabled the Office business to be refinanced.
       The board advises that the funding has been obtained on favourable commercial terms based on the strength of the Group's balance sheet, and is secured by a guarantee furnished by the Truworths operations in South Africa.
       The funding amount of GBP32.5 million, together with GBP10.5 million of the Office business' existing cash reserves that are surplus to operating requirements, have been used to settle the Office business' existing sterling denominated debt amounting to GBP43 million. Negotiations with the UK lenders in this regard were concluded successfully, and all transactions were implemented by 24 September 2019.
       Trading conditions for retailers remain challenging in the UK as a result of dampened consumer confidence and uncertainty ahead of the end-October 2019 Brexit deadline. The board advises however, that management continues with the implementation of the turnaround and alignment initiatives in the Office business and early indications are that the business has been suitably stabilised.

 

Changes

Harare, Zimbabwe – Former Paramount Garment Works procurement manager Nicola Hamp-Adams left at the end of August. Gudrun Durkin is the new Head of Procurement. Her email is gudrun@paramount.co.zw. Paramount manufactures uniforms and work wear under the Javlin brand.

Durban, KZN, SA Former Michelle Footwear W Cape agent Grant Majoor has left the industry. Sales in the region are for now being handled by Warren and Sarah Gedye.

 

They Said It

Michelle Footwear co-founder Mike Gedye died last Wednesday. This week's 'They Said Its' are all related to his death.

"All the good ones are going, and I don't feel so hell of a well myself." - Italian Leathers' Lionel Astill.

"We're out of the box people." - His widow, Sarah Gedye, speaking at the funeral service on Friday.

"We took so many chances - it was pure adrenalin. I miss those days." - Eric Majoor, Gedye's first Natal agent, reminiscing at the service.

 

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
27/07/2019 R15.91 R17.68 R14.29 R2.07
03/08/2019 R16.42 R17.97 R14.78 R2.13
10/08/2019 R17.08 R18.34 R15.25 R2.16
17/08/2019 R16.97 R18.58 R15.30 R2.17
26/08/2019 R17.00 R18.74 R15.27 R2.13
31/08/2019 R16.68 R18.46 R15.18 R2.12
07/09/2019 R16.32 R18.13 R14.79 R2.07
14/09/2019 R16.22 R18.16 R14.55 R2.05
21/09/2019 R16.44 R18.61 R14.92 R2.10
28/09/2019 R16.55 R18.61 R15.14 R2.12
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends 27/09: Hides & skins prices

Dorper skins were R25.00/skin and merinos skins were R35.50/skin. - 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.

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
16/07/2019 1.71    
23/07/2019 1.71    
29/07/2019 1.59    
09/08/2019 1.58 28.75  
13/08/2019 1.57    
28/08/2019 1.52    
17/09/2019 1.78    
For previous prices, see HERE
 

  

30/09/1934: Ben Peters, Tuftex, Pinetown.
30/09/1942: Cassim Shaikh, Hopewell Footwear, Durban.
30/09/1944: Dennis Wilkens, retired, formerly Martin Johnson [closed], Pietermaritzburg.
30/09/1950: Mohamed Farouk Limbada, Kirimon Traders, Durban.
30/09/1966: P ‘Segie’ Govender, Image Footwear, New Germany.
01/10/1954: Essop Kader, Kaytex Belts, Pretoria.
01/10/1960: Amanda McCarthy, Groundcover Leather Company, Curry’s Post.
01/10/1964: Steven Broughton, African Hide Trading, Port Elizabeth.
02/10/1936: Cyril Saxe, Lonshoe Holdings, Cape Town.
02/10/1964: Mano Nair, Shoe Quip, Pinetown.
02/10/1947: Ronnie Ackermann, Curio City, Knysna.
02/10/1962: Johan Bezuidenhout, Hidskin Processors, Johannesburg.
03/10/1969: André van der Merwe, Oasis Tanning, Krugersdorp.
03/10/1969: Robby Stoller, Dangee Corporation, Johannesburg.
04/10/1939: Basil Tannenbaum, XLNT Agencies, Johannesburg.
04/10/1964: Nelson Govender, Prisaan Footwear, Pinetown.

 

In Memoriam this week

02/10/1998: Sarel Roets, Leatherite, Pretoria.
06/10/2016: Ernie Aaron (b. 21/05/1922), agent, 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:
Benita's Boutique, Bloemfontein, Free State, SA. Women's boutique. https://www.facebook.com/ClothingJewelleryGifts/
Bettini, Johannesburg, Gauteng, SA. Men's and women's boutique. http://bettinimoda.co.za/

 




ONCE IN A LIFETIME TRAINING OPPORTUNITY
3 WEEK HANDBAG PATTERNMAKING COURSE by ARSUTORIA

The National Cluster, FLIC, with the assistance of the DTI’s SASS scheme and the General Goods Association wish to host a HANDBAG & PATTERNMAKING course in South Africa from 2ND TO 20th March 2020. This will be facilitated by ARSUTORIA, a leading patternmaking school in Italy.
This full-time course will be dedicated to bag prototype making and will cover three different types of handbag construction. This practical course will be presented by an expert Italian technician. Students will leave with all the patterns used and the three bags they have made during the course.
The course is aimed at:

  • Experienced and self-taught handbag patternmakers who wish to acquire technical patternmaking skills
  • Pattern makers who want to make handbag prototypes
  • Designers, craftsmen, etc., passionate about handbags who wish to learn how to make bags.
  • Encouraging new smme’s to enter the handbag industry to meet the anticipated increase in demand for locally manufactured handbags from Retail over the next 10 years

This is truly an outstanding opportunity! A similar 3-week course at the ARSUTORIA School in Milan, Italy, would cost Euro 3500, excluding accommodation and air fares. The course will be offered at a nominal registration fee of R2500 per candidate. Accommodation and transportation will be for your own account.
Please email your expression of interest to generalgoodsassociation@gmail.com to reach us by 4 October 2019.
Please include;
NAME
ADDRESS
PROVINCE
CONTACT NUMBERS
EMAIL ADDRESS
COMPANY NAME (if applicable)
Brief description of why you wish to attend this course

 




 

 

 

 

Contact us

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

Next newsletter: October 7, 2019.

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

 

 

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