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

S&V Weekly Newsletter Vol.5 No.48, December 2, 2019

This Newsletter is sponsored by SAFLIA

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

 

Good news last week

Tracking SA's recovery in the headlines:
Historic transfer of 132 title deeds in Stellenbosch thanks to the Municipality, Johann Rupert and the FMF - A Free Market Foundation press release
Eskom to subject 2,000 more staff to lifestyle audits as fight against corruption intensifies - Business Maverick on Friday

 

Retail last week

Comment from 4 retailers on Saturday
"Mr Tekkie is trading beautifully. We've had a real banner month and thus far, a real banner Black Friday. We've had nice momentum across the country. I think it's because there's space for an athletic fashion retailer offering footwear, clothing and accessories, and because we have put a lot of effort into staff service - there's a value in that. We're up to 36 stores, and we'll probably open another 30-odd next year, depending on how the market is. We see potential for about 200 stores in South Africa. At this stage, we're not looking outside the country." - Bernard Mostert, director, Mr Tekkie, George, W Cape. National chain.

  "Black Friday killed November like you can't believe. However yesterday was like a rocket - there was no place to walk in the store. Today there are probably half as many people, but it's definitely worth being open. Profit margins are very low, but we use it to clear oddments and dead stock and to generate cash flow. We don't mark down our bread-and-butter lines." - Mohammed Baksa, member, Aron Sport cc, Mokopane/Potgietersrus, Limpopo, SA. Independent, 1 store, sportswear.

  "We didn't take part in Black Friday. We tried it last year, but it didn't work for us. I think shoppers go mostly to the bigger stores for those deals. Last week was very slow, especially for the last week of November. Partly because of Black Friday, I suppose, partly because of unemployment." - Dan Harie, member, Kalee's Shoes & Shoe Repairs cc, Duran, KZN, SA. Independent, 1 store, family footwear and repairer.

  "We've been busy, but I don't know how much it has to do with Black Friday. We have a few specials, but it's beach weather, we sell a lot of beachwear, and the tourists are in town. Simon's Town is very seasonal, and we're always busy in tourist season and when schools and universities are shut." - Aneela Kara-Vassen, member, Kalidas Clothing, Footwear & Swimwear, Simon's Town, W Cape, SA. Independent, 1 store, beachwear, headwear, flip flops, comfort footwear, technical outdoor footwear, catering for large sizes.

 

 

 

Stock Exchange News Service (SENS) releases last week

Woolworths - trading update
Cape Town, W Cape, SA (November 27, 2019) – Group sales for the first 20 weeks ended 17 November 2019 (current period) increased by 2.2% compared to the 20 weeks ended 11 November 2018 ( prior period') and by 2.9% in constant currency.
       In South Africa, Woolworths Fashion, Beauty and Home ( FBH') sales grew by 2.8% which was ahead of the market growth to end October as reported by the Retail Liaison Committee ( RLC'). Comparable store sales increased by 3.1%. Price movement in Fashion categories was 3.4% and overall net space growth across FBH was 1.4%. Food sales increased by 8.8%, with comparable store sales 6.5% higher and price movement of 5.4%. The business has maintained positive volume growth and continues to grow market share. Net space growth was 3.6%.
       The Woolworths Financial Services book reflected positive year-on-year growth of 8.6% as at the end of October 2019. The annualised impairment rate for the four months ended 31 October 2019 was 3.6% (four months ended 31 October 2018: 3.5%). In Australia, David Jones sales for the period declined by 2.1%. The disruption from the Elizabeth Street store refurbishment, due for completion in March 2020, contributed to the decline. Comparable store sales (which include online) were 0.7% lower. Online sales grew by 68.0% and now comprises 10.4% of total sales. Country Road Group sales declined by 4.7%, impacted by the planned exit from Myer. Comparable sales growth of 0.7% includes online, which grew by 7.7% and now represents 19.5% of total sales.
Constant currency information: The constant currency information contained in this announcement has been presented to illustrate the impact of changes in the Group's major foreign currency, the Australian dollar. In determining the constant currency turnover and concession sales growth rate, turnover and concession sales denominated in Australian dollars for the current year have been adjusted by application of the aggregated monthly average Australian dollar exchange rate for the prior year. The foreign currency fluctuations of our rest of Africa operations are not considered material, and have therefore not been applied in determining the constant currency turnover and concession sales growth rate. The aggregated monthly average Australian dollar exchange rate is R10.10 for the current period and R10.30 for the prior period.
       The constant currency information, which is the responsibility of the Group's directors, has been prepared for illustrative purposes only, and may not fairly present the Group's financial position, changes in equity, cash flows or results of operations. The information contained in this announcement, including estimated financial information and constant currency information, has not been reviewed or reported on by the Group's external auditors.

 

SARS Customs destroys illegally imported goods valued at over R7m

Durban, KZN, SA (November 29, 2019) – Customs officials of the South African Revenue Service (SARS) began destroying several illegally imported vehicles and clothing valued at over R7-million in Durban, according to a press release on Friday.
       Over 13 000  bales of illegally imported clothing, valued at R6,75-million, as well as 15  vehicles, valued at a total of R450 000, were destroyed.
       According to SARS Customs Executive Patrick Moeng,  SARS Customs has destroyed 11 514 bales of clothing and footwear valued R2.5 million and 57 vehicles valued at R7.1 million since April this year.
       He said Illegal trade takes place through various mechanisms. This includes smuggling (bringing goods into the country undetected, or exporting them undetected), fraudulent shipment of goods via a third country to take advantage of preferential import duties and falsely declaring goods under tariff headings that do not attract high duties, amongst others.
       Recently, a high-level inter-governmental task team was established between the Department of Trade and Industry (the DTI), International Trade and Administration Commission (ITAC) and SARS to tackle illicit trade, with a focus on clothing, textiles, leather and footwear, scrap metals and gold.
       SARS as a member of this task team has been working intensively in 3 key provinces with the highest import volumes in clothing and textiles. The provinces are Western Cape, KwaZulu-Natal and Gauteng.
       He said the devastating impact of illegal imports includes the following:

 

  • import duties and value added tax (VAT) due to SARS are not paid, which is a loss to the fiscus
  • distorts the local economy in the affected value chain
  • a decline in the country’s ability to manufacture goods locally
  • job losses, particularly in the manufacturing sector
  • contravention of intellectual property rights
  • discourage local companies to innovate in these sectors
  • the fuelling of corruption through these illegal activities.

  For more information, please contact sarsmedia@sars.gov.za or call Sandile Memela 082 800 3750

 

 

They Said It

"Joe was my Factory Manager at Millana...a Somerset lad. He got lured away to New Zealand a couple of years before everything went 'belly up' at Millana. He was a naughty bugger...so we got on quite well. The stories I could tell......alas none printable!" - Michael Wakeling, former MD of Millana Shoes in Port Elizabeth, on Joe Hembro, who died recently in New Zealand.

 

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
05/10/2019 R16.52 R18.56 R15.04 R2.10
12/10/2019 R16.32 R18.68 R14.78 R2.08
19/10/2019 R16.52 R19.19 R14.78 R2.08
26/10/2019 R16.20 R18.74 R14.61 R2.06
04/11/2019 R16.54 R19.17 R14.82 R2.10
09/11/2019 R16.37 R18.98 R14.85 R2.12
16/11/2019 R16.26 R18.98 R14.71 R2.09
23/11/2019 R16.21 R18.88 R14.71 R2.09
30/11/2019 R16.16 R18.95 R14.65 R2.08
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends 28/11: Hides & skins prices

Hides: The current average hide price is R1.65/kg, this is 0.6% higher than last week’s price of R1.64/kg. The current price is 0.3% lower than prices were a month ago and the current hide price is 58.0% lower than prices were a year ago. The hide market remains under immense pressure. Abundant supplies continue to weigh down the global and local market..- Conce Moraba, 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
2018/01/05 11.17 38.33 87.00
2018/01/12 11.17 32.14 101.65
2018/01/19 10.86 36.11 91.50
2018/01/26 10.39 32.50 92.22
2018/02/02 10.17 33.13 91.27
2018/02/09 9.94 32.50 88.26
2018/02/16 9.60 32.86 89.97
2018/02/23 9.85 31.25 80.97
2018/03/02 9.66 32.22 89.56
2018/03/09 9.62 33.75 90.50
2018/03/16 9.56 32.22 87.63
2018/03/23 9.22 33.22 84.00
2018/03/30 8.86 36.67 82.50
2018/04/06 8.98 35.00 81.25
2018/04/13 8.40 35.13 86.00
2018/04/20 8.18 34.13 86.11
2018/04/27 7.89 33.33 83.13
2018/05/04 8.14 29.00 72.50
2018/05/11 7.71 30.50 82.22
2018/05/18 7.78 31.38 86.06
2018/05/25 7.74 30.71 95.89
2018/06/01 7.43 31.67 87.50
2018/06/08 7.67 32.11 87.40
2018/06/15 7.60 32.50 86.70
2018/06/22 7.13 32.78 86.50
2018/06/29 7.04 32.14 86.67
2018/07/06 7.07 35.83 91.78
2018/07/13 5.74 40.63 95.27
2018/07/20 5.85 40.56 96.83
2018/07/27 5.73 36.67 89.11
2018/08/03 5.32 34.44 87.10
2018/08/10 5.31 35.00 91.11
2018/08/17 5.34 36.00 91.00
2018/08/24 5.21 33.13 96.88
2018/08/31 4.61 35.45 95.18
2018/09/07 4.65 30.00 99.38
2018/09/14 5.08 34.50 93.91
2018/09/21 4.93 30.00 95.02
2018/09/28 5.13 37.30 95.56
2018/10/05 5.00 30.56 95.00
2018/10/12 4.95 31.25 92.87
2018/10/19 4.69 31.11 92.60
2018/10/26 4.82 31.67 85.90
2018/11/02 4.85 30.63 96.88
2018/11/09 4.33 31.11 97.00
2018/11/16 4.15 30.78 91.28
2018/11/23 3.93 30.56 95.00
2018/11/30 3.85 30.63 95.00
2018/12/07 3.82 30.71 92.50
2018/12/14 3.74 31.25 81.43
2018/12/21 3.89 32.00 91.00
2018/12/28 3.71 31.00 84.00
       
2019/01/04 3.71 33.00 96.69
2019/01/11 3.94 33.75 92.78
2019/01/18 3.00 31.11 81.67
2019/01/25 2.83 30.63 87.50
2019/02/01 2.53 33.75 79.61
2019/02/08 2.95 25.83 62.01
2019/02/15 2.45 31.88 49.21
2019/02/22 2.04 31.00 45.00
2019/03/01 1.72 28.33 45.00
2019/03/08 1.63 31.00 45.71
2019/03/15 1.60 32.00 54.03
2019/03/22 1.67 33.00 45.00
2019/03/29 1.53 32.50 38.64
2019/04/05 1.68 33.00 43.57
2019/04/12 1.79 32.50 40.82
2019/04/19 1.78 32.50 42.61
2019/04/26 1.82 33.00 44.29
2019/05/03 1.71 34.00 44.29
2019/05/10 1.72 36.67 45.64
2019/05/17 1.72 35.71 48.75
2019/05/24 1.74 32.50 41.90
2019/05/31 1.69 33.00 45.00
2019/06/07 1.69 25.83 38.57
2019/06/14 1.68 25.83 36.08
2019/06/21 1.68 25.83 36.08
2019/06/28 1.67 25.00 38.57
2019/07/05 1.70 24.00 38.57
2019/07/12 1.71 25.00 36.00
2019/07/19 1.71 25.83 36.33
2019/07/26 1.59 25.83 36.00
2019/08/02 1.58 28.75 41.67
2019/08/09 1.57 25.83 36.04
2019/08/16 1.54 24.00 35.96
2019/08/23 1.52 25.83 35.98
2019/08/30 1.51 25.83 36.37
2019/09/06 1.53 25.83 38.57
2019/09/13 1.78 25.83 38.57
2019/09/20 1.79 25.00 35.50
2019/09/27 1.78 23.33 39.29
2019/10/04 1.86 23.33 39.29
2019/10/11 2.09 23.33 39.29
2019/10/18 1.74 23.33 39.00
2019/10/25 1.65 23.33 38.19
2019/11/01 1.72 23.33 41.43
2019/11/08 1.61 21.67 42.86
2019/11/15 1.64 19.44 42.86
For previous prices, see HERE
 

  

02/12/1949: Stephen Chetty, retired, formerly NFLC, Vanderbijlpark, and Edcon, Johannesburg.
02/12/1968: Teddy Moodley, Caprini Footwear, Durban.
02/12/1971: Happy Shongwe, Happy Boutique, Mbabane, Swaziland.
02/12/1974: Stuart Galbraith, Milspeed Marketing, China.
03/12/1939: Douglas Oates, retired, formerly Beier Safety Footwear, Pinetown.
03/12/19??: Brandon Geyser, EVA Industries, Durban.
03/12/1976: Quintin Marais, Rolfes Chemicals, Boksburg.
05/12/1941: Kishor Makan, agent, Johannesburg.
05/12/1961: Eckhard Marshing, ACA Threads, Cape Town.
05/12/1962: Mahomed Amod Mahomed, Willowton Footwear, Pietermaritzburg.
05/12/1963: Dr Clive Jackson-Moss, ISTT, Grahamstown.
05/12/1970: Robert Chapman, Branded Footwear, Port Elizabeth.
06/12/1970: Ryan Hansen, left the industry, formerly with CL Hansen Agencies, Durban.
07/12/1947: Denton Estment, retired, formerly Tuftex, Pinetown.
07/12/1960: Faldiela Paulsen, Dynatrade, Sandton.
07/12/1973: Brendan Thomas, Techmelt & Polymers, Pinetown.
08/12/1970: Doug Turner, Uniek Leatherworks, Polokwane/Pietersburg.
08/12/1972: Alan Shadbolt, Castaway Components, Cape Town.
08/12/1978: Barbara Wessels, Fleur Avant, Stellenbosch.

 

In Memoriam this week

02/12/1996: Pieter Du Plooy, Bata Zimbabwe, Bata SA.
02/12/2008: Tony Laycock (b. 26/01/1951), Mario Levi Manufacturing [closed], Uitenhage.
03/12/2017: Jim Butterworth (b. 13/12/1937), retired, formerly Elliott Footwear [closed], Crown Footwear and Martin Johnson [closed], Durban.
04/12/2007: Neville Beckley (b. 27/01/1915), SA Footwear [closed], 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:
BLC Leather Technology Centre, Northampton, UK. Provider of risk management solutions forthe leather supply chain.
Blooming Gorgeous Boutique, Pretoria, Gauteng, SA. Women's boutique.

 

Contact us

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

Next newsletter: December 9, 2019.

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

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