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

S&V Weekly Newsletter Vol.6 No.09, March 2, 2020

This Newsletter is sponsored by SAFLIA

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

 

Retail so far this year

"It's been very difficult, and worse so far than last year. People are spending on staples, and there is less money for leisure. They shop out of necessity. We try to look for deals from suppliers, and sell old stock at discounted prices, like an ongoing Black Friday, but that affects other stock." - Fayaaz Dockrat, director, Sedgars, Vereeniging, Gauteng, SA. Department store and online.

"Our Back-to- School Season was on par with last year. We find our Customer is price sensitive, and while generating growth in this industrial is challenging we are still able to offer our customer quality at affordable prices." - Derik Mulleroperational manager, Mr Matata, Pongola, KZN, SA. Family branded clothing and footwear, 5 stores.


"Christmas was good - it always is, even in really bad years like 1976. January and February are always slow, and this year they were slower than usual, but over the past week, I've noticed an improvement." - Dave Devchand, MD, S&K Showroom/Street Gym, Johannesburg, Gauteng, SA. Mini-chain, men's and women's branded jeans and sneaker wear, 7 stores.

 

Ihlobo Footwear: Creditors' meeting date

Pietermaritzburg, KZN, SA  – The first creditors' meeting for Ihlobo Footwear will be on March 6, according to a spokesperson for joint liquidator Marcel Nel, of Berrangé Inc. She said the firm had a list of creditors, which it could not yet disclose. She said it had not yet been decided whether to make a claim against Bata SA. Bata and Ihlobo were involved in litigation over the supply of work by Bata to Ihlobo.

 

 

Steinhoff 'continues to rebuild value'

Stellenbosch, W Cape, SA (February 27, 2020)  – Steinhoff International Holdings N.V. "continued [its] journey to address past deficiencies and to protect and rebuild value for our stakeholders during the first quarter of the 2020 financial year", according to its unaudited quarterly update for the 3 months ended December 31, 2019.
       Steinhoff is now a global holding company with 4 regional retail divisions: The U.S. where it owns 50% of a mattress chain, Europe, where it holds 100% of the Pepco group and Conforma, diversified retailers, Africa, where its owns 75% of Pepkor, including Pep, Ackermans and the Pepkor Speciality Group, and Australia/New Zealand, where it owns 100% of Greenlit Brands, predominantly involved in household goods.
       Extracts from the 'message from the management board':
       "The second half of the 2019 financial year marked the end of the debt restructuring process, followed with a specific focus on possible solutions to the litigation faced by entities within the Group, and debt reduction initiatives.
       "Despite the ongoing challenges facing the Group, and the tougher trading conditions that we faced during the first quarter of the 2020 financial year, we continued to grow overall revenues. Consolidated net sales from continuing operations for the three-month period to 31 December 2019 increased by 7% to €3 445 million (3MFY19: €3 214 million), with strong contributions from Pepco Group (+15% to €1 143 million) and Pepkor Africa (+7% to €1 285 million). Revenues from Conforama (€805 million) and Mattress Firm (€697 million, now held as an associate), once again confirm their strong market positions.
       "On 24 January 2020, Pepkor Africa released a trading update for the three months ended 31 December 2019, followed by an announcement that it had received a first-time A3.za National Scale Rating from Moody’s Investor Service.
       "The Group continued to work towards a resolution of outstanding legal claims against it, while also evaluating potential claims against third parties. Recoveries against implicated entities and individuals are being initiated where appropriate.
       "We continue to implement the Remediation Plan. Work in the period was concentrated on the completion of improvements to policies and procedures in respect of financial accounting, conflict of interest, and supplier and contract management. The ongoing implementation of the Remediation Plan will remain an area of focus throughout the 2020 financial year.
       "In the previous update we declared ourselves both realistic and encouraged by the progress and outlook. We still face a number of tough challenges and this view has not changed.
       "Trading conditions in 2020 reflect a tougher global economy. Steinhoff’s retail business investments are well diversified geographically and their focus on providing everyday products at affordable prices, through a stable of strong local brands, gives some resilience.
       "Many of the businesses in the Group are dependent in one way or the other on sourcing and supply from Asia. While it is widely expected that the outbreak and spread of the Coronavirus may lead to sourcing and other challenges, it is not yet possible to determine accurately any future impact on business performance. However, businesses in the Group are taking a number of steps to mitigate any potential effect, including alternative sourcing arrangements." - For the full report, go to: http://www.steinhoffinternational.com/downloads/2019/latest-results/

 

They Said It

"I'm not giving up my South African lifestyle for anything." - Former Footwear Trading director Stan Kotkin, who divides his time between SA - home - and Israel, where 2 of his 3 daughters, and 6 of his 7 grandchildren, live.

"Yes, he turns 75 tomorrow and mandatory retirement was done by most principals. We had to make the change in January 2020. Luckily succession planning was done - I've been with him for 25 years. We put him on semi-retirement, so I can keep the old bugger busy. Why wouldn't I use a legend with 40 years' experience in the industry!!" - Afro Thai Imports, Lizzard International and Jockey agent Raymond Schutte, on his father, Chris, who's birthday was on Sunday.

 

SLTC Convention: List of speakers

The list of speakers for the Society of Leather Technologists & Chemists (SLTC) SA Section annual convention (May 15-17) has been finalised. The international guest speaker is Johanna Höger, Assistant Department Manager of the Pruef- und Forschungsinstitut Pirmasens e.V., Germany.
       The other speakers are:
1. ISTT - Dr Clive Jackson Moss
2. Rolfes / MK. – Quintin Marais
3. Olcina Group - Joaquín Páez
4. Stahl - Marcus Breulmann
5. DTI – Jay Irkhede
6. Zschimmer & Schwarz/TST – Dr. Peter Thoma
7. Leather Naturally – Nigel Dunning
8. Smit & Zoon – Johnny Mokbel
       For further information, contact the president, Björn Jönsson (bjorn@leathersystems.co.za), or the treasurer, Warren Phipps (warren.phipps@mendelsonfrost.co.za)

 

The 2020 S&V Directory - Order now

The 2020 edition of the S&V Directory is in production and will be available soon. The online version is available immediately at R450 for 12 months' access.

 

2020 Trade Fairs Another essential service from S&V

Please note that we have updated most 2020 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 ¥
2020/01/04 R15.97 R18.71 R14.31 R2.05
2020/01/11 R15.97 R18.76 R14.36 R2.07
2020/01/18 R16.04 R14.47 R14.47 R2.10
2020/01/25 R15.87 R18.82 R14.39 R2.07
2020/02/01 R16.54 R19.81 R15.00 R2.16
2020/02/08 R16.48 R19.41 R15.06 R2.15
2020/02/17 R16.16 R19.44 R14.90 R2.13
2020/02/22 R16.27 R19.43 R15.00 R2.13
2020/02/29 R17.27 R20.08 R15.66 R2.24
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends: Hides & skins prices

Hide prices (February 19, 2020) - The current average hide price remains at R1.36/kg, compared to a week ago. The current price however, is 0.9% higher than prices were a month ago and is 44.4% lower than prices were a year ago. The local and global hide market remains under pressure, especially with the spreading of the coronavirus impacting manufacturing operations in China. - Conce Moraba, agricultural economist, Absa group.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
2020/01/03 1.38    
2020/01/10 1.42    
2020/01/17 1.42 28.69  
2020/01/24 1.35 30.74  
2020/01/14   33.47  
Note: For previous prices, see HERE
 

  

02/03/1945: Sakkie van der Vyver, retired, formerly Adidas, Cape Town.
02/03/1953: Garth Ewing, retired, formerly Garth Ewing Agencies, East London.
04/03/1946: John Commins, retired, formerly Wayne Plastics, Johannesburg.
04/03/1977: Regan Govender, Paragon Footwear, Pietermaritzburg.
05/03/1937: Arnold Buckby, agent, Cape Town.
05/03/1949: Tony Carnecky, retired, formerly Futura Footwear, Pinetown.
05/03/1983: David Novos, Economic Shoes, Paarl.
05/03/1986: Muhammed Omar, Fashion Square, Durban.
06/03/1971: Sunil Bhagwandas, Ginger Bhagwandas, Durban.
06/03/1976: Kevin Pillay, Alateens Bopsi Footwear, Durban.
07/03/1960: Rafique Moosa, Cassim Moosa Bros. Trading, Pretoria.
08/03/1958: Gary van Rooyen, New Balance SA, Cape Town.
08/03/1962: Rajesh Kulwa, Apeco, Pinetown.
08/03/1966: Yamraj Deeplal, Foot Flair, Amanzimtoti.

 

In Memoriam this week

02/03/1991: Edward Powell (b. 12/02/1967), agent, Johannesburg.
03/03/2003: Gerry Elder (b. 03/08/1928), agent, Cape Town.
03/03/2010: Ernest Alfred ‘Basie’ Heunis (b. 17/05/1923), Silverton Tannery [closed], Pretoria.
06/03/1993: Brian Murphy, agent.
06/03/2011: Livio Sirilli (b. 06/04/1921), Sirilli Shoes, Pietermaritzburg.

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:
Cambanos & Son Agencies cc, Midrand, Gauteng, SA. Curio wholesaler, including game skins:
Camp & Climb, Cape Town, W Cape, SA. Outdoor products retailer:

 

Contact us

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

Next newsletter: March 9, 2020.

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

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