S&V Weekly Newsletter Vol.6 No.19, May 11, 2020

This Newsletter is sponsored by SAFLIA

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Restarting retail

A.P. Jones: A slow trickle, and glad of it

Fish Hoek, W Cape, SA – It has been a slow trickle since last Saturday. We are extremely fortunate in that we do have a slow trickle. There are so many businesses out there who have not been able to open and we feel for them. I think that it is all going to be about expectation (or the lack of it!). The further we have gone from month-end and the initial euphoria, the slower the trickle has become.
       Naturally, the CIPC Certificate had to be downloaded. Our staff are all questioned on their health (with specific reference to the Corona Virus) on arrival and then tested with a thermometer for their temperatures. Education regarding social distances between both other staff as well as from customers was vital. We closed one of our two entrances for ease of monitoring and people are asked to sanitize as they enter. So far, we have not been busy enough to request customers to queue outside of the store. Staff lunchtimes and tea times have had to be staggered. All goods that have been tried on are steamed and kept aside for a period of time. The counters at the till point are sanitized after every sale. Our public toilets have had to be closed for the short term. All staff have to wear masks and customers who arrive without have the option to buy a disposable mask for R20, or we are not in a position to allow them to enter the store. We have had to apply a "no returns" policy with regards to all purchases. - Greg Bing, member

The Athlete's Foot: Better than expected

Cape Town, W Cape, SA – March saw a big decline even before lockdown as fewer people came into the centre. The year ahead is bleak as the Waterfront depends heavily on tourists.
       Our reputation as a  specialist in sports footwear helped to bring customers in and we are trading at a substantially higher level than anticipated, albeit on a much lower level than last May.
       At least we can pay the reduced rental landlords have offered and more importantly our staff.
       I would be extremely happy if we can achieve 50% of last year’s turnovers but that means probably just breaking even – there won’t be any tourists in Cape Town till next year!
       After all these years in retail, I have some reserves, but I fear for some of the smaller guys, some of whom used to work for The Athletes Foot. - Barry Selby, member

Ginger Bhagwandas: Demand for sandals

Durban, KZN, SA – Trade was brisk until Thursday the 7 th of May 2020 . Friday and Saturday has been quiet.
       We first opened 2 stores and thereafter opening the other stores gradually.
       We only allowing few customers into our stores to maintain social distancing. We are maintaining strict controls under rules of stage 4 lockdown. Customers are demanding sandals and shorts however this is prohibited.
       Retailers are concerned about trade going forward . It’s about survival at the moment. - Sunil Bhagwandas, member

Louis Shoes: Much better than expected

Cape Town, W Cape, SA – Before I comment on how retail has been for the last week, since returning to work from over a month’s quarantine/lockdown, I just want to say how sorry I am for all the other retail sectors that are still not allowed to trade during level-4 lockdown – restaurants / fast-foods / hairdressers & beauty salons / liquor stores / cigarette vendors / luggage and bags and many more that are not considered “essential items” under level-4 quarantine. And I hope and pray that they will all be allowed to start trading again very, very soon.
       When we returned to work and opened our shop again on Friday the 1st of May we were very nervous and not sure of what to expect – we did not know whether we needed a permit to return to work – we did not know where to buy hand sanitizers / masks and face shields for ourselves and for our staff or even how many people were allowed inside our store at one time. Nevertheless we opened not knowing what to expect and soon found out where to buy all the Personal Protective Equipment (PPE). If another retail store had a sensible policy or sign on their store we copied them. Every day has been and still is a new learning curve of how to trade during a virus pandemic – from making sure every customer entering the store wears a protective mask and sprays their hands with sanitizer – to learning new rules and regulations from everyone around us - like  having my father phone me one night to tell me that he heard on the radio that change rooms are not allowed to be used and no trying on or returns of clothing are allowed - to having my staff tell me that Pep stores are not even allowing the fitting on of shoes.
         Nevertheless customers returned and there was a very joyous overall mood – people were happy just to be allowed out again.
         We were not sure if we would do any business at all and were worried that customers would not have any money left to buy “non-essential” items like shoes and clothing - we were happily surprised and have, so far, traded as normal with similar turnovers to last year's first week of May. - Steven Neimann, member

Stock Exchange News Service (SENS)

HomeChoice - AR and AGM notice

Cape Town, W Cape, SA (April 30, 2020) – Shareholders are advised that the integrated annual report for the year ended 31 December 2019 is available on the Company’s website www.homechoiceinternational.com/integrated-reports.
         Notice of annual general meeting: Shareholders were previously advised on 26 March 2020 that the notice of the annual general meeting (“AGM Notice”) of the Company would be distributed on 30 April 2020.
         As a consequence of the lockdowns imposed in response to the global COVID-19 pandemic and the subsequent market notice issued by the Financial Sector Conduct Authority on 3 April 2020 granting issuers with year-ends of 31 December 2019 through 31 March 2020 a two-month relief period to complete their year-end financial reporting process (“the relief”), the Company will not be distributing its AGM Notice on 30 April 2020. It is anticipated that the AGM Notice will be distributed before 31 May 2020.
         As advised by the JSE, the Company reiterates that market participants should not draw undue adverse inferences as a result of HomeChoice making use of the relief available to it.
 

Mr Price: Publication of final results

Durban, KZN, SA (May 04, 2929) – Due to the impact of the nation-wide lockdown initiated as a result of COVID-19, the work streams related to the finalisation of the Group’s financial results have been delayed.
       As a result, the Group will now release its annual financial results for the 52 weeks ended 28 March 2020 on 25 June 2020. The Group will host a live webcast for all interested stakeholders. Details will be made available on the Group’s website at www.mrpricegroup.com/mr-price-group-investor-relations closer to the time.

Covid-19: More DTIC notifications

Pretoria, Gauteng, SA – Dr Jaywant Irkhede, Director: Leather & Footwear at the Department of Trade, Industry & Competition (DTIC), last week forwarded this announcement. Dr Irkhede's contact details are +27 (0)66 301 2044, jirkhede@thedti.gov.za.
COVID-19 GUARANTEED LOAN SCHEME FOR SMALL AND MEDIUM ENTERPRISES
As announced by the President, National Treasury, the South African Reserve Bank and commercial banks have jointly created a guaranteed loan scheme. The purpose of this scheme is to help small and medium-sized businesses and the economy. In terms of this scheme, R200 billion will be ultimately made available for new loans to existing customers. The initial phase will be R100 billion.
       The key features of the Covid-19 loan guarantee scheme are:
1. Covid-19 loans will be available from banks to eligible businesses in good standing with their commercial banks with an annual turnover of less than R300 million.
2. Funds borrowed through this scheme can be used for operational expenses such as salaries, rent and lease agreements, contracts with suppliers, etc. Loans will cover up to three months of operational costs and will be drawn down monthly.
3. Banks are not obliged to extend Covid-19 loans, and those that do will use their normal risk evaluation and credit-application processes. A business’ owners may be required to sign surety for the loan.
4. Each business may accept only one Covid-19 loan.
5. Covid-19 loans will be offered at a single, agreed lending rate by all banks participating in the scheme. The rate will track the repo rate.
6. A six-month repayment holiday will commence from the first drawdown, although interest will accumulate from the date on which the first drawdown on the loan occurs.
7. Repayment of interest and capital starts after six months and businesses have a maximum of 60 months to do so. Borrowers can repay the loan ahead of schedule.
8. The scheme will be rolled out by banks over the next few weeks.
       The scheme works on the principle that profits and losses are ultimately shared between government and the banks. The scheme will receive all ‘profits’ on the loans, i.e. the difference between the rate at which banks lend the money (together with limited costs). This will include a guarantee fee charged to the banks in relation to the scheme. These profits will be used to offset any losses that the scheme makes. If the scheme suffers any further losses, these will be absorbed by the banks themselves, capped at 6 per cent of the size of the loan. Any further losses will ultimately be covered by the fiscus.
       Please contact your bank for further details and eligibility criteria.

They Said It

"I'm keeping busy washing dishes, and I'm learning how to make scones...my wife is really keeping me on the job." - Ginger Bhagwandas, of men's outfitting mini-chain Ginger Bhagwandas in Durban, KZN, SA, who has been ordered by his son, Sunil, to stay at home during the lockdown.

"We are very obedient, because our son otherwise whips us, if we don’t follow orders." - Leather columnist Sam Setter, who is locked down in Florence, Italy. His son and daughter-in-law are both doctors in Italy.

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the lockdown that you'd like to share with the industry? We will publish the throughout the lockdown, so please let us know. - tony@svmag.co.za

Updating the 2020 S&V Directory

I am using the lockdown to complete the 2020 edition of the S&V Directory. Something productive you could do with your lockdown time is to let me know if you have moved, had any other address or staff changes in the last 12 months. Please mail to tony@svmag.co.za.

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/

ABSA Agri Trends: Hides & skins prices

Please note: We will not be sending out any hide reports over the lockdown period. The hide markets will be closed. - Conce Moraba, agricultural economist, Absa group.

11/05/1945: David Maisey, emigrated o the UK, formerly Brondean Agencies, Port Elizabeth, E Cape, SA.
11/05/1951: Walter Kurth, emigrated to Australia, formerly Corbeau, Cape Town, W Cape, SA.
11/05/1973: Shaun Bucktaraj, Palm Footwear, Durban, KZN, SA.
12/05/1946: Gordon Howie, The Runner group, Johannesburg, Gauteng, SA.
12/05/1954: Louise Pelser, retired to Philippolis, Free State, SA, formerly with SAFLEC, Durban.
12/05/1976: Hennie Groenewald, ACA Threads, Cape Town, W Cape, SA.
13/05/1934: Dennis Linde, retired to the W Cape, formerly SAFLIA, Pinetown, KZN, SA.
13/05/1980: Hayley Mitchell, Silkworm, Johannesburg, Gauteng, SA.
13/05/19??: Carol Roberts, Trailmix Trading, Durban, KZN, SA.
14/05/1950: Phillip Fox, Jumbo Footwear, East London, E Cape, SA.
14/05/1952: Eric Majoor, retired, formerly agent and retailer, Durban, KZN, SA.
14/05/1952: Devan Sukool, Devan's Footwear Agency, Durban, KZN, SA.
15/05/1941: Pieter van Niekerk, retired, formerly Midland Leather KZN (Gringo), Port Shepstone, KZN, SA.
15/05/1974: Brett Isaacs, BMI Agencies, Johannesburg, KZN, SA.
17/05/1951: André Otto, retired, formerly Bata, Pinetown, KZN, SA.

In Memoriam this week

12/05/2011: Charles Burger (b. 28/12/1968), Klein Karoo International, Oudtshoorn, W Cape, SA.
14/05/2010: Peter Edginton (b. 19/11/1949), Front Edge Technologies, Johannesburg, Gauteng, SA.
15/05/2010: Louis Conradie (b. 26/06/1935), Conloo Joinery, Welkom, Free State, SA.
17/05/2002: Johan Wilken (b. 1/11/1925), Klein Karoo International, Oudtshoorn, W Cape, SA.

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:
Castaway Components, Cape Town, W Cape, SA. Zinc spin and die casting:
Castelllano Beltrame, East London, E Cape, SA. Tassel, braid and cord manufacturer.

Contact us

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

Next newsletter: May 18, 2020.

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

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