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

S&V Weekly Newsletter Vol.6 No.23, June 8, 2020

This Newsletter is sponsored by SAFLIA

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

 

Restarting retail

Makan's Shoe Centre: Frankly, it's awful

Dharmisha Makan, member. Independent, 2 stores, family footwear.
Johannesburg, Gauteng, SA – It's been awful. There was no rush when we reopened on the 2nd, and it hasn't improved since. Not all stores were permitted to open at Level 4 which meant only half the centre was able to trade.
       I've cancelled all orders that haven't been delivered. I didn't order much for winter, and I still have summer stock from last season.
       Oriental Plaza retailers own their own stores, so rentals haven't been an issue. As chairperson of the  centre trustees and management, we decided to reduce levies by 50% for April and May.

 

MFW Trading: Lots of uncertainty

Shakir Mahomedy, member. Independent, 1 store, Workwear and PPE distributor.
Durban, KZN, SA – We were open throughout the lockdown because we sell some essential items. I wouldn't say there was much demand, but we had some turnover.
       Since the beginning of this month I'd say consumers have been slow to respond. They're working out their budgets and there's a lot of uncertainty.
       We haven't cancelled orders, but we have pushed them out.
       Our landlord gave us a 50% discount for April.

 

Prag Leather & Luggage: Repairs busy, luggage quiet

Arun Prag, member. Independent, 1 store, Shoe repairer, luggage and leather goods retailer.
Cape Town, W Cape, SA – There was a bit of rush on the repair side from Monday to Wednesday because people hadn't been able to get repairs done during the lockdown.
       On the luggage side there hasn't been any action, and the future is unpredictable. With Father's Day coming up on the 21st, we're hoping to promote wallets, laptop bags, backpacks, man bags and that sort of thing. There seems to be some reluctance from some people to go to the big malls, so we hope that will benefit us.
       We received stock on early March, and we haven't cancelled any of the outstanding orders.
       This is a family-owned property, so we were able to work out an affordable solution for the rent.

 

Restarting manufacturing

A. Greenaways (Natal): Chinese production hit by global slump

By Garth Ribbink, member
Durban, KZN, SA – I have plenty of stock of upper material, but few orders. Everyone tells me they're waiting to start summer production, because winter's over and retailers still have stock. I think there's a mountain of footwear out there waiting to be sold.
       It's not an issue for us now, but the upper material situation in China isn't good. One of my suppliers sent me an email which, summarised, reads: "Because of the corona virus, world trade has been damaged - stopped altogether or very, very slow. In China, it is very big problem for our factories - PU resin factory, fabric factory and layer coating factory, they are all in the same trouble. They can't get enough orders to keep production running.  Now they have to close for some days then produce some days, then close again, so the production of orders will not be regular and delivery dates will be unstable."

 

A. Greenaways (Natal): Chinese production hit by global slump

By Garth Ribbink, member
Durban, KZN, SA – I have plenty of stock of upper material, but few orders. Everyone tells me they're waiting to start summer production, because winter's over and retailers still have stock. I think there's a mountain of footwear out there waiting to be sold.
       It's not an issue for us now, but the upper material situation in China isn't good. One of my suppliers sent me an email which, summarised, reads: "Because of the corona virus, world trade has been damaged - stopped altogether or very, very slow. In China, it is very big problem for our factories - PU resin factory, fabric factory and layer coating factory, they are all in the same trouble. They can't get enough orders to keep production running.  Now they have to close for some days then produce some days, then close again, so the production of orders will not be regular and delivery dates will be unstable."

 

Closing

Via la Moda
Johannesburg, Gauteng, SA – Exotic leather goods manufacturer Via La Moda has closed. Its sister company, furniture manufacturer Comfort Creations, remains open.
       The Via La Moda website is still up and selling online.

 

Shoeperama
Durban, KZN, SA – Neil Button of Stowell & Co, the business rescue practitioner of mini-chain Dened cc, trading as Shoeperama and owned by Ed Lahee, told the High Court in Pietermaritzburg last Wednesday that "there is no longer any reasonable prospect for [Dened] to be rescued", and he asked for it to be put into liquidation.
       He said Dened had sufficient stock and funds to trade profitably, "but insufficient funds to do so while concurrently paying off overdue trade and finance creditors".
       He said Dened had assets of R1.3 million, and liabilities of R9.1 million, and "in a liquidation...the maximum dividend creditors could expect was 15c/Rand, excluding liquidation costs".
       In his report, he said he had been notified by retired retailer Bill Zurich that the name Shoeperama belonged to him and not to Dened, and that he had permitted Dened to use the name pending the fulfilment of sale conditions.
       Shoeperama had 7 stores and 27 employees.

 

The Red Foot travel goods retailer
By Jayanti Jeewa, proprietor – East London, E Cape, SA I have been struggling with my business for a while now. This lockdown just amplified it.  Dipping into reserves. Had to call a halt. [I will not be selling it] I will be closing it down. At my age, not sure what I am going to do yet. Luckily, both my children and their spouses are educated and have stable jobs and are living in Johannesburg, so it's just my wife and I at home. 

 

Changes

Cape Town, W Cape, SA – Former Cape Union Mart Group outdoor and footwear merchandise director Kennith Barlow, who left just before the lockdown, is joining the Busby Group.

 

By Adri Croucamp, SABS Auditor, Timber, Fibre & Safety, SABS Commercial (Pty) Ltd
Pretoria, Gauteng, SA – Just a short goodbye notice. After 30 years of active service at SABS, it has also become my turn for official retirement from the SABS. To all my friends in the footwear industry – thank you for what you as experts taught me about shoes. Footwear was my life and I loved to work with all of you. I will definitely miss this part of my life and the service I could offer to you all in the footwear industry. Tony, thank you for all your effort and updating of all TC meetings and reports from your 'pen'. My new contact number will be 071 422 7376.

 

Murdered doctor was on Leather Sick Fund panel

Tulbagh, W Cape, SA – Dr Roelof Botha, 59, who was murdered on his farm on June 1, was the panel doctor for the Leather Industry Sick Fund. The recently retired fund manager, Odette Vosloo, wrote: "We are indeed shocked and saddened by the brutal murder of our Panel Doctor of 12 years. Being the Tulbagh doctor meant that he was so much more than a G.P. to our Tarzan Shoes Members."
       Her place has been taken by Sonja Willemse, and she added: "I was meant to have retired by end of this May but am staying on to complete Sonja’s training and to help ‘mop up’ after lockdown!"

 

They Said It

"While watching 'Who wants to be a Millionaire' last week, an interesting question came up for quarter of a million pounds, and can you believe it, I knew the answer! The question was: 'Crispin is the patron saint of which of the following trades?', and 'Shoemaker' was one of the four answers, which I knew, as a few years ago I used to be the agent for Crispin Shoes, owned by Peter Broughton. Isn't that a coincidence? But unfortunately I didn't get the money." - Ivor Saks, agent.

"f we make it through the week, then it will all be worth it." - Madelein Kearns, Dangee Carken, on what she described as 'a crazy week'.

 

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

 

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
2020/03/07 R17.69 R20.44 R15.67 R2.26
2020/03/14 R18.04 R19.94 R16.25 R2.32
2020/03/21 R18.92 R20.50 R17.60 R2.48
2020/03/28 R19.63 R21.93 R17.61 R2.48
2020/04/04 R20.58 R23.37 R19.03 R2.68
2020/04/11 R19.70 R22.43 R18.01 R2.56
2020/04/18 R20.43 R23.49 R18.79 R2.65
2020/04/25 R20.59 R23.53 R19.02 R2.68
2020/04/30 R20.24 R23.27 R18.51 R2.62
2020/05/09 R19.89 R22.69 R18.29 R2.58
2020/05/16 R20.11 R22.49 R18.58 R2.61
2020/05/23 R19.24 R21.47 R17.64 R2.47
2020/05/30 R19.48 R21.67 R17.54 R2.45
2020/06/06 R18.93 R21.28 R16.77 R2.37
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (June 02, 2020) - The current average hide price increased by 9.5% to R0.72/kg from R0.66/kg green a week ago. The current price, however, is 18.9% lower than the average price a month ago and is 58.7% lower than the average price a year ago. Essentially, there’s no local automotive manufacturing and global demand is substantially down. The global hide market hasn’t opened up yet, with many tanneries not expected to re-open their doors post-COVID. The local hide industry is expected to remain under pressure in the short term. Stakeholders hope that the export market will pick up again from August/September. NB* Hide prices are determined as the average of the RMAA (Red Meat Abattoir Association) prices and prices of independent companies. - Conce Moraba, agricultural economist, Absa group.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
2020/01/03 1.38 35.00 46.67
2020/01/10 1.42 28.69 45.71
2020/01/17 1.35 30.74 45.71
2020/01/24 1.39 33.75 48.14
2020/02/07 1.36 33.47 47.50
2020/02/14 1.36 33.75 47.50
2020/02/21 1.32 33.75 47.50
2020/02/28 1.29 37.22 43.89
2020/03/06 1.29 36.50 43.50
2020/03/13 1.31 36.00 43.50
2020/03/27 0.93 37.22 48.33
2020/04/03 0.92 37.78 47.36
2020/04/10 0.89 35.63 42.22
2020/04/17 0.88 39.38 41.25
2020/04/24 0.89 33.82 43.33
2020/05/01 0.82 34.55 46.88
2020/05/08 0.82 32.10 43.33
2020/05/18 0.77 32.10 43.33
Note: For previous prices, see HERE
 

  

08/06/1955: Brad Lemkus, retired, formerly Hi-Tec.
08/06/1958: Sandra Young, left the industry, formerly Archilles Engineering [closed]. Benoni.
09/06/1957: Willem Fourie, Images, Bloemfontein.
09/06/1964: Jayne Pillay, Edcon, Durban.
10/06/1951: Marthus Louw, retired, formerly Bolton Footwear, Great Brak River.
10/06/1954: Dave Moss, Sneakers International, Durban.
10/06/1955: Piet Kleyn, acting CEO, SA Ostrich Business Chamber, Oudtshoorn.
10/06/1961: Richard Turner, emigrated, formerly Bolton Footwear, Great Brak River.
10/06/1983: Jarod Grossberg, G-Step, Durban.
11/06/1948: Basie Vermaak, retired, formerly Watson Shoes, Great Brak River.
11/06/1961: Andy Raouna, left the industry, formerly Multiserv, Johannesburg.
12/06/1954: Frieda Maisey, left the industry, formerly Brondean Agencies, Port Elizabeth.
13/06/1943: Peter Book, retired, formerly Woodheads, Cape Town.
13/06/1950: Maria Caldeira, Solemates, East Rand.
13/06/1966: Benedict Plaatjies, Leather from Hart, Pietermaritzburg.
13/06/1974: Stuart Worrall, Elan-Polo, Cape Town.
14/06/1952: Terry Holton, ACA Threads, Gauteng.
14/06/1969: Alison Piccione, KMP Footwear, Pinetown.
14/06/1963: Niekie Vermaak, KKI Leather Marketing, Oudtshoorn.
14/06/1965: Beverley Riley, Brits Leather Products, Brits.
14/06/1965: Allan Kisten, Spunlok, Pinetown.

 

In Memoriam this week

09/06/2002: Howard ‘Snowy’ Vaubell, Crown Footwear, Pinetown.
09/06/2003: Dr Stanley Shuttleworth (b. 1911), LIRI [closed] founder, Grahamstown.
12/06/2004: Neville Williams (b. 04/1945), Cameo Components/Central Components [closed], Pinetown.

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:
CGA Agencies, Pinetown, KZN, SA. PPE distributor:
Chanti Belts, Durban, KZN, SA. Women's synthetic belt manufacturer..

 

Contact us

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

Next newsletter: June 15, 2020.

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