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S&V Weekly Newsletter Vol.6 No.32, Aug 11, 2020

This Newsletter is sponsored by SAFLIA

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

 

Busby in voluntary business rescue, expects quick turnaround

Johannesburg, Gauteng, SA – Retailer and wholesaler The New House of Busby went into voluntary business rescue on July 30, CEO Bernard Mostert said last week, but he said the principal reason was to allow for a restructuring into a number of separate legal entities, and that he expected it to be "a fairly short process if the plan as presented to creditors and stakeholders is accepted".
       He said Busby's turnover for the period to June 20 was R1.5 billion, and its indebtedness was R360 million.
       "We need to protect the various brands and divisions from cross contagion in the current economic climate," he said. "For example, the clothing brands are down, but they're still trading. The luggage brands are seeing almost no traffic at all. Our brand partners have asked us to restructure so that their brands are safeguarded."
       He said all suppliers had been affected by the business rescue "in the interim", but that "we expect to come out of it quite quickly, and we are confident that a final plan will appeal to suppliers and safeguard the future of the business as well as the business that suppliers receive from the company.”
       He said Busby, which was acquired by the present consortium of owners in 2018 after listing on and then delisting from the Johannesburg Stock Exchange, had had "longstanding structural problems" which had been exacerbated by the pandemic.
       "We don't know when Covid will end. We need to make sensible decisions so that it has a feasible long-term future. Anybody who professes to be able to make definitive long time commitments at this time cannot do so with any certainty. It is critical that we have a view on how COVID plays out and how consumer behaviour will change. At the moment, for instance, footfall in A-grade malls, which represent most of Busby’s portfolio, is down on average by 70%.”
       He said both majority shareholder Cavico, and the group headed by Tekkie Town founder Braam van Huyssteen, which now owns the Mr Tekkie chain, were "willing to continue to invest in Busby on terms and principles that address the long term sustainability of the business.” Mostert was the CEO of Mr Tekkie prior to his transfer to Busby.
       Busby currently retails clothing and footwear brands Aldo, Call It Spring, Steve Madden, and both retails and wholesales luggage and leather goods brands Delsey, Frasers, Kipling, Tony Perotti and its own brands, Busby and Travelite.
       "Which will be stronger in future, retail or wholesale? It's a very good question," he said. "We'll only know when Covid is less of a factor."        Busby currently has over 140 stand-alone and 30 concession stores, and employs around 1300 people.

Retail

Botswana

Second lockdown

Arma Trading Store. Men's boutique, 1 store.
Gaborone, Botswana – Botswana is midway through its second lockdown, director Fazel Allie said, which started on July 31 and will end on Friday. He said trading after the first 4-week lockdown, which started in early April, had been 45-50% down on pre-lockdown trading. He is currently closing 1 of his 2 stores.

Lesotho

Reducing risk

Ellenbee. Men's and women's boutique, 1 store.
Maseru, Lesotho – Trading has been very quiet, proprietor Brian Mulvaney said. He said sales were good in May after a 5-week lockdown, "principally because we had a 50%-off sale - which meant no profit, but some cash flow. Since then, trade has been up-and-down."
       He said Ellenbee was buying smaller orders more frequently. "Partly that's to offer something fresh all the time, partly it's to reduce the risk in case there's a second lockdown."

Namibia

Focussing on fewer brands

Fabulous. Family outfitter, 5 stores.
Walvis Bay, Namibia  – Business was slower than expected last week, member David Mushy said. "We still have lockdown here, and it limits peoples' movements."
       He said one option open to retailers were to ensure high levels of service, "and maybe to focus more. In the past we offered so many brands, some of which didn't really work for us but we kept them anyway. Now we're narrowing our range."

 

South Africa

Benefitting from payouts

First Stop Store. Family outfitter, 1 store.
Johannesburg, Gauteng, SA  – Business had been "fair", manager Suliman Hajat said. "We've had walk-in customers, and people are starting to shop again."
       He said First Stop, which is outside Park Station, had benefitted from railways employees who are still on lockdown, but who are receiving benefits from government.
       "We're afraid to buy too much, or to pre-book in case there's another lockdown," he said, and he believed dealing with wholesalers would be beneficial under current circumstances, "where you can get instant delivery".

 

Lower profits, more volume

Fashion Feet. Family footwear and accessories, 1 store.
KwaDukuza, KZN, SA  – Business was "fairly good", last week, manager Shehnaz Desai said. "It hasn't been bad since the lockdown ended. After the first 10 days of the month it slows down, but we've had a good start to the month.
       "This is a budget store," she said. "We have to look at less profit and more value for money, which I know is more work, but my customers, unless they're brand conscious, want to buy quite a lot with R200, not just one pair of shoes."
       She said shoes "don't last so long these days", meaning customers had to return, but she also stocked cosmetics and other accessories to get customers to back more frequently.

 

Mr Tekkie expanding

George, W. Cape, SA  – Mr Tekkie will open its 38th store, in Brooklyn Mall, Pretoria, shortly.

 

Think! Shoes for sale

By Isabelle Steiger
Cape Town, W. Cape, SA  – Think! Shoes is a unique, stylish, healthy  and green brand from Austria. We have retailed the brand in Cape Town and Johannesburg for over 12 years through our brand stores and we have built a faithful customer base. The shoes are handmade in Europe and cover the need for comfortable and funky footwear. Unfortunately, we had to close our doors in South Africa due to the COVID-19 crisis. We are now left with a substantial pairage of ladies' and gent’s shoes, in full size ranges, with a cost price of R1 million. There is also an online store with a large audience. If you are interested in purchasing the shoes  and online platform, please contact me. The company is in liquidation and offers should be made soonest. - +27 (0)67 148 5791, bellasteiger1@gmail.com

 

Manufacturing

School shoe factory to reopen

Johannesburg, Gauteng, SA  – School shoe manufacturer Etsang Dieta Primary Cooperative, which closed at the end of March, plans to reopen in the last week of August, chairperson Guguletho Nhlapo said on Friday.

 

Small factory planned for Kimberley

Kimberley, N. Cape, SA  – Gerry du Toit, who retired from EVA Components in Durban in February last year, and who has been helping out at ballet footwear manufacturer Dancewell since, is moving to Kimberley at the end of August and will open a small footwear and leather goods factory there.
       He said he plans to make men's and women's sandals, veldskoens and handbags, all in leather. He already has machinery, which he has collected over a period. He can be reached at +27 (0)84 859 9691, gerrydutoit60@gmail.com.

 

 

Stock Exchange News Service (SENS)

Pepkor to dispose of building division

Cape Town, W. Cape, SA (August 04, 2020) – Pepkor is to sell its subsidiary, The Building Company (TBC), to Cashbuild Ltd., for R1 074 700 000. TBC is a building materials retail and wholesale business with 13 branches.

 

They Said It

"Its Woman’s Day, so I’m taking full advantage  – with the monsters home and no alcohol I need a break." - Zureitha Erasmus, marketing coordinator at BBF Safety Group's ad agency, Successful Media, on Friday, looking forward to yesterday's public holiday.

 

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

 

Exchange rates

1. SA Rand (ZAR)

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ CNY ¥
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
2020/06/13 R19.19 R21.39 R17.06 R2.40
2020/06/20 R19.37 R21.28 R17.25 R2.43
2020/06/27 R19.35 R21.28 R17.25 R2.43
2020/07/04 R19.14 R21.24 R17.01 R2.40
2020/07/11 R18.94 R21.16 R16.77 R2.39
2020/07/25 R19.39 R21.36 R16.64 R2.37
2020/08/01 R20.05 R22.28 R17.05 R2.44
2020/08/08 R20.78 R23.02 R17.63 R2.53
Note: For previous rates, see HERE

2. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
2020/06/20 20.39 22.53 18.24 2.58
2020/06/27 20.48 22.52 18.25 2.57
2020/07/04 20.24 22.46 17.99 2.54
2020/07/11 20.54 22.94 18.17 2.59
2020/07/25 21.18 23.26 18.17 2.59
2020/08/01 21.55 23.95 18.31 2.66
2020/08/08 24.05 24.05 18.42 2.64


3. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
2020/06/20 405.54 446.91 361.90 51.17
2020/06/27 405.98 446.46 361.90 51.13
2020/07/04 407.08 451.78 361.90 51.21
2020/07/11 408.89 456.71 361.90 51.70
2020/07/25 421.71 463.13 361.90 51.58
2020/08/01 426.09 473.50 361.90 51.58
2020/08/08 426.53 472.42 361.90 51.93

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (August 10, 2020) - The current average hide price increased by 12.8% to R0.57/kg from R0.51/kg green a week ago. The current price is 14.6% lower than the average price a month ago and is 63.7% lower than the average price a year ago. Global and local demand is at very low levels. Prices are almost zero (across the board) with absolutely no demand and no expectation for any changes ahead. The local hide industry is expected to remain under pressure for the next few months. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Abrie Rautenbach, head Absa agribusiness, and 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
2020/05/22 0.72 26.54 40.00
2020/05/29 0.72 25.44 40.00
2020/06/05 0.70 23.65 40.00
2020/06/12 0.72 31.14 45.71
2020/06/19 0.69 23.62 43.13
2020/06/26 0.73 28.92 47.14
2020/07/03 0.67 23.58 43.13
2020/07/10 0.68 24.96 43.13
2020/07/17 0.61 28.83 45.00
2020/07/24 0.51 25.63 43.13
Note: For previous prices, see HERE
 

  

10/08/1951: Kevin Davidow, Nakara Leather, Namibia.
10/08/1963: Grant Hansen, Fusion Leather, Cape Town.
10/08/1968: Julius Govender, Michelle Footwear, Durban.
10/08/1971: Shane McEvoy, Dodo Shoes, Cape Town.
11/08/1978: Natashia Singh, Palm Footwear, Durban.
15/08/19??: Bob McDonald, retired, formerly Budget Footwear [closed], Durban.
16/08/1957: Paul McMillan, Reflex, George.

 

In Memoriam this week

10/08/2006: Abdool Kader (AK) Seedat (b. 12/03/1933), agent, Durban.
11/08/2011: Ken Riches (b. 15/07/1922), educator, Port Elizabeth.
15/08/2011: Geoffrey Leonard Keane-Murphy (b. 08/03/1927), consultant, Durban.
15/08/2011: Newton Wade (b. 16/06/1925), Panama Shoes [closed], Durban.
15/08/2015: MH Moosaji, Trendsetters, KwaDukuza.
16/08/1997: Ed Aubin, agent, Port Elizabeth.
16/08/2012: Margaret Jordaan (b. 15/01/1931), Centra-Cast, 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:
Choose, Antananarivo, Madagascar. Women's footwear.
Christin's Manufacturers, Cape Town, W. Cape, SA. Exotic leather goods manufacturer.

 


Classified Adverts

Zimbabwe manufacturer seeks components

Tika Shoes, which manufactures safety, security and military footwear, is looking for clearing lines of hook eyelets, footbeds and inner socks, foam linings and 20 mm buckles for combat boots. Please contact: Hashmook Naran, +263 77 328 2907 or tika@zol.co.zw




  

Contact us

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

Next newsletter: August 17, 2020.

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

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