S&V Weekly Newsletter Vol.6 No.33, Aug 17, 2020
This Newsletter is sponsored by SAFLIA
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Retail
Botswana
Logistics a problem
Kopano Stores, men's outfitter. Majita, safety and uniform footwear distributor.
Gaborone, Botswana – Botswana came out of its second lockdown on Friday, but trading was "quiet", director Zaf Khan said. "Hopefully things will pick up next week."
He said there were a number of logistical difficulties, notably with footwear being held up at the border.
On the retail side, he said he hoped there wouldn't be another lockdown, and that trading would improve later in the year.
On the PPE and wholesale side, where Majita supplies local and central government departments with safety, work, police and other tender footwear, he said business was more consistent, but that there too, logistical problems were an issue.
Lesotho
Cutting margins only option
Anwary's, general dealer, 1 store.
Butha-Buthe, Lesotho – Trade was good for the first 2 to 3 weeks after the lockdown ended in May, but since then had dropped to around 30% of the turnover of the pre-lockdown period, director Khalid Anwary said.
"Our only option has been to reduce margins and to increase turnover," he said. "Buying cheaper footwear hasn't worked for us. People want brands, but they want to pay less."
Malawi
New government having an effect
Footwear Centre, family footwear, 2 stores.
Blantyre, Malawi – Contentious elections last year led to an economy downslide on autopilot and "our worst year ever", Chairman Rafiq Hajat said. "That was followed by Covid, with people diverting money from footwear to essentials, and with the low general income of the people here, it meant we were really struggling, selling only one or two pairs a day.
"There were new elections in May, and the new government has embarked on a massive cleanup of corruption, which has seemed to have resulted in the embezzled funds, which were trickling down, now drying up!"
He said all retail was struggling, with several long-established businesses closing down and even Bata scaling down.
"It's left us as just about the last man standing," he said. "Chinese imports continue, but the discerning customer comes to us for quality brands. We're the only place in Malawi where a man can get a pair of size 12 shoes, for example."
However, surviving on retail sales alone was extremely difficult. On top of that, the cash flow was further constricted by some suppliers who began insisting on cash before delivery due to the effects of the COVID -19 crisis.
The one bright spot was the awarding of tenders. "Previously, because of corruption, we had no chance to win any governmental tenders, however that may change for the better. Indeed, we've recently won some good corporate orders, and those are keeping us afloat."
South Africa
Consumers short of money
Fitwell's Image, men's outfitter, 2 stores.
Benoni, Gauteng, SA – Most customers were placing lay-by orders, manager Eustice Mahlangu said. "There just isn't money around," he said. "Until the situation improves, we're also not buying stock."
Hepworths closes stores
Johannesburg, Gauteng, SA – Men's outfitting mini-chain Top Life Menswear cc, which trades as Hepworths and Mike's Outfitters, has closed all but 4 of its stores, member Adrian Levi confirmed last week.
People
Eco Rubber member dies
Durban, KZN, SA – Eco Rubber managing member Malcolm Ramakrishna died over the weekend. He had been ill with Covid-19 for some weeks. An obituary will follow.
APLF director retires
Hong Kong – APLF director Perrine Ardouin, who has been with the trade fair company for 24 years, has decided to retire, she said in an email. Her successor will be Grace Lee, who ran the APLF-Leather fair 9 years ago.
"I will be working closely with her and the team as a consultant for APLF until our fairs in Hong Kong next March," she wrote.
Grace Lee’s contact details: grace.lee@informa.com, direct Line: (852) 2585 6135
Finance
Rights offer 'to help TFG take advantage of opportunities'
Cape Town, W. Cape, SA – There were 3 reasons for the rights offer by TFG, CEO Anthony Thunström told S&V Newsletter on Friday, after we asked if it was to fund the purchase of Jet.
He wrote:
The 3 key reasons for the rights issue were as follows:
- To further insulate TFG’s balance sheet during a very uncertain period in the Global and local economies.
- To allow TFG to continue to invest behind its proven, organic growth levers, particularly in respect of OMNI-channel retailing and local, quick response manufacturing capabilities.
- To allow TFG to take advantage of expected industry consolidation events, where high quality retail assets are likely to become available at attractive prices.
According to a Stock Exchange News Service report on August 11, the rights offer, which was to raise gross proceeds of up to R3.95 billion, consisted of an offer of 94,270,486 new TFG ordinary shares at a subscription price of R41.90 per Rights Offer Share.
The results of the Rights Offer were:
Rights Offer Shares available for subscription : 94 270 486; 100.0
Subscription for Rights Offer Shares : 92 648 575; 98.3
Applications for excess Rights Offer Shares : 122 799 202; 130.3
Excess Rights Offer Shares allocated : 1 621 412; 1.7
They Said It
"Some people have used this time to screw their suppliers." - Denis Tuchten, retired retailer and ongoing trader.
"Savab is the Arabic word for reward - and if you spell it backwards, it's Bavas." - A.R. Bava & Co. MD 'Raymie' Bava on the origin of his house brand.
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 |
| 2020/08/15 |
R20.57 |
R23.73 |
R17.37 |
R2.49 |
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 |
| 2020/08/15 |
22.08 |
24.40 |
18.64 |
2.68 |
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 |
| 2020/08/15 |
428.56 |
473.55 |
361.90 |
52.06 |
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
17/08/1939: Mike di Lembo, Villani Shoes, Johannesburg.
17/08/1959: Berkly Lupton, Apeco, Johannesburg.
17/09/1969: Rajeev Pattundeen, Palm Footwear, Durban.
17/08/1972: Alistair Watt, Bresan Footwear, Pietermaritzburg.
18/08/19??: Robbie Blom, Leisure Holdings, Durban.
18/08/1958: Mike Wallace, agent, Cape Town.
18/08/1961: Braam Pretorius, ?, formerly Watson Shoes, Great Brak River.
18/08/1971: Rooksana Moosa, Mozak Shoes, Amanzimtoti.
19/08/1959: Luis de Freitas, Leather Leisure, Welkom.
19/08/1979: Suran Sukdav, Ornella Footwear, Durban.
20/08/1965: Craig Brouwer, Albatros Clothing & Promotional Gifts, Germiston.
20/08/1980: Nicholas Bryant, A Greenaways and ProFit Safety Footwear, Cape Town.
21/08/1949: Brian Pollock, retired, formerly Jordan Shoes, Cape Town.
21/08/1952: Wayne Little, Matas Import, Cape Town.
21/08/1974: Lisa Rheeder, Acol Chemical, Harare.
22/08/1936: Norma Varley, retired, Edgars, Durban.
22/08/1954: Jax Snyman, The Sweat Shop, Johannesburg.
22/08/1956: Carlo Longano, Bodynamics Institute, Cape Town.
23/08/1947: Leon Volschenk, Leo D’ Mar, Great Brak River.
23/08/1949: David Sheppard, DP Sheppard & Co, Port Elizabeth.
23/08/1965: Glyn Giani, the Footwear Design & Technology School of SA, Pinetown.
23/08/1971: Raymond Schutte, agent, Pretoria.
In Memoriam this week
17/08/2016: Alan Sykes (b.17/10/1945), Western Tanning [now Mossop Western Tanning] and Corium [closed], Wellington.
18/08/2016: Christian Meyer (b. 16/12/1936), Jack & Jill [closed], Port Elizabeth.
19/08/2002: Dick Ilsley (b.11/12/1921), BUSM [closed], Durban.
19/08/2019: Ronald 'Ronnie' Harris (b. 4/12/1934), La Nuova Shoes [closed], Pinetown.
20/08/2016: Gordon Horsfield (b.), GW Cowie & Co, Durban.
21/08/????: Edward Jones-Davies (b. 10/06/1925), BUSM [closed], Port Elizabeth.
21/09/1993: Bhagwandas Dayaram Ambaram (b. 15/07/1943), JFK Trading, Durban.
22/08/2006: Bob Butler (b. 01/02/1928), Burton’s Shoes, Cape Town.
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:
Cindy HCC, Pinetown, KZN, SA. Women's footwear manufacturer.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: August 24, 2020.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
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