S&V Weekly Newsletter Vol.6 No.34, Aug 24, 2020
This Newsletter is sponsored by SAFLIA
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Retail
Namibia
Job losses hurt
Boutique Monroe, men's and women's outfitter, 2 stores.
Omaruru, Namibia – Namibia has been very hard hit by the lockdowns, partner Deon Meiring said, with many people losing their jobs.
"We're advertising more, and using social media a bit, and trying not to increase prices," he said, "but people just don't have much money. At the moment, for us, materials and textiles are doing better than clothing and footwear."
South Africa
More online, more comfort
Freequency Footwear, men's and women's boutique, 2 stores and online.
Johannesburg, Gauteng, SA – While turnover is significantly down on the same time last year, and less so on turnover immediately prior to the lockdown, Freequency has been adapting its business to the new circumstances, director Jianny Kechriotis said.
"It's not about profit at the moment," he said. "It's about paying staff and rentals, and surviving."
Freequency has redesigned its website (https://freequency.co.za/) "to be more user friendly and modern", and has similarly adapted its Facebook and Instagram pages. He expects online sales to be the major part of Freequency's business in future, but he has also renewed the lease for his Pretoria shop. "We've negotiated with both our landlords for relief, and they've been accommodating," he said.
All Freequency's footwear is imported from Europe, and he cut his winter deliveries by half. "The other half is still overseas," he said, "but my footwear doesn't date, so we'll bring it in for 2021."
With changes to people's behaviour - working from home, socialising less - he sees changes to the styles he's selling. "There are fewer high heels," he said. "It's more about functionality and comfort, flat footwear and utility."
Services bigger than selling
Jaga's Shoe Centre, repairer, men's footwear, 1 store.
Cape Town, W. Cape, SA – Shoe retailing has "gone very quiet", proprietor Ishwar Jaga said, and the business's ancillary services - repairing, key cutting and number plate manufacturing - were currently bigger.
Consumers only have so much to spend
Ghëla Outfitters, men's outfitter, 1 store.
Pietermaritzburg, KZN, SA – Bearing in mind the circumstances, trading has been "steady", partner Madan Ghëla said.
"We've neatened up the shop, and we've improved service as much as possible," he said of the 109-year-old business. "As marketing can be expensive, we don’t think increasing it is necessarily effective because consumers have limited funds and their priorities are health, hygiene and food. Clothing and shoes come after that."
Ghëla had been expecting to hold on to its winter stock, but because of the cold weather, "we've been selling more winter than summer merchandise", he said.
Zimbabwe
Edgars Zimbabwe unaffected by Edcon's troubles
Bulawayo, Zimbabwe – Edgars Zimbabwe Ltd has not been affected by the problems facing former parent Edcon in South Africa, according to former group CEO Linda Masterson, who retired in June. Edcon sold its 42% share in Edgars Zimbabwe, along with rights to the brands, to its subsidiary. Ms Masterson's successor is Tjeludo Ndlovu.
Finance
Stock Exchange News Service (SENS)
Truworths forecasts major drop in earnings
Cape Town, W. Cape, SA – Investors are referred to the trading statement and the trading update published on SENS by Truworths International Limited (the ‘Group’) on 25 May 2020 and 15 July 2020, respectively.
As announced, the COVID-19 pandemic has materially affected the Group’s Truworths business in South Africa and its Office business in the United Kingdom. The consequential impact of the difficult trading environment on the profitability and liquidity of Office has necessitated a re-assessment by management of the carrying value of the Office segment’s trademarks and right-of-use assets relating to store leases. This has resulted in non-cash impairment charges amounting to £118 million (R2.5 billion, based on the period-end exchange rate) and £13 million (R283 million, based on the period-end exchange rate) being raised against the Office trademarks and right-of-use assets, respectively.
The Group’s headline earnings per share (‘HEPS’) (which exclude the impairment of the Office assets by definition) and earnings per share (‘EPS’) for the period are estimated to decrease as follows:
Estimated 52 weeks to 28 June 2020 (cents) & 52 weeks to 30 June 2019 (cents) & decrease on prior period (%)
* HEPS : 388 to 417 & 580 & -28% to -33%
* EPS : -127 to -142 & 145 & -188% to -198%
The 2020 year-end financial reporting process has been challenging as the Group has had to manage the impact of COVID-19 on the auditing processes. There have also been a number of significant accounting issues to contend with, including the business consequences of COVID-19, the first time adoption of IFRS 16 and the impairment of the Office assets. The Group’s final audited results for the 52-week period ended 28 June 2020 will be announced simultaneously with the publication of the audited annual financial statements on or about 3 September 2020.
They Said It
"The only thing I couldn't sell was my wife, but that's always the case with old stock." - Hymie Kaplan, former owner of Hariton's Outfitters in Wynberg, Cape Town. who closed his business - originally founded in 1957 - earlier this year. "When I closed, I sold my hat division to Woodheads, who then opened a 'pop up shop' inside their building. My hat website was a great success and my hat sales were growing constantly, with orders coming in from all parts of the country. As far as the rest of my stock is concerned, I managed to sell a large quantity of my shoes at cost and the balance together with clothing I dumped at 25% of cost. I continued working for Woodheads but when Covid arrived they decided to set an age restriction, so at 71, that was it for me. However, I'm enjoying my retirement and am now sorry I didn't retire 5 years ago. I spent 36 years in the retail trade, with shoes always being a large part of my business. I tried as much as possible to buy locally manufactured goods and feel I was fairly successful in this regard with customers appreciating what I was doing, and supporting me all along."
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 |
| 2020/08/22 |
R20.23 |
R22.45 |
R17.15 |
R2.47 |
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 |
| 2020/08/22 |
22.48 |
24.94 |
19.05 |
2.75 |
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 |
| 2020/08/22 |
426.90 |
473.72 |
361.90 |
52.30 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (August 17, 2020) - The current average hide price increased by 6.1% to R0.61/kg from R0.57/kg green a week ago. The current price is 10.7% lower than the average price a month ago and is 61.3% lower than the average price a year ago. The local and global hide markets remain under significant pressure, with demand at very low levels, resulting in prices reaching almost zero for many players. Industry players are not very optimistic, given expectations that demand will remain low in the coming 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
24/08/1940: Fred Carpel, agent, Johannesburg.
24/08/1944: Rolf Oltmanns, retired, PMC Group, Pinetown.
24/08/1957: Clive Wood, Crown Footwear, Pinetown.
24/08/1961: Ulf Oehl, Stahl SA, Midrand.
25/08/1957: Judy Ambrose, left the industry, formerly agent, Durban.
25/08/1970: Imran Mahomed, Mr American, Malelane.
25/08/1972: Andrew Fenwick, Saddler Belts & Leathercraft, Durban.
25/08/1978: Adrian Ramsamy, Michelle Footwear, Durban.
25/08/1980: Yvonne Speirs, Fusion Leather, Durban.
25/08/????: Anthea Ball, Adidas, Cape Town.
26/08/1971: Sadia Edries, Rizzo Sales, Cape Town.
27/08/1945: Krish Gangiah, Impact Footwear, Durban.
27/08/1962: Vidrik Thurling, Thurling Investments, Cape Town.
28/08/1947: Kathy Graham, retired, formerly Bagshaw, Port Elizabeth.
28/08/1964: Maon Saxe, Lonshoe Holdings, Cape Town.
28/08/1969: Craig Munro, ? formerly Crafcor Hart Hides (closed), Pietermaritzburg.
29/08/1961: Steve Miller, Queue, Cape Town.
29/08/1976: Minesh Gangiah, Impact Industries Footwear Manufacturers, Durban.
29/08/????: Indira B Ambaram, JFK Trading, Durban.
In Memoriam this week
27/08/2006: Keith Barkus (b. 08/04/1954), agent, Durban.
28/08/1997: Richard Denton (b. 24/06/1914), Ricmar group [closed], Durban.
28/08/2013: Tony Denton (b. 06/03/1943), Ricmar group [closed], Himeville.
30/08/1997: Neville Socher, Medicus agent.
30/08/2015: Willem Delft (b. 10/04/1944), Bobbie Leathers, Uganda.
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:
City Fashions Schoolwear, Lenasia, Gauteng, SA. School wear specialist.
City Outfitters, Johannesburg, Gauteng, SA. Men's outfitter.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: August 31, 2020.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
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