S&V Weekly Newsletter Vol.6 No.39, Sept 28, 2020
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Retail
Botswana
Business 'is very tricky'
Safety-Quip, PPE distributor, 1 store.
Francistown – Trading conditions in Botswana have been "a rollercoaster ride", Safety-Quip proprietor Farai Musungwa said.
"The rules keep changing," he said. "You can't forecast for more than a month."
He said September 30 - Independence Day - "is normally a bigger holiday and shopping day than Easter", but that travel restrictions between districts, which have been reintroduced, would probably dampen trade.
Getting sufficient stock has also been a challenge. Safety-Quip imports "90%" of its products from SA, and sends a courier to fetch it. They require permits to exit and re-enter Botswana.
Safety-Quip has become much more involved in the supply of respiratory protection since the start of the pandemic, but SA banned the export of respiratory products until its recent move to a Level 1 lockdown.
"Business is very tricky," he said, "but we're doing alright under the circumstances."
Lesotho
People have to shop at home
Pay & Save Hyperstores, family outfitter, 3 stores in Lesotho and 1 in N.W. Province.
Maseru – The lockdown had provided one major advantage for local retailers, and one major disadvantage, director Ridwaan Sayanvala said.
"The advantage has been that the people with money - government workers, farmers, and so on - used to go to Bloemfontein over weekends to shop. Now they're shopping at home.
"The disadvantage has been that people who work in South Africa either couldn't get to work or couldn't get home."
However, he said, "aside from the first couple of months of lockdown, we haven't really lost out."
What had changed was that Chinese-owned stores had taken the bottom end of the jeans and T-shirt market "and we can't compete". Footwear, however, had been steady. Pay & Save concentrates on branded product, and "unit sales are down, but turnover is up".
South Africa
Jet: TFG awaiting clearance on neighbouring state stores
SA stores 'must endeavour to increase local procurement', tribunal rules
Cape Town, W. Cape, SA (September 25, 2020) – Following the announcement last Wednesday by the Competition Tribunal of its approval, subject to conditions, of the takeover by TFG of Jet, TFG on Friday said it was acquiring 382 Jet stores and about 4 800 employees in South Africa.
It said the acquisition by TFG of the Jet stores and assets in Botswana, Namibia, Lesotho and eSwatini, "remain subject to satisfactory fulfilment or waiver, as the case may be, of conditions precedent including, inter alia, approval by regulatory authorities in these jurisdictions".
Jet has 20 stores in Botswana, 9 in eSwatini, 10 in Lesotho, and 27 in Namibia. No mention was made of 3 stores in Ghana, 3 in Mozambique, and 18 in Zambia.
The conditions imposed by the commission cover staff (including no retrenchment, for 2 years, as a result of the merger), stores (must be integrated into TFG) and local procurement, where "the merged entity must ensure that Jet stores maintains at least the same ratio of procurement of apparel products from South African manufacturers and suppliers as it did at the end of its preceding financial year. In addition, the merged entity must endeavour to increase the target firm’s ratio of procurement of apparel products from South African manufacturers and suppliers as at the end of its preceding financial year."
Adidas explains decision not to supply Edgars
Johannesburg, Gauteng, SA – Adidas SA sales director EM South Kevin Jooste has responded to a query on why the company will not supply Edgars post its takeover by Retailability.
S&V asked: Since Retailability is presumably financially sound and low risk, why not supply Edgars when...just about every other supplier is keen to do so? The only other supplier [we know] is not going to supply the new Edgars is Nike. What is the link between them not supplying and Adidas not supplying?
He wrote: “This is not a move linked to what any other supplier is or isn’t doing. In these challenging economic times, adidas has taken the unilateral decision to structure its distribution network in a way that works best for the brand. The decision in relation to Edgars was, in fact, taken by adidas prior to lockdown when Edgar’s future was in doubt. Notwithstanding the fact that the outlook for Edgars may now be better, adidas stands by its decision which is fully congruent with our current distribution strategy and commercial imperatives. As we all know, retail isn’t what it once was and every brand owner will need to make difficult decisions. We wish Edgars success.“
Manufacturing
South Africa
IDC publicises new funding scheme
Johannesburg, Gauteng, SA – The Industrial Development Council (IDC) has sent CTFL manufacturers details of the new Working Capital Interest Subsidy (WCIS) grant funding for qualifying companies. It supplements the PIP and CIP, which are also being amended.
The IDC said:
This is the initial component of the revised Clothing & Textiles Competitiveness Programme (CTCP) now renamed the Clothing, Textiles, Footwear & Leather Growth Programme (CTFLGP).
The CTFLGP is a programme of the Department of Trade, Industry and Competition aimed at structurally changing the clothing, textiles, footwear, leather & leather goods manufacturing industries by providing funding assistance that will result in sustainability, innovation, economic and export growth as well as employment creation by improving overall competitiveness in these sectors.
The unexpected Covid-19 pandemic and the resultant economic downturn have resulted in further revising the CTFLGP to allow for immediate relief to affected companies.
For the year ending 31 March 2021, the CTFLGP will comprise of a Working Capital Interest Subsidy (WCIS) only. This fund is an interest subsidy at the prevailing prime interest rate on working capital loans to the benefit ceiling of R700 000 per applicant. These guidelines will be amended to include other components of the Programme as and when it is deemed necessary and aligned to the funding availability. Amendments will be published on the CTCP website (www.ctcp.co.za).
The CTFLGP is available to the Clothing, Textiles, Footwear, Leather and Leather Goods Sectors. Qualifying sectors should form part of one or more of the following processes:
Clothing manufacturing; Textile manufacturing; Cut, Make and Trim (CMT) operators in the manufacturing processes mentioned; Footwear manufacturing; Leather goods manufacturing; Leather processing (specifically for the Leather Goods and Footwear Industries) and The participation of Design Houses, even where the Design House partners with one or more CMT’s, is excluded.
They Said It
"I am unable to send mail [from this email address] as it only receives it. I could years ago, but you know progress and computers!!" - Pat Potter, secretary of the SLTC UK. Yup. Just when you learn the system, someone changes it.
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 |
| 2020/08/22 |
R20.23 |
R22.45 |
R17.15 |
R2.47 |
| 2020/08/29 |
R19.74 |
R22.14 |
R16.58 |
R2.41 |
| 2020/09/05 |
R19.66 |
R22.06 |
R16.61 |
R2.42 |
| 2020/09/12 |
R19.83 |
R21.42 |
R16.74 |
R2.45 |
| 2020/09/19 |
R19.32 |
R21.08 |
R16.32 |
R2.41 |
| 2020/09/26 |
R19.92 |
R21.81 |
R17.12 |
R2.50 |
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 |
| 2020/08/29 |
23.33 |
26.16 |
19.60 |
2.85 |
| 2020/09/05 |
23.27 |
26.11 |
19.66 |
2.87 |
| 2020/09/12 |
23.66 |
25.56 |
19.97 |
2.92 |
| 2020/09/19 |
23.73 |
25.90 |
20.04 |
2.96 |
| 2020/09/26 |
23.26 |
25.48 |
20.00 |
2.93 |
3. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
Official US$ Rate |
| 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 |
|
| 2020/08/29 |
430.86 |
483.20 |
361.90 |
52.71 |
|
| 2020/09/05 |
428.42 |
480.70 |
361.90 |
52.89 |
|
| 2020/09/12 |
428.70 |
463.13 |
361.90 |
52.95 |
|
| 2020/09/19 |
428.45 |
467.52 |
361.90 |
53.46 |
80.48 |
| 2020/09/26 |
421.04 |
461.12 |
361.90 |
53.04 |
81.49 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (September 18, 2020) - The average price of hide increased 3.0% to R0.61/kg from last week. The local hide market has seen an improvement in hides that can be traded, but the local automotive, upholstery and show sectors remain under pressure. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Abrie Rautenbach, head Absa agribusiness, and Paige Bowen, 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 |
| 2020/07/31 |
0.57 |
25.19 |
43.13 |
| 2020/08/07 |
0.61 |
26.77 |
42.50 |
| 2020/08/14 |
0.58 |
28.57 |
43.57 |
| 2020/08/21 |
0.57 |
25.63 |
43.57 |
| 2020/08/28 |
0.59 |
27.88 |
43.57 |
| 2020/09/04 |
0.61 |
27.17 |
43.57 |
Note: For previous prices, see HERE
28/09/1938: Mervin Bloom, retired, formerly Meroda Footwear [closed], Cape Town.
28/09/1946: Richard Bryant, retired, formerly Mossop Western and Fusion Leather, Cape Town.
28/09/1963: Loll Bishoon, agent, Johannesburg.
28/09/1967: Rajesh Morar, Quik Serv Shoes, Pietermaritzburg.
29/09/1942: Moon Govender, Arc Footwear, Durban.
29/09/1957: Monica Hoffman, Chafkins, Benoni.
29/09/1959: Ismail Haffejee, Capri Bag, Durban.
29/09/1962: Venessa Schmid, The Whatnot, Cape Town.
29/09/1963: Gavin Wilkins, formerly Eddels Shoes, Pietermaritzburg.
29/09/1967: Hitesh Motiram, Nakuls, White River.
29/09/1968: Milton Zwart, Ribtech, Pietermaritzburg.
29/09/1964: Denzil Spolander, African Gameskin Group, Cape Town.
29/09/1976: Brad Isaacson, agent, Durban.
30/09/1934: Ben Peters, Tuftex, Pinetown.
30/09/1944: Dennis Wilkens, retired, formerly Martin Johnson [closed], Pietermaritzburg.
30/09/1950: Mohamed Farouk Limbada, Kirimon Traders, Durban.
30/09/1966: P ‘Segie’ Govender, Image Footwear, New Germany.
01/10/1954: Essop Kader, Kaytex Belts, Pretoria.
01/10/1960: Amanda McCarthy, Groundcover Leather Company, Curry’s Post.
01/10/1964: Steven Broughton, African Hide Trading, Port Elizabeth.
02/10/1964: Mano Nair, Shoe Quip, Pinetown.
02/10/1947: Ronnie Ackermann, Curio City, Knysna.
02/10/1962: Johan Bezuidenhout, Hidskin Processors, Johannesburg.
03/10/1969: André van der Merwe, Oasis Tanning, Krugersdorp.
03/10/1969: Robby Stoller, Dangee Corporation, Johannesburg.
04/10/1939: Basil Tannenbaum, XLNT Agencies, Johannesburg.
04/10/1964: Nelson Govender, Prisaan Footwear, Pinetown.
In Memoriam this week
29/09/2012: Richard McCulley (b. 14/09/1964), agent, Cape Town.
29/09/2004: Noel Eric Teifel (b. 06/03/1928), NE Teifel & Co, Midrand.
02/10/1998: Sarel Roets, Leatherite, Pretoria.
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:
Coats SA, Pinetown, KZN, SA. Thread supplier.
Colba Tannery, Addis Ababa, Ethiopia. Tannery.
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Contact us
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Next newsletter: October 5, 2020.
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