S&V Weekly Newsletter Vol.6 No.47, Nov 23, 2020
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Business
South Africa
Cape Cobra: Hanging on to skills
Cape Town, W. Cape – Exotic leather goods manufacturer Cape Cobra Leathercraft (Pty) Ltd "has been producing flat out since June", but at a reduced capacity, director and sales manager Richard Schäfer said.
"This year we've had some short time, but we've avoided retrenchments," he said. "In this business, with the skills required, that's very important."
To compensate for the loss of international tourists, he said the company had been promoting online sales. "This is a tactile business, but they have been growing. There also seems to have been a growth in South Africans buying local brands.
"We're trying to explore every avenue to sell, and although the figures are down, we've survived.
"I expect next year to be an upward trajectory, with our business in Dubai growing, and supplying retailers in the US. But we're by no means out of the woods yet."
Shoe Valley: Anticipating a return to normal
Benoni, Gauteng, SA – 2-store family footwear retailer Shoe Valley saw turnover climb by around 30% in October, followed by further improvement in the first 2 weeks of November, owner Mohamed Ahmed said.
"This last week hasn't been good at all," he said. "I've no idea why - perhaps people are waiting for Black Friday. However, I'm hoping for a good last week of the month. I think we're definitely over the worst."
Covid has prompted Shoe Valley to make significant changes.
In its Daveyton store, particularly, it has dropped global brands in favour of local brands because average purchases had dropped from the R1 000-R1 500 range to R500-R1 000, "and more towards the lower end of that," he said.
Its CBD store, started as a Branded Feet franchise, will shortly become a Shoe Valley outlet, again in response to the demand for somewhat lower prices.
Covid has also led to a personal loss: Mohamed's father, Suliman, died of the disease, aged 71, on August 9. Father and son ran the business together for 20 years.
MFW Trading: Squeezing 6 months into 2
Durban, KZN, SA – Work wear, uniforms, safety footwear and promotional items distributor MFW Trading was relatively unaffected by the lockdown because it is an essential business, member Shakir Mahomedy said, but pressure on the supplier pipeline, coupled with corporate customers trying to catch up with their orders, had led to difficulties.
"Normally, business that we get over 6 months we now have to supply in 2," he said. "Many of our suppliers are having issues with components and production, which affects deliveries to us."
He said MFW had had a boost with sales of respiratory PPE, but that sales were now returning to normal.
Ultimo: Expecting a good December
Klerksdorp, N.W. Province, SA – For family outfitter Ultimo, trade in October and November thus far has been up on last year, member Prakash Morar said.
"We definitely took a hiding during lockdown," he said, "but since the move to Level 1, it's really picked up."
He said people were holding back slightly last week, probably because of the upcoming Black Friday. "Why they have that in this country, I don't know," he said, "especially not for clothing."
He said Ultimo had not had to adapt its business model to cope with the lockdown. "We're a destination store, and we have a very big customer base," he said.
"Formal wear was definitely more affected, with no matric dances and so on, but now there are some functions being held, and there has also been a pickup in the number and size of weddings, which has benefitted the formal side."
He said he expected December to be good. To make up for losses during the original lockdown, Ultimo has cut its end-of-year shutdown by a week. It will still close on December 24, but will re-open on January 4 instead of January 10.
Dischem owner acquires Baby City
Pretoria, Gauteng, SA – The Competition Tribunal on Friday unconditionally approved the takeover by Ivlyn Consolidated Holdings of Fairy Tales Boutiques (Pty) Ltd and Somerset Baby Hyper (Pty) Ltd, trading as Baby City, and Global Toys (Pty) Ltd, which trades as ToyZone.
Ivlyn, a holding company, controls, among others, Dis-Chem Pharmacies Limited.
Baby City is a specialist store supplying a wide array of products catering for moms-to-be, babies and toddlers. It operates various stores throughout the country.
ToyZone is a specialist toy store which stocks and supplies toys, games and activities-related products which cater for both children and adults. It operates numerous outlets in South Africa.
The Competition Commission recommended to the Tribunal the unconditional approval on account of the limited competitive overlap between the merger parties’ business activities and their relatively low combined market shares in the retail sale of baby and mother care products. The Commission’s investigation revealed that the merged entity will continue to face competition from numerous players active in the market for the supply of baby and mother care products.
Stock Exchange News Service (SENS)
Woolworths trading update
Extracts from trading update
Cape Town, W. Cape, SA (November 19, 2020) – Group sales for the first 20 weeks of the 2021 financial year increased by 3.5% compared to the 20 weeks ended 17 November 2019 and by -2.0% in constant currency terms. Trading conditions across the Group continued to be impacted by Covid-19. The changes in consumer behaviour which prevailed during the last quarter of the 2020 financial year have largely persisted, with store footfall, particularly in large shopping centres, CBD and airport locations, at significantly lower levels than the prior period. Recovery in Australia was hampered by the imposition of the stage 4 lockdown in the State of Victoria from 6 August to 28 October, resulting in unplanned store closures. Inventory levels remain well managed, assisted by the ongoing shift to online across all businesses, however the pandemic continues to disrupt supply chains both locally and globally, which we are monitoring and managing carefully. Group cash flow remains positive and net debt levels have continued to decline in both South Africa and Australia. Additionally, the various initiatives underway to ensure a more sustainable funding structure of our Australian entities are progressing well.
Southern Africa
Woolworths Fashion, Beauty and Home continued to be affected by the constrained environment. The winter clearance sale was much smaller than that of the prior period and, together with a significant drop in demand for formalwear, negatively impacted sales growth for the period, which declined by 14.6%. Comparable store sales were also 14.6% lower on a 1.9% price movement, while net space reduced by 0.5%. The launch of summer ranges, together with the earlier commencement of our Black Friday promotions, has resulted in positive sales growth in the last three weeks of the period.
Australia and New Zealand (‘ANZ’)
As mentioned above, the 12-week lockdown in the State of Victoria negatively impacted sales growth for the current period. This was partially offset by the ongoing shift to online, which continued its growth momentum. David Jones (‘DJ’) sales were also impacted by lower demand in formalwear, with other categories such as Beauty, Homeware and Appliances performing relatively better. Sales declined by 11.7% and by 14.6% in comparable stores. Excluding the Victorian stores which traded 76.0% down on the prior period on a total sales basis, the balance of the DJ business grew by 6.7%, assisted by the shift to online which grew by 65.0% and contributed 19.6% to total sales over the period. The Elizabeth Street store, which continued to see lower footfall and tourist activity, grew sales by 5.3%, noting that the prior period was disrupted by the refurbishment.
While Country Road Group (‘CRG’) was similarly impacted by the State of Victoria lockdown, this was mitigated by the shift to casualwear and online, particularly for the Country Road brand, which grew sales on the prior period. Sales declined by 10.9% and by 7.7% in comparable stores. Excluding CRG’s Victorian stores which traded 76.7% down on the prior period on a total sales basis, the balance of the CRG business grew by 6.5%, aided by online sales growth of 55.7%. Online contributed 34.7% of total sales over the 20-week period.
They Said It
"Life is full of challenges - and they aren't getting easier." - Yusuf Patel, owner of importer Boaonda SA (Pty) Ltd.
"Well, I'm learning to surf - one has to have a goal." - Handel Street marketing director Ashraf Ismail, 42, who transferred from the Krugersdorp head office to the Durban plant 2 years ago.
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 |
| 2020/10/03 |
R19.39 |
R21.40 |
R16.55 |
R2.43 |
| 2020/10/10 |
R19.47 |
R21.48 |
R16.46 |
R2.45 |
| 2020/10/17 |
R19.40 |
R21.37 |
R16.55 |
R2.47 |
| 2020/10/26 |
R19.28 |
R21.22 |
R16.31 |
R2.43 |
| 2020/10/31 |
R18.91 |
R21.02 |
R16.23 |
R2.42 |
| 2020/11/07 |
R18.50 |
R20.50 |
R15.58 |
R2.35 |
| 2020/11/14 |
R18.34 |
R20.45 |
R15.50 |
R2.34 |
| 2020/11/21 |
R18.28 |
R20.47 |
R15.42 |
R2.35 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2020/10/31 |
13.31 |
14.78 |
11.42 |
1.70 |
| 2020/11/07 |
13.34 |
14.79 |
11.24 |
1.70 |
| 2020/11/14 |
13.20 |
14.72 |
11.15 |
1.68 |
| 2020/11/21 |
13.15 |
14.72 |
11.09 |
1.69 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2020/10/31 |
877.57 |
975.10 |
752.96 |
112.50 |
| 2020/11/07 |
901.04 |
998.19 |
758.96 |
114.86 |
| 2020/11/14 |
899.50 |
1003.02 |
760.06 |
115.07 |
| 2020/11/21 |
902.24 |
1009.85 |
902.24 |
115.97 |
4. 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 |
| 2020/10/03 |
23.55 |
26.00 |
20.10 |
2.96 |
| 2020/10/10 |
23.85 |
26.31 |
20.16 |
3.01 |
| 2020/10/17 |
23.71 |
26.12 |
20.23 |
3.02 |
| 2020/10/26 |
23.96 |
26.38 |
20.28 |
3.02 |
| 2020/10/31 |
24.05 |
26.71 |
20.62 |
3.08 |
| 2020/11/07 |
24.40 |
27.03 |
20.55 |
3.10 |
| 2020/11/14 |
24.82 |
27.68 |
20.97 |
3.17 |
| 2020/11/21 |
24.92 |
27.90 |
21.02 |
3.20 |
5. 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 |
| 2020/10/03 |
423.96 |
468.06 |
361.90 |
53.29 |
81.44 |
| 2020/10/10 |
428.11 |
472.14 |
361.90 |
54.06 |
80.12 |
| 2020/10/17 |
424.13 |
467.25 |
361.90 |
54.04 |
81.34 |
| 2020/10/26 |
427.91 |
471.32 |
361.90 |
54.02 |
81.34 |
| 2020/10/31 |
431.64 |
468.64 |
361.90 |
54.07 |
81.35 |
| 2020/11/07 |
429.60 |
476.06 |
361.90 |
54.74 |
81.67 |
| 2020/11/14 |
428.29 |
477.58 |
361.90 |
54.79 |
81.67 |
| 2020/11/21 |
429.09 |
480.27 |
361.90 |
55.15 |
81.71 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (November 16, 2020) - The current average hide price increased by 7.5% to R2.36/kg from R2.20/kg green a week ago. The current price is 28.9% higher than the average price a month ago and is 47.2% higher than the average price a year ago. Industry players are receiving prices between R2.00/kg and R3.00/kg depending on the quality of the hide. The global hide market has seen an improvement in hide prices due to an improvement in the upholstery sector as people perform home improvements and home décor with a big push for leather upholstery. Current demand for hides is exceeding the supply which is adding support to prices. Expectations among industry members is that prices will continue to see an improvement in the coming months until reaching a more sustainable level where prices will then likely hold. 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 |
| 2020/09/11 |
0.67 |
27.48 |
43.57 |
| 2020/09/18 |
0.82 |
27.40 |
43.57 |
| 2020/09/25 |
1.36 |
28.57 |
43.57 |
| 2020/10/02 |
1.50 |
28.65 |
48.33 |
| 2020/10/09 |
1.83 |
28.28 |
48.86 |
| 2020/10/16 |
2.06 |
26.88 |
43.57 |
| 2020/10/23 |
2.16 |
30.39 |
48.33 |
Note: For previous prices, see HERE
23/11/1938: David Wilson, retired, formerly Barker Footwear production director, living in George.
23/11/1959: Bernice Kalakazinos, Toffee Clothing, St Francis Bay.
23/11/1970: Premilla Govender, Dynamic Engineering, Durban.
23/11/1966: Cornelio M Sunduza, Dadu Leathers Zimbabwe.
23/11/1938: Dave Wilson, retired, formerly Barker Footwear, Cape Town.
24/11/1955: Surie Mistry, Super Star Fashions, Vereeniging.
25/11/1952: Elaine Botha, Velle Shoppe, Heidelberg.
25/11/1972: Fiona Dale, AFD Industries, Pretoria.
25/11/1977: Wayne Hockly, Sondor Industries, Cape Town.
26/11/19??: Ed Duthie, retired, formerly Bata Zimbabwe.
26/11/1967: Preggie Govender, Dynamic Engineering, Durban.
26/11/1974: Salman Jonas, Fred Footwear, Port Elizabeth.
27/11/1965: Gerda Rappard, Bolton Footwear, Great Brak River.
27/11/1975: Dione Govender, Paragon Footwear, Pietermaritzburg.
27/11/1977: Paul Diedricks, agent, Cape Town.
In Memoriam this week
23/11/2018: Peter Shiffer (b. 17/10/1949), Flexmor [closed], 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:
Crazy Creatures Boutique, Mossel Bay, W. Cape, SA. Women's boutique.
Creative Leathergoods Manufacturers, Durban, KZN, SA. Leather goods manufacturer.
Classified Adverts
Seeking management position
Jonathan Colloty, former Director of Michelle Footwear, is currently seeking employment with a company that would require his expertise in Finance, Human Resources and Administration management. Jonathan has experience in the Footwear Industry for just under 8 years. His skills have a vast range, over implementation of production controls and overall operational management of numerous departments. Experience with management controls, implementation of strategies, government grants, cash flow management, dealing with IDC matters and was an active member of the board. Recommended by the Chairman of the Froggie Board as potential for a CEO position.
Please email Jonathan on jonty.ebs@gmail.com should you wish to arrange a meeting or require his skills.
Fos Investments Seeks Agents
Durban-based shoe wholesaler and distributor Fos Investments cc seeks sales representatives for the following areas:
- Durban central - South Coast - Transkei - Ixopo - Kokstad.
- Durban North - North Coast - KZN Midlands - Northern KZN - Zululand - Swaziland.
- Limpopo - North West Province - Mpumalaga - Lesotho.
- Gauteng - Central Johannesburg.
Representatives are required to have their own vehicles - preferably be experienced - and be aged between 30 and 45.
Please reply to Judy with a detailed CV.
Email: accounts@fosinvestments.co.za. Tel: 031 569 6530
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: Nov 30, 2020.
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