S&V Weekly Newsletter Vol.6 No.52, Dec 28, 2020

This Newsletter is sponsored by SAFLIA

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S&V Weekly Newsletter will appear every Monday during the Festive Season. Readers are welcome to submit news during this period. We wish all readers a happy, prosperous and healthy New Year.

Business

Lesotho

EllenBee: December up, expecting January lockdown

By Brian Mulvaney, financial director. Men's and women's boutique, 1 store.
Maseru – 10% better than last year and better than planned for this year. Not expecting any sales in Jan due to expected lockdown. Keeping strategy confidential.

Malawi

Footwear Centre: Staying afloat in choppy seas

By Rafiq Hajat, chairman. Family footwear and leather goods. 2 stores.
Blantyre – December 2020 has not delivered the relief that was much anticipated after the trials and tribulations of the past 10 months in Malawi.
      Sales remain at approximately 40% lower than 2019 due, amongst other things, to the depreciation of the Malawi Kwacha by over 20% over the last 3 months, augmented by the increase on the price of fuel by a whopping 28% over the last month. All of which have contributed to reducing buying power locally.
      As a result of this grim scenario, priorities have shifted to purchasing essentials such as food, water, rents etc. Footwear falls way down on that list and it's reflected in falling volumes in turnover with movement mostly in budget lines.
      Significant players on the local footwear retail scene are downsizing their operations. Bata has recently closed down two of its high street shops in Blantyre and look to be doing the same elsewhere. Other old reputable businesses have actually closed down altogether.
      We've been around since 1969 and I'm pleased to say that we have managed to keep afloat through tight fiscal management and prudent procurement.
      We therefore hope to be still offering the widest variety of quality footwear and leather goods to the discerning Malawian customer for another 50 years hence.
      We wish you, all your readers and our South African suppliers a contemplative festive season and a transformative 2021.

Namibia

Langerhans Pharmacy: Better than expected

By Kim Dreyer-Tré, director. 1 store, comfort footwear specialist.
Windhoek – We finished renovating towards the end of 2019, and the building and expansion were unfortunately disruptive for staff and customers alike. So we are very grateful that there has been an overall growth relative to December 2019.
        Green Cross sales were down, as like most businesses they have experienced supply chain issues, and the unavailability and delay in summer styles have influenced sales. And school shoe sales were very depressed due to home schooling.
         Froggies sales are slightly better, but some styles had to be cancelled due to insufficient leather, which has also had a dampening effect. And orders for summer placed in July were only delivered at the end of November. It starts getting warm in Namibia towards the end of August already. So we had plenty of customers looking for new styles, which were not yet available.
         There has been a shift to more affordable lines, with customers more focused on their budgets.
         Belt sales are down, and we think people have been trying to make items last a little longer before dipping into their pockets for a new item.
         Overall, fortunately, it better than we expected.
        We have looked at margins on products, increased ranges, reviewed our layout, bumped up our marketing, extended our trading hours, and tried our best to keep staff motivated and positive. If someone came up with an idea, and it seemed practical, we have literally given it a go. Our team has worked very hard to be innovative, improve service, knowledge and delivery.
        We are eternally hopeful that it will be better than last January, but only time will tell.
 

African Leather Creations: Much the same as 2019

By Herbert Schier, member. Manufacturer and retailer.
Swakopmund – By comparison we had similar sales as 2019 and did expect the same, as our veldskoen is popular amongst locals and visitors.
      We always try to make our product affordable. Our retail prices were increased in August by about 5%.
      We had hoped that our Government would reduce VAT from 15% to 12%, but this did not happen.
      So for January all will stay the same. We hope sales will pick up later in the year.

South Africa

Oasis: A Christmas of smaller items

East London, E. Cape – Jay Dhaya, member of 1-store men's outfitter Dhaya Investments cc, t/a Oasis Outfitters, said it has so far been "a very different Christmas".
      "We've sold a lot more smaller items," he said, "like T-shirts, flip flops and shoes generally.
      "Specifically, we've done well with Polo T-shirts and Palladium shoes. Also, because it appears Pringle will no longer be available, people who normally buy a Pringle shirt have bought 2 or 3 more.
      "Suits, on the other hand, have been much slower. It's been more of a casual Christmas."
      He said Oasis didn't normally have New Year sales.
      He said had had bought "more cautiously" for winter. "A lot of the suppliers - shoes as well a clothes - have shown smaller winter ranges, "and we would prefer to buy smaller quantities at a time. There's been a trend among suppliers to try to sell to us via Zoom meetings, which really isn't ideal."
      However, he said Oasis itself would have to consider offering online sales.
      "It's impossible to predict what will happen, and that also depends on how people behave."

Madison's: Poor Black Friday leads to a good December

Bloemfontein, Free State – Gavin Frances, director of 7-store men's outfitter Valortrade 150 (Pty) Ltd, t/a Madison's and B&B Trading, said it has been "a much better Christmas" than last year.
      "Black Friday this year was poor, and I think it was the same for most retailers. We did about 60% of last year's Black Friday turnover. I think consumers just didn't want to go into crowded shops.
      "December, however, has been consistent from day 1."
      He said Madison's had bought very carefully, but in depth.
      "We were more focused, and we didn't take chances. What we bought, sold, and we had the stock so we didn't have to turn customers away."
      He said the business had sufficient stock for January. "We won't be able to rely on back-to-school sales for most of the month, because the schools are going back late, but our expectation is that overall January sales will be 10% to 15% better than January 2020.
      "Of course, things can change. Holidaymakers returning home may bring a surge in infections. But I believe the potential is there for a good month."

Parktown Stores: Stock shortages a big issue

Pretoria, Gauteng – Ziyaad Docrat, proprietor of online and 1 store family outfitter Parktown Stores, said overall sales have been down on last year, but with some better performing sectors.
      "Back-to-school is important for us, but this year it isn't what it should be because of the uncertainty.
      "Normal casual wear is doing quite well, probably because people are travelling less and have more to spend.
      "Weddings and other formal occasions were cancelled or postponed - there's a trickle of formal wear sales now."
      Outdoor wear is an important sector for Parktown in the May to August hunting season, which was affected by lockdown regulations. December sales of those products were probably presents, he said.
      He said stock shortages were a significant factor. "Most suppliers don't have stock, and many smaller retailers have run out of stock - or shut down. We're not importing at the moment - one shipment took a year from ordering to arrival, and it's chaotic. Suppliers are trying to source locally or from Lesotho.
      "These are very uncertain times."

Durban cobbler to close shop after 99 years

By Janine Moodley, The Post,  Dec 23, 2020
Durban, Gauteng – It is an end of an era for a Durban shoe repair shop that will close after 99 years of being in business.
      Natvai 'Bhikhoo' Harie, a third-generation owner of HD Kalidas & Co in the Durban CBD, said it was a tough decision to make but he believed it was the right time to retire.
      Harie, now 79, said the business was named after his grandfather and his grandfather's brother.
      His grandfather's name was Haribhai and his uncle Dhanjeebhai. Their surname was Kalidas. Harie used his father’s first name as his surname.
      "My grandfather came from India as a shoe repairman. He opened HD Kalidas Shoe Repairs in 1922 opposite the Grey Street Mosque."
      Harie's father, who was a teenager, then arrived from India and joined the business in 1946.
      Harie, the eldest of nine siblings, said he completed high school in 1961 and studied medicine for three years.
      "In my third year, when I was 25, my dad fell ill, and I had to leave varsity to run the business. I have been running it ever since."
      Harie, of Reservoir Hills, said after 70 years in Grey Street, the business relocated to Queen Street in February 1992. At that stage, the business started selling shoes.
      "It was a bigger shop, and we did family footwear and repairs. This worked out well for us."
      In 2008, due to his age, Harie decided to downsize and moved to another shop in the same building.
      "I decided to do shoe and bag repairs. I had become known as 'the specialist shop' and had built loyal customers. They had confidence in me, and they were from areas including northern Zululand, the south coast, and even Pietermaritzburg."
      He said the most expensive shoe he repaired was R12 000.
      The business operated from Monday to Saturday, and his wife, Usha, helped out when she could.
Harie said the CBD had changed and was now crowded, dangerous, dirty and unsafe.
      "Back in the day, we could walk in town even after 5pm, but over the past 20 years, it has deteriorated. There have been numerous robberies, especially in Queen Street. I was robbed four times at gunpoint. I was a bit fearful, but I had a passion for what I did, and it was too early to retire.
      "Now, having to leave my clients is definitely heartbreaking, but I have to do what's best for me and my family. Usha and I both decided that I would retire at 80 to spend time with our children and grandchildren."
      He said his three daughters were also concerned about his health and safety, especially at his age, and they wanted him to call it a day.
      The couple contracted Covid-19 in July, and the shop was closed for two months.
      "The time away from work made us realise that our health was of paramount importance."
      He said he thought of passing the business to his daughters, but they were busy with their careers and that to teach the trade someone new, would take years.
      The business will officially close in mid-January. - https://www.iol.co.za/thepost/community-news/durban-cobbler-to-close-shop-after-99-years

Trade Fairs

Covid continues to hit fairs

Istanbul, Turkey  – The 3rd LeShow Istanbul has been postponed from January 21-23 to June 10-12. The organisers said discussions with exhibitors and visitors indicated they believed "the existing global public health safety conditions and ongoing international travel bans do not allow a successful fair organisation and efficient business networking opportunities during January 2021".

Munich, Germany  – Sports and outdoor apparel and equipment ISPO Munich, which had been planned "for the first time as a hybrid event ... both in-person in Munich and online around the world", from January 31 to February 03, will now take place in a purely digital format, from February 01-05, according to a release on December 16.

They Said It

"I'm past retirement age. They kicked me out of the business." - Colin Frances, men's outfitting mini-chain Madison's, Bloemfontein, Free State, SA.

"Yay.....this week I know more people on your birthday list than 'In Memoriam' ... I had started to get worried." - Beverley Phillips, former Bata SA PA to company managers, Pinetown, KZN, SA.

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

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (December 21, 2020) - The current average hide price increased by 0.8% to R3.68/kg from R3.65/kg green a week ago. The current price is 54.2% higher than the average price a month ago and is 167.3% higher than the average price a year ago. Industry players are receiving prices between R4.00/kg and R5.00/kg depending on the quality of the hide. There is general strength in the market. It should be noted that the base was so low that the recovery in price is actually just getting back to a rational price as opposed to ‘high’ prices. The current demand for hides is exceeding supply, which is adding support to prices. Expectations among industry members are 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.

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