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S&V Weekly Newsletter Vol.7 No.05, Feb 1, 2021

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

 

Business

Botswana

Kopano/Majita: Government dissuaded from another lockdown - for now

Gaborone – The business community managed to stave off a lockdown which the Botswana Government had planned to implement from today (February 01), said Zaf Khan, director of men's outfitter Kopano Stores and PPE/work wear distributor Majita.
      "Retail was actually picking up nicely," he said. "December trading was quite good.
      "But the second wave has hit hard, and the government's proposed reaction was for another lockdown. The first one hammered us badly, so Business Botswana, representing all businesses, which has 1 seat on the council overseeing the reaction to the virus, persuaded government to try other interventions first.
      "We'll just have to see what the situation is by the end of February."

 

Malawi

Bhimji Shoppings: Planning to close

Blantyre – MD Kanti Dassani said he planned to close the business soon. Aged 71, he said it would be very difficult to sell, and he has no children in the business.
      Bhimji Shoppings is a general dealer which includes men's and women's formal and casual branded footwear in its product mix.

 

South Africa

ZaaZaa Shoes: The rise of the lesser brands

Laudium, Gauteng – Member Mohamed Abdoola said business was the worst it had been in the company's 13-year existence.
      "You can't blame it all on Covid," he said. "This decline started at the beginning of 2019."
      Aside from lower margins, Zaa Zaa has switched its buy to lower-priced brands offering the same look, and it prefers to buy from suppliers with open stock. On the school shoe side, it is offering its own branded shoes.
      "People love brands," he said, "but they prefer to buy a lesser brand for R299 than a top brand for R599. It means they have half their money for other goods."
      He said business had become a balancing act between reducing margins without eating into capital.
      "No weddings, parties, limited people going to office blocks has had a huge impact too. For that matter people are not going out.
      "Last year May, June and July we had record sales on slippers because people were at home, but school shoe sales have plummeted due to alternate days of schooling. Wear and tear of school shoes is less.
      "For me the saddest moment was when some of my suppliers stopped giving credit. The whole system revolves around Credit Guarantee. So basically they can make you or break you. Suppliers have no say in the matter, they just follow what Credit Guarantee says.
      "10 year relationships with companies gone because your credit rating is down. The last six month was a true test for me, but I survived, and I am grateful to those suppliers who supported us through this difficult period. It's people like that who keep you positive.
      "The best lesson for me: BUY WHAT YOU NEED. Don’t over commit."

 

 

Stock Exchange News Service (SENS)

AVI: Trading statement and update

Shortened because of the number of SENS reports this week. For the full AVI report, go to:
http://www.sharedata.co.za/v2/Scripts/News.aspx?c=AVI&sensid=376563
Johannesburg, Gauteng, SA (January 25, 2021) – Demand for our snacking and beverage brands normalised from the peaks during the hard lock-down period as consumers returned to more normal spending patterns. Sales of fragrance and beauty products improved during the semester but have not yet recovered to pre COVID-19 levels. Our retail brands’ sales recovered as shoppers increasingly returned to malls and high- streets through the period. Our ongoing efforts to keep staff safe and comply with the government’s lockdown regulations ensured continuity of operations and minimised losses of production and sales.
      Group revenue for the semester decreased by 0,1% over the same period in the prior year. Growth in our food and beverage categories was partially offset by the continued impact of COVID-19 on sales volumes in the fashion businesses and the Ciro out-of-home coffee solutions business. Revenue in the fashion businesses was 90% of that achieved in the first semester of last year.
      It is expected that AVI will release its full results for the six months ended 31 December 2020 on or about 8 March 2021. The information above has not been reviewed and reported on by the Group’s external auditors.

 

Woolworths: Trading update

Shortened because of the number of SENS reports this week. For the full Woolworths report, go to:
http://www.sharedata.co.za/v2/Scripts/News.aspx?c=WHL&sensid=376491
Cape Town, W. Cape, SA (January 25, 2021) – Group sales for the 26 weeks ended 27 December 2020 increased by 5.3% compared to the 26 weeks ended 29 December 2019 and declined by 0.5% in constant currency terms. This reflects improved trading momentum across all businesses over the final six weeks of the reporting period versus the 20-week update published on the Stock Exchange News Service (‘SENS’) on 19 November 2020. Trading conditions across the Group continued to be impacted by Covid-19, with significantly reduced store footfall, particularly in larger shopping centres and CBD locations. Considered actions to stimulate trade, strengthen online capabilities, manage inventory levels and execute property sales, have resulted in positive cash flows and a continued reduction in net debt levels in both South Africa and Australia.
Southern Africa Woolworths Fashion, Beauty and Home (‘FBH’) continues to be affected by the constrained environment, a significant decrease in Black Friday spend across the sector, and the reduction in formalwear trade. Sales declined by 11.2% over the period, with comparable store sales 11.0% lower on a 2.4% price movement. Online sales grew by 118.8%, contributing 4.0% to South African sales. Net space reduced by 1.9%, which is in line with the focus on improving store operating efficiency.

Australia and New Zealand In Australia, while the 12-week lockdown in the State of Victoria negatively impacted sales for the half, the easing of Covid-19 restrictions, together with the extended JobKeeper relief, our successful Black Friday and Cyber Monday campaigns, and further growth in our online sales, contributed to an improved performance in the last six weeks of the reporting period. David Jones (‘DJ’) sales over the 26-week period declined by 8.8% and by 10.5% in comparable stores. Excluding Victorian stores, which traded significantly down on the prior period due to the extended lockdown in the State, the balance of the DJ business, including online, grew by 5.9%. Online sales increased by 55.5%, contributing 17.7% to total sales over the half. Country Road Group (‘CRG’) delivered strong sales growth of 6.7% in the last six weeks of the period, underpinned by new product ranges, particularly in the Country Road business. Sales over the half declined by 5.2% and by 2.4% in comparable stores, negatively impacted by the lockdown in Victoria. Excluding Victorian stores, the balance of the CRG business, including online, grew by 8.2%. Online sales increased by 52.5%, and contributed 31.6% to total sales for the period.

 

Death notices

Johannesburg, Gauteng, SA – Manie Booysen, former MD of Seton SA, Nigel, Gauteng, died on Saturday. Former Seton marketing director Colin Gerrans told S&V: "He was the best manager I ever worked with, and all he came into contact with had great respect for him."

 

They Said It

"Procrastinate tomorrow." - A motto composed in the early 70s by former Apeco MD Lionel Astill. "I tried to live by it, and I asked my staff to try to adopt it," he said last week, while I was putting together his retirement article, which will be out tomorrow in the [late, dammit] January issue of S&V Footwear & Leather Goods. The motto combines Lionel's attitude towards business and his fabulous command of language.

 

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

 

01/02/1934: Con Barnard, Stanhope Boot & Shoe, Pinetown, KZN, SA.
01/02/19??: Elaine Smith, the DTI, Pretoria, Gauteng, SA.
01/02/1969: Noeline Kemp, Knots, Bloemfontein, Free State, SA.
02/02/1931: Gordon Singh, retired, formerly Monique Shoes, Pietermaritzburg, KZN, SA.
02/02/1941: George Geyser, Dancewell, Durban, ZN, SA.
02/02/1946: Chris Schroeder, retired, formerly PMC Group, Pinetown, KZN, SA.
02/02/1965: Rod Oliveira, Rodrigo Shoes, Durban, KZN, SA.
03/02/1963: Vusumzi Mabuto, NULAW, Port Elizabeth, E. Cape, SA.
03/02/1965: Grant Daniel, retired, formerly Mendelson Frost, Johannesburg, Gauteng, SA.
04/02/1947: David Buckingham, retired, formerly Royal Adhesives, Pinetown, KZN, SA.
06/02/1964: Wouter Joubert, TFG Apparel Supply Co, Cape Town, W. Cape, SA.
06/02/1971: Carel Pretorius, Pep, Cape Town, W. Cape, SA.

 

In Memoriam this week

02/02/2018: Sam Foster, retired, formerly Barker Footwear, Cape Town, W. Cape, SA.
03/02/1977: Ismail Adam Moosajee (b. 28/08/1927), Seltex, Johannesburg, Gauteng, SA.
07/02/2020: Dave Moss (b. 10/06/1954), Sneakers International, Durban, KZN, SA.

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.

 

Exchange rates

1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ CNY ¥
2020/12/05 R18.42 R20.42 R15.20 R2.32
2020/12/12 R18.34 R20.03 R15.14 R2.31
2020/12/19 R17.81 R19.65 R14.53 R2.22
2020/12/26 R17.80 R19.68 R14.59 R2.23
2021/01/02 R17.95 R20.08 R14.68 R2.24
2021/01/09 R18.69 R20.74 R15.29 R2.36
2021/01/16 R18.39 R20.68 R15.22 R2.34
2021/01/23 R18.42 R20.71 R15.14 R2.33
2021/01/30 R18.40 R20.78 R15.16 R2.35

Note: For previous rates, see HERE

 


2. Botswana Pula (BWP)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
2020/12/05 13.36 14.81 11.02 1.68
2020/12/12 13.27 14.50 10.96 1.67
2020/12/19 13.21 14.58 10.78 1.65
2020/12/26 13.19 14.58 10.81 1.65
2021/01/02 13.17 14.75 10.79 1.65
2021/01/09 13.19 14.63 10.79 1.66
2021/01/16 13.29 14.93 10.99 1.69
2021/01/23 13.33 14.99 10.95 1.69
2021/01/30 13.37 15.10 11.02 1.71


3. Malawian Kwacha (MWK)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
2020/12/05 926.76 1027.46 764.52 117.04
2020/12/12 925.52 1010.82 764.06 116.73
2020/12/19 939.48 1036.81 766.84 117.34
2020/12/26 938.70 1037.73 769.62 117.63
2021/01/02 941.20 1053.64 770.57 118.00
2021/01/09 944.79 1048.60 772.99 119.37
2021/01/16 934.87 1050.81 773.46 119.35
2021/01/23 940.27 1057.01 772.53 119.19
2021/01/30 934.58 1055.41 770.00 119.79


4. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
2020/12/05 25.60 28.38 21.12 3.23
2020/12/12 25.61 27.98 21.14 3.23
2020/12/19 25.94 28.63 21.18 3.24
2020/12/26 25.81 28.53 21.16 3.23
2021/01/02 25.85 28.94 21.17 3.24
2021/01/09 26.02 28.87 21.28 3.28
2021/01/16 25.84 29.04 21.38 3.29
2021/01/23 26.01 29.24 21.37 3.29
2021/01/30 26.07 29.44 21.48 3.34



5. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥ Official US$
2020/12/05 438.69 486.36 361.90 55.40 81.87
2020/12/12 438.38 478.79 361.90 55.29 81.85
2020/12/19 443.37 489.30 361.90 55.37 81.73
2020/12/26 441.40 487.97 361.90 55.31 81.78
2021/01/02 442.03 494.84 361.90 55.88 81.78
2021/01/09 442.33 490.92 361.90 55.88 81.78
2021/01/16 437.42 491.67 361.90 55.84 82.09
2021/01/23 440.48 495.16 361.90 55.83 82.08
2021/01/30 439.25 496.03 361.90 56.30 82.67

 

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (January 25, 2021) - The average local hide price increased 3.9% to R4.03/kg from last week. This price is 1.2% lower month-on-month and 185.0% higher year-on-year. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Abrie Rautenbach, head Absa agribusiness, Marlene Louw, senior agricultural economist, and Paige Bowen, agricultural economist, Absa group.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
2020/11/06 2.36 26.00 44.00
2020/11/13 2.38 23.59 40.00
2020/11/20 2.69 35.00 50.00
2020/11/27 3.08 36.00 49.00
2020/12/04 3.65 34.03 49.00
2020/12/11 3.68 33.21 50.83
2020/12/18 3.93 32.59 51.67
2021/12/25 4.08 34.39 51.67
2021/01/01 3.93 34.03 54.00
2021/01/08 3.88 31.43 46.43
Note: For previous prices, see HERE
 

  

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:
Danny's Outfitters, Pretoria, Gauteng, SA. Men's outfitter.
DanRich Footwear Manufacturers, Norton, Zimbabwe. Men's footwear manufacturer.

 


Classified Adverts




Design department manager seeks post

Devrajah (Teddy) Moodley, who had 31 years' experience with Michelle Footwear and was design department manager, followed by 2 year with Caprini Footwear as technical manager, seeks employment. He is prepared to relocate outside of Durban if required.       A full CV, including references from both companies, is available. Please reply to 083 280 6915, moodleyteddy8@gmail.com

 




Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: Feb 8, 2021.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za

 

 

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