Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries

S&V Weekly Newsletter Vol.7 No.08, Feb 22 2021

This Newsletter is sponsored by SAFLIA

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

 

Business

South Africa

Eagle Clothing: Chain orders will disrupt deliveries of local goods

Cape Town, W. Cape, SA – Changing consumer buying habits and lockdown regulations have dramatically affected trading, said Paulo da Silva, director of plus size specialist Eagle Clothing, which has 24 stores and a growing online presence.
      "This is a bit tongue-in-cheek, but I've found there's a new rule - if alcohol is available, our sales are good. If there isn't alcohol available, our sales are bad. I think what it boils down to is that the more restrictions that are put in place, including curfews and travel bans, it puts a fear into the back of the consumer's mind that things are not okay, but once the doors open again everyone senses a form of normality again.
      "For example, our October, November and December sales - up to the alcohol ban - were very good, and comparable to the year before. January was the worst I've seen in my 10 years with the company. February is a bit down, but okay."
      He said that it appeared consumers were now mainly buying during peak seasons - October to December, and April to June. "We used to have only 2 months a year which were really poor, but now we have to be prepared to 6 months of lower sales."
      Deliveries of imported goods have been affected by much higher shipping costs, but he also sees problems ahead for deliveries of locally made merchandise.
      "The big chains are gearing up for local procurement," he said, "and that means that mini-chains like us at the back of the queue. It's going to put pressure on everyone."

 

Bhamjee's: Ironic that Rand strengthens, but we can't risk buying more

Johannesburg, Gauteng, SA – After a December which offered "a glimmer of hope", the reintroduced Level 3 lockdown had led to a bleak January and a February which hasn't been much better, said Salma Muhammad of Bhamjee's Shoe Centre, regarded by many suppliers as a litmus test of independent retail.
"Social gatherings - weddings, functions, parties - are a huge part of our business," she said. "Until they're allowed again, I think the best we can hope for is to keep our doors open until it's all over.
"Our Rand has strengthened nicely, and it's a real irony that we're not in the position to order significant quantities of imports - but we can't not while we have high stock levels. It's difficult to know whether to buy, period. We certainly have to spend wisely."

 

 

Stock Exchange News Service (SENS)

Truworths: Interim results December 2020

Cape Town, W. Cape, SA (February 18, 2021) – Revenue for the interim period was 10.3% less at R9.9 billion (2019: R11.0 billion), gross profit decreased by 10.8% to R4.8 billion (2019: R5.4 billion) and trading profit lowered by 12% to R1.5 billion (2019: R1.8 billion). Profit attributable to equity holders declined to R1.3 billion (2019: R1.5 billion). In addition, headline earnings per share went down 7% to 339.3 cents per share (2019: 364.9 cents per share).

Interim dividend: The directors of the company have resolved to declare a gross cash dividend from retained earnings in respect of the 26-week period ended 27 December 2020 in the amount of 232 South African cents (2019: 249 South African cents) per ordinary share to shareholders reflected in the company's register on the record date, being Friday, 12 March 2021.

Company outlook
South Africa: Truworths

The second wave of the COVID-19 pandemic and the associated restrictions under the adjusted level 3 lockdown continues to adversely impact consumer spending and limit retail foot traffic to ensure their safety and limit possible exposure to infection. While it is critical for government to accelerate the COVID-19 vaccination programme to protect the South African population and enable the country to start the protracted process of rebuilding the economy, the efficacy of current vaccines against the mutated strain of the virus remains uncertain.
      Despite the challenges in the macro environment, Truworths remains a highly stable and long-term sustainable business with robust cash flows and a strong balance sheet. Medium-term growth prospects will be supported by the significant improvement in the quality of the debtors book since most of the adverse impact of the hard lockdown in April 2020 has rolled through the portfolio, together with the quality of new accounts and growth in shoppable accounts. The launch of several new concepts to expand the Group's offering, including a more value-focused chain to gain entry into the lower end of the South African fashion market, an increased focus on excellent value and in-demand product (increasing range of promotional items), as well as the strong growth in e-commerce will further support Truworths' medium term performance.
      Truworths' retail sales for the first six weeks of the second half of the 2021 reporting period decreased by 6.9% compared to the first six weeks of the prior corresponding period, mainly due to the subdued consumer spending environment in the wake of the second wave of infections and lockdown restrictions. If there are no further hard lockdowns in South Africa for the remainder of the financial year, management expects sales to increase in the second half of the current financial year relative to the second half of the prior financial year due to the impact of the hard lockdown in that period. Trading space is expected to remain unchanged for the 2021 financial year.

United Kingdom: Office
A third national lockdown imposed by the UK Government from 5 January 2021 is currently expected to continue until early March 2021, and will severely impact Office's sales performance for the third quarter of the 2021 financial year. Sales through Office's online platform are expected to partially compensate for the loss of in-store sales during this time when all non-essential retail activity is suspended. The UK retail environment is likely to remain challenging for the remainder of the financial year. The Office turnaround plan is ongoing and progress has been made in the following key areas: stock management through the trading (buying and planning) alignment initiative; the closure or renegotiation of lease terms of several loss-making stores; the completion of the head office redundancy programme; and general cost and capital expenditure control. The roll-out of the UK's COVID-19 vaccine programme, with an estimated 22% of the population having already received their first vaccine shot, will hopefully reduce the risk of further lockdown restrictions and support the reopening of the retail sector.
      Office's retail sales for the first six weeks of the second half of the 2021 reporting period decreased by 37.6% in Sterling compared to the first six weeks of the prior corresponding period. This is due to the lockdown restrictions and temporary store closures. Trading space is planned to decrease by approximately 22% for the 2021 financial year as Office continues to close marginal and unprofitable stores.

 

 

They Said It

"When you present to chains to promote a brand, and you can say to them 'and it's locally made', you see their eyes light up, because it ticks all sorts of boxes." - Agent Dionne Prinsloo, talking about the ongoing efforts of Kangol licensee Foothills Trading to localise production. So far, it's mostly clothing, but plans for local manufacture of footwear are far advanced.

Death Notice

Durban, KZN, SA – Bernhard Manock, founder of leather garment manufacturer Manock Naturals in 1961, died on February 02 of Covid, aged 87. An obituary will follow in S&V Footwear & Leather Goods later this week.

 

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

 

22/02/1967: Shabir Ahmed Moola, Moola’s Newcastle, KZN, SA.
22/02/1970: Ebrahim Akoon, Urban Legends, Bloemfontein, Free State, SA.
22/02/1982: Katherine Bischoff, Leatherband, Johannesburg, Gauteng, SA.
23/02/1949: Jeff Burland, retired, formerly United Fram/Wayne Plastics, Johannesburg, Gauteng, SA.
24/02/1954: Linda Gordon, Riversdalse Skoenwinkel, Riversdal, W. Cape, SA.
24/02/1973: M Taljaard, Taljaard Shoe Store, Germiston, Gauteng, SA.
26/02/1946: Brian Carmichael, MTL Trading, Cape Town, W. Cape, SA.
26/02/1959: Prakash Chiba, Falcarragy Trading, Durban, KZN, SA.
26/02/1961: Keith Lyons, Strayz, Pinetown, KZN, SA.
26/02/1981: Ndlela Mazibuko, BBF Safety Group, Pinetown, KZN, SA.
28/02/1945: Basil da Silva, Mendelson & Frost, Cape Town, W. Cape, SA.
28/02/1969: Dilesh Dajee, agent, Johannesburg, Gauteng, SA.

 

In Memoriam this week

27/02/2010: Jean Mee ‘Mick’ Lailvaux (b. 22/02/1919), Service Agencies (closed), Durban, KZN, SA.
27/02/2010: Amanda ‘Mandy’ Terry (b. 20/02/1969), Makro, Johannesburg, Gauteng, SA.
28/02/2016: Johnny Parboo (b. 21/10/1945), Labora Shoes, 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
2021/02/06 R17.88 R20.38 R14.84 R2.29
2021/02/13 R17.63 R20.14 R14.55 R2.25
2021/02/20 R17.79 R20.57 R14.68 R2.26

Note: For previous rates, see HERE

 


2. Botswana Pula (BWP)

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

 
  Euro € GBP £ US $ CNY ¥
2020/12/05 BWP13.36 BWP14.81 BWP11.02 BWP1.68
2020/12/12 BWP13.27 BWP14.50 BWP10.96 BWP1.67
2020/12/19 BWP13.21 BWP14.58 BWP10.78 BWP1.65
2020/12/26 BWP13.19 BWP14.58 BWP10.81 BWP1.65
2021/01/02 BWP13.17 BWP14.75 BWP10.79 BWP1.65
2021/01/09 BWP13.19 BWP14.63 BWP10.79 BWP1.66
2021/01/16 BWP13.29 BWP14.93 BWP10.99 BWP1.69
2021/01/23 BWP13.33 BWP14.99 BWP10.95 BWP1.69
2021/01/30 BWP13.37 BWP15.10 BWP11.02 BWP1.71
2021/02/06 BWP13.23 BWP15.08 BWP10.98 BWP1.69
2021/02/13 BWP13.30 BWP15.19 BWP10.97 BWP1.69
2021/02/20 BWP13.12 BWP15.17 BWP10.83 BWP1.66


3. Malawian Kwacha (MWK)

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

 
  Euro € GBP £ US $ CNY ¥
2020/12/05 MWK926.76 MWK1027.46 MWK764.52 MWK117.04
2020/12/12 MWK925.52 MWK1010.82 MWK764.06 MWK116.73
2020/12/19 MWK939.48 MWK1036.81 MWK766.84 MWK117.34
2020/12/26 MWK938.70 MWK1037.73 MWK769.62 MWK117.63
2021/01/02 MWK941.20 MWK1053.64 MWK770.57 MWK118.00
2021/01/09 MWK944.79 MWK1048.60 MWK772.99 MWK119.37
2021/01/16 MWK934.87 MWK1050.81 MWK773.46 MWK119.35
2021/01/23 MWK940.27 MWK1057.01 MWK772.53 MWK119.19
2021/01/30 MWK934.58 MWK1055.41 MWK770.00 MWK119.79
2021/02/06 MWK935.16 MWK1066.25 MWK776.26 MWK120.04
2021/02/13 MWK941.10 MWK1074.93 MWK776.44 MWK120.22
2021/02/20 MWK943.91 MWK1091.50 MWK778.83 MWK120.07


4. Zambian Kwacha (ZMW)

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

 
  Euro € GBP £ US $ CNY ¥
2020/12/05 ZMW25.60 ZMW28.38 ZMW21.12 ZMW3.23
2020/12/12 ZMW25.61 ZMW27.98 ZMW21.14 ZMW3.23
2020/12/19 ZMW25.94 ZMW28.63 ZMW21.18 ZMW3.24
2020/12/26 ZMW25.81 ZMW28.53 ZMW21.16 ZMW3.23
2021/01/02 ZMW25.85 ZMW28.94 ZMW21.17 ZMW3.24
2021/01/09 ZMW26.02 ZMW28.87 ZMW21.28 ZMW3.28
2021/01/16 ZMW25.84 ZMW29.04 ZMW21.38 ZMW3.29
2021/01/23 ZMW26.01 ZMW29.24 ZMW21.37 ZMW3.29
2021/01/30 ZMW26.07 ZMW29.44 ZMW21.48 ZMW3.34
2021/02/06 ZMW25.98 ZMW29.62 ZMW21.57 ZMW3.33
2021/02/13 ZMW26.27 ZMW30.01 ZMW21.67 ZMW3.35
2021/02/20 ZMW26.28 ZMW30.39 ZMW21.68 ZMW3.34



5. Zimbabwean Dollar (ZWL$)

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

 
  Euro € GBP £ US $ CNY ¥ Official US$
2020/12/05 ZWL$438.69 ZWL$486.36 ZWL$361.90 ZWL$55.40 ZWL$81.87
2020/12/12 ZWL$438.38 ZWL$478.79 ZWL$361.90 ZWL$55.29 ZWL$81.85
2020/12/19 ZWL$443.37 ZWL$489.30 ZWL$361.90 ZWL$55.37 ZWL$81.73
2020/12/26 ZWL$441.40 ZWL$487.97 ZWL$361.90 ZWL$55.31 ZWL$81.78
2021/01/02 ZWL$442.03 ZWL$494.84 ZWL$361.90 ZWL$55.88 ZWL$81.78
2021/01/09 ZWL$442.33 ZWL$490.92 ZWL$361.90 ZWL$55.88 ZWL$81.78
2021/01/16 ZWL$437.42 ZWL$491.67 ZWL$361.90 ZWL$55.84 ZWL$82.09
2021/01/23 ZWL$440.48 ZWL$495.16 ZWL$361.90 ZWL$55.83 ZWL$82.08
2021/01/30 ZWL$439.25 ZWL$496.03 ZWL$361.90 ZWL$56.30 ZWL$82.67
2021/02/06 ZWL$435.97 ZWL$497.09 ZWL$361.90 ZWL$55.96 ZWL$83.37
2021/02/13 ZWL$438.64 ZWL$501.01 ZWL$361.90 ZWL$56.03 ZWL$83.37
2021/02/20 ZWL$438.61 ZWL$507.18 ZWL$361.90 ZWL$55.79 ZWL$83.75

 

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (February 20, 2021) - The current average hide price increased by 16.1% to R4.80/kg from R4.14/kg a week ago. The current price is 19.2% higher than the average price a month ago and is 252.7% higher than the average price a year ago. Industry players are still reporting relatively low slaughter numbers and as such the amount of hides available on the market decreased. 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
2021/01/15 4.03 31.43 46.43
2021/01/22 4.16 30.00 47.00
2021/01/29 4.04 33.05 50.83
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:
Davison's Fashion House, Witbank, Mpumalanga, SA. Men's outfitter.
Daya & Sons, Durban, KZN, SA. Men's outfitter.

 


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: March 1, 2021.

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

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