S&V Weekly Newsletter Vol.7 No.09, March 1 2021
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Business
Botswana
Vision Sports: Expanding, despite tough trading
Gaborone – Botswana's cumbersome lockdown regulations, which require retailers to register every customer entering their stores, coupled with economic conditions, have hurt retail significantly.
Sandeep Kumar, area manager of mini-chain Vision Sports, which sells a mix of technical and fashion sportswear, and men's clothing, said business in February was 30-35% down on February last year.
"People are buying," he said, "but not like before."
He said Vision had increased its promotions and marketing, but had not changed its buy, staying with the same brands.
Also, it will open its 11th store, probably in March, in Kanye.
"We hope business will improve in March," he said, "but there's been another increase in infections."
Namibia
The Shoe Box: Surviving until the upturn
Windhoek – With business still significantly down, "we're in survival mode", said Manny de Gouveia, who owns The Shoe Box in partnership with his wife, Ellen.
The Shoe Box is a medium price family footwear store, also selling belts, handbags, headwear and shoe care products, which they have been running since 1995.
It's also a destination store. "Most of our customers are regulars," he said.
"We're not really doing anything differently. The country as a whole is battling, and I think we'll have to wait for an upturn before we see much of an improvement in our business."
South Africa
Truworths to open new chains
Cape Town, W. Cape – Truworths is to open 2 new chains in the next few months, according to reports.
Both will start with around 20 stores, some stand-alone, others within existing Truworths group stores.
The one will be branded Primark, aimed at the lower end of the market. The original Primark is a UK value chain, but Truworths apparently registered the name here some time ago.
The other will be branded Fuel, and will be a "young, progressive, casual brand with a streetwear edge".
Edgars' move to Durban 'contrary to agreement' say former staff
Retailability's decision to relocate Edgars' head office in December from Johannesburg to Durban was contrary to a promise made to staff and has left about 60% Edgars' merchandise staff without employment, sources said on condition of anonymity.
In the case of the footwear department, it is understood that out of a team of 18 buyers and planners, 3 moved. "The rest have lives and responsibilities in Johannesburg. Relocating wasn't a realistic option," one source said.
"Retailability decided on 30 November to move Edgars' head office to KZN, 3 months after the takeover. Originally, the agreement was that such a move wouldn't happen for between 6 and 12 months."
"The reason they gave us was that the business hadn't turned around - which is unreasonable, I think, after it had been in business rescue for months.
"Head office staff could have contested the decision, but we decided instead to accept a package."
Retailability CEO Norman Drieselmann didn't respond to requests for comment.
Retailability has appointed Hayley Roberts and Mellissa Edwards as heads of footwear buying and planning respectively. Tania Deyzel and Yolande Dicks are buyer and planner respectively of women's private label footwear, Lesley Williamson and Claire Trollope are buyer and planner respectively of women's branded footwear, Dion Smith, Giulia Evelyn and Dhaveshandra Naidoo are buyer, planner and allocator respectively of men's private label footwear and Geoff Butcher is buyer and planner of men's branded footwear.
The Competition Tribunal last September approved, with employment conditions, Retailability's purchase of Edgars.
"The Tribunal has approved the transaction on condition that the merger parties shall not retrench any employees on account of the merger for a period of 3 years from the merger implementation date. In addition, the acquiring firm will give preference to any former Edcon employees should vacancies arise within 3 years of the merger implementation date."
"The Commission, in its assessment, was of the view that the transaction is unlikely to substantially prevent or lessen competition. In addition, it found that the merger will result in 5200 jobs being saved."
York City Tailors: People looking for bargains
Pretoria, Gauteng – Consumers were looking for bargains, said the manager of men's outfitter York City Tailors, who declined to give his name.
"It's a knock-on effect," he said. "People lose their jobs, it affects us. Likewise, if they get jobs, it affects us positively."
He said it was important to find more affordable merchandise, "but that's difficult, because prices keep going up."
He said he was new, but that he believed the Asiatic Bazaar, where the shop is, was still a viable trading area, though perhaps with a lower income clientele than before.
Germany
Birkenstock sold to LVMH
Neustadt – According to reports, Birkenstock Orthopädie GmbH & Co. KG has sold a majority share in its business to L. Catterton, a private equity form backed by French luxury goods group LVMH, for around €4bn.
The company’s new owners will pursue growth in China and India, and will expand its ecommerce and direct-to-consumer business, Birkenstock said in a statement. It said the company had a “record year” despite the coronavirus pandemic.
Stock Exchange News Service (SENS)
Woolworths interim results December 2020
Cape Town, W. Cape, SA (February 25, 2021) – Revenue for the interim period increased to R40.627 billion (2019: R38.442 billion), operating profit rose to R3.820 billion (2019: R3.279 billion), profit attributable to shareholders of the parent jumped to R2.762 billion (2019: R1.571 billion), while headline earnings per share grew to 261.1 cents per share (2019: 164.9 cents per share).
Dividend: No interim dividend was declared.
Company outlook: The trading environment is challenging and uncertain and is expected to remain so throughout the second half of the year. The economic outlook for South Africa is bleak, with the consumer under significant strain, and the possibility of further waves of infection and delays in the rollout of vaccines likely to further exacerbate the pressure on discretionary spend.
In Australia, economic fundamentals are stronger and more supportive of an earlier recovery in economic activity, but we are mindful that government initiatives, which have buoyed consumer spend, are coming to an end. As previously advised, we expect to conclude the sale of the Elizabeth Street property in the second half of the financial year, the proceeds of which will be used to settle debt and further strengthen our balance sheet.
Whilst we are pleased with some of the progress that we have made to date, we remain steadfastly focused on the other elements of our strategic priorities, including the repositioning of FBH, maintaining our leadership position in Food, our real estate optimisation efforts in David Jones and driving growth through digital, online and data.
The Board remains of the view that, while we have made significant progress on our capital plan, it is in the best interests of the Company for distributions to WHL shareholders to remain suspended, given the ongoing impact and uncertainty of Covid-19. The Company has therefore not declared an interim dividend in respect of this reporting period.
Competition Tribunal
Tribunal to hear Covid-19 excessive pricing case involving SAPS tender for bulk hand sanitisers
Pretoria, Gauteng, SA – A Covid-19 excessive pricing case, involving a South African Police Service (“SAPS”) tender for bulk hand sanitisers, is due to start in the Tribunal today.
BlueCollar Occupational Health (Pty) Ltd is accused by the Competition Commission of charging the SAPS excessive prices for bulk hand sanitisers during the period 21 March 2020 to 15 April 2020 following a tender issued by the SAPS.
The second respondent (“co-accused”) in the matter is Ateltico Investments (Pty) Ltd. The Commission alleges that Ateltico provided funding to BlueCollar for the procurement of hand sanitisers and was BlueCollar’s partner in relation to the SAPS tender.
The Commission wants both firms to be held jointly and severally liable to pay an administrative penalty. BlueCollar is involved in providing occupational health services, including performing medical screening of customers’ employees and staff. Ateltico provides investment solutions to customers.
The hearing is set down for Monday, 1 March – Wednesday, 3 March 2021. The Tribunal will hear evidence from witnesses called by the Commission as well as Blue Collar. Those wishing to follow the online proceedings are requested to contact the Tribunal’s Communications Officer to access the online hearing link. - GillianD@comptrib.co.za
They Said It
"My wife's going to open the pub for me just now. She's pretty strict like that." - Agent Ian Gordon on Friday afternoon. I think it's more likely Mrs Gordon is long suffering than strict.
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
01/03/1945: Chris Schutte, retired, former agent, Pretoria, Gauteng, SA.
02/03/1945: Sakkie van der Vyver, retired, formerly Adidas, Cape Town, W. Cape, SA.
02/03/1953: Garth Ewing, retired, formerly Garth Ewing Agencies, East London, E. Cape, SA.
04/03/1946: John Commins, retired, formerly Wayne Plastics, Johannesburg, Gauteng, SA.
04/03/1977: Regan Govender, Paragon Footwear, Pietermaritzburg, KZN, SA.
05/03/1937: Arnold Buckby, agent, Cape Town, W. Cape, SA.
05/03/1949: Tony Carnecky, retired, formerly Futura Footwear, Pinetown, KZN, SA.
05/03/1983: David Novos, Economic Shoes, Paarl, W. Cape, SA.
05/03/1986: Muhammed Omar, Fashion Square, Durban, KZN, SA.
06/03/1971: Sunil Bhagwandas, Ginger Bhagwandas, Durban, KZN, SA.
06/03/1976: Kevin Pillay, Alateens Bopsi Footwear, Durban, KZN, SA.
07/03/1960: Rafique Moosa, Cassim Moosa Bros. Trading, Pretoria, Gauteng, SA.
In Memoriam this week
01/03/2004: Sandra Faye Campbell (b. 09/06/1971), Dunn’s Stores, Johannesburg, Gauteng, SA.
02/03/1991: Edward Powell (b. 12/02/1967), agent, Johannesburg, Gauteng, SA.
03/03/2003: Gerry Elder (b. 03/08/1928), agent, Cape Town, W. Cape, SA.
03/03/2010: Ernest Alfred ‘Basie’ Heunis (b. 17/05/1923), Silverton Tannery [closed], Pretoria, Gauteng, SA.
06/03/1993: Brian Murphy, agent.
06/03/2011: Livio Sirilli (b. 06/04/1921), Sirilli Shoes, Pietermaritzburg, 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 |
| 2021/02/27 |
R18.25 |
R21.05 |
R15.12 |
R2.33 |
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 |
| 2021/02/06 |
13.23 |
15.08 |
10.98 |
1.69 |
| 2021/02/13 |
13.30 |
15.19 |
10.97 |
1.69 |
| 2021/02/20 |
13.12 |
15.17 |
10.83 |
1.66 |
| 2021/02/27 |
13.17 |
15.19 |
10.91 |
1.68 |
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 |
| 2021/02/06 |
935.16 |
1066.25 |
776.26 |
120.04 |
| 2021/02/13 |
941.10 |
1074.93 |
776.44 |
120.22 |
| 2021/02/20 |
943.91 |
1091.50 |
778.83 |
120.07 |
| 2021/02/27 |
943.34 |
1088.25 |
781.40 |
120.60 |
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 |
| 2021/02/06 |
25.98 |
29.62 |
21.57 |
3.33 |
| 2021/02/13 |
26.27 |
30.01 |
21.67 |
3.35 |
| 2021/02/20 |
26.28 |
30.39 |
21.68 |
3.34 |
| 2021/02/27 |
26.38 |
30.44 |
21.85 |
3.37 |
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 |
| 2021/02/06 |
435.97 |
497.09 |
361.90 |
55.96 |
83.37 |
| 2021/02/13 |
438.64 |
501.01 |
361.90 |
56.03 |
83.37 |
| 2021/02/20 |
438.61 |
507.18 |
361.90 |
55.79 |
83.75 |
| 2021/02/27 |
436.90 |
504.01 |
361.90 |
55.85 |
83.88 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (February 24, 2021) - The current average hide price increased by 2.2% to R4.91/kg from R4.8/kg a week ago. The current price is 18% higher than the average price a month ago and is 269.7% higher than the average price a year ago. Industry players are reporting that prices are holding firm on the back of reduced slaughter numbers and strong demand.. 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:
De Jagers, Worcester, W. Cape, SA. Family outfitter and schoolwear.
De Ville's, Mossel Bay, W. Cape, SA. Men's outfitter and schoolwear.
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 8, 2021.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
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