S&V Weekly Newsletter Vol.7 No.11, March 15 2021
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Business
South Africa
Big & Tall: Still some 'mad days', but quantities down
Randburg, Gauteng – "Some days we run around like mad people, others, we just mind the shop," was how Big & Tall Gents' Outfitters manager Hardus Labuschagne described business.
The 'mad' days are generally Saturdays, while during the rest of the week it's mostly one customer at a time, he said.
While the feet are still there, the volumes they buy are significantly down, he said. "We don't get the regulars coming in and spending R16 000 or R17 000. Now it's more R1 500 to R3 000 - working from home clothing, basically."
Footwear sales, likewise, are mostly sneakers. "When someone buys formal footwear now, it's either because he's starting a new job, or his shoes are so worn out he has to change them."
He said the business hasn't changed the type of merchandise it buys, but it has reduced quantities. "For example we used to buy 20 to 30 belts at a time. Now it's 15 to 20."
Cattell's: 'It's all about service'
Springs, Gauteng – "I can't complain," said Cattell's Industrial Footwear owner Rob Cattell. "January was on par with last year, February was slightly up. This month will be down on last year, because it was in March last year that the first lockdown started."
That good month last March is something of an anomaly, because safety footwear - which is all that Cattell's supplies - isn't PPE that has benefitted from the virus and the various lockdowns.
"I do well because I have the stock," he said, "and I always have the stock. It's all about service. Some other distributors haven't been able to get stock."
It can be a challenge: courtesy of the global shipping logjam, 450 pairs of Caterpillar boots which should have arrived last March have arrived now.
Cattell's sources from 4 suppliers and "90% of our business" is supplying resellers.
Competition Tribunal
PPE supplier accused of overcharging donates 49 400 face masks
Pretoria, Gauteng, SA (March 15, 2021) – A Cape Town medical equipment supplier, accused of charging the Western Cape Department of Health excessive prices for medical examination gloves, has supplied the Department, at no charge, with 49 400 surgical masks to the same value (at cost) as the estimated “excessive profits” it generated.
This arrangement forms part of the terms of a consent agreement between the Competition Commission and Supra Healthcare Cape Town (Pty) Ltd, which is accused of having charged the Department excessive prices for medical examination gloves around May-June 2020, during the Covid-19 pandemic.
Supra Healthcare does not admit that its conduct, as set out in the consent agreement, constitutes excessive pricing. However, in order to avoid protracted litigation and costs, the company has agreed to resolve the complaint on the terms set out in the consent agreement, which has been confirmed as an order of the Tribunal.
In terms of the consent agreement:
* Supra Healthcare will immediately desist from the conduct as described in the consent agreement; and
* It will develop, implement and monitor a competition law compliance programme incorporating corporate governance. This is designed to ensure that Supra Healthcare’s employees, management, directors and agents do not contravene the Competition Act (“the Act”) in future.
In addition, the company agreed with the Commission to provide the Department, at no charge, with 49 400 surgical masks, with a cost price value of R304 135 . The masks were delivered to the Department in December 2020, in light of the alarming increase in the number of Covid-19 cases in the Western Cape and the correlating increased need for personal protective equipment (“PPE”).
Background: In June 2020, the Commission received information relating to alleged inflated prices being charged by Supra Healthcare for medical examination gloves. The Department alleged that the prices being charged were higher than the regulatory pricing guideline provided by the National Treasury. Examination gloves fall under the category of medical and hygiene supplies in the Consumer Protection Regulations.
The Commission investigated Supra Healthcare and found the following:
* During the Covid-19 disaster, the Department attempted to procure PPE from various suppliers by way of an open invitation to quote;
* Supra Healthcare responded to the invitation on 15 May 2020 and the Department subsequently accepted the quote for 130 000 medium examination gloves and 130 000 large examination gloves; and
* The Commission’s analysis revealed that Supra Healthcare derived a mark-up and gross profit margin on the gloves at an “unreasonably high margin” compared to the benchmark applicable to the public procurement of PPE.
The Commission concluded that Supra Healthcare’s conduct amounts to excessive pricing in contravention of section 8(1)(a) of the Act read with regulation 4 of the Regulations. The excessive profit made by Supra Healthcare as a result of this conduct was calculated by the Commission as R304 135.
Fairs and conventions
SLTC Convention cancelled again
A statement by Björn Jönsson, President of the SLTC (SA Section)
At a committee meeting of the SLTC (SA Section) held on March 08, 2021, we took the sad decision to cancel the planned 2021 Convention.
We believe that nobody would want to spend all day in a room full of possible Corona virus transmitters even if we all wore masks. It would also be a much less sociable gathering than what we have become used to for the past 67 conventions.
We have very little faith that the global community will be open enough for people to travel to SA and within SA. To add to this is the slow rollout of vaccines. If it had been more rapid, perhaps it could have aided us to hold a safe convention, but alas, it was not to be.
Therefore we are now looking forward to May 2022 when we can all gather and enjoy the convention as we have done so many times before. The venue will be at the Green Leaves Country Lodge & Venue at Hartbeespoort in Gauteng.
The exact date has not yet been set, but will be announced by early 2022, when we can predict a safer timing of the event.
Please all stay safe.
SACU leather, leather products Zoom event on Friday
Pretoria, Gauteng, SA – The Southern African Customs Union (SACU) is inviting participation in a Zoom meeting entitled 'The SACU Leather and Leather Products Sectoral Roundtable' to take place on Friday, March 19, from 09.00 to 12.00.
In the invitation, SACU wrote: "The SACU member states have prioritised the agro-processing, textiles & clothing and pharmaceuticals & chemicals as initial sectors of focus in the development of regional value chains. In order to share the regional opportunities presented by these sectors, the SACU member states have agreed on convening sectoral roundtables including the private sector and other stakeholders to share experiences, identify the development potential, challenges and propose appropriate steps to be taken by the region in advancing its industrialisation agenda.
Contact Rauna Mumbuu at Rauna.Mumbuu@sacu.int for further information.
Stock Exchange News Service (SENS)
AVI: Interim results December 2020
Extracts from the SENS report. For the full report, go to: http://www.sharedata.co.za/v2/Scripts/News.aspx?c=AVI&sensid=379361
Johannesburg, Gauteng, SA (March 08, 2021) – Revenue for the interim period decreased by 0.1% to R7.131 billion (2019: R7.142 billion), gross profit decreased 4.8% to R2.826 billion (2019: 2.967 billion), profit attributable to owners of AVI fell to R977.8 million (2019: R1.349 billion), while headline earnings per share increased by 1.2% to 297.3 cents per share (2019: 293.8 cents per share).
Company outlook: South Africa’s second wave of COVID-19 infections commenced late in the semester and while it continues to have a material impact on Ciro’s sales, it did not result in material disruption to our operations. The impact of COVID-19 on second semester sales to date is limited but the potential for it to disrupt our operations and consumer demand persists. The long term economic damage wrought by the pandemic will exacerbate an already constrained trading environment, and many of our categories face the prospect of low, or even negative, growth rates in the absence of stimulus in the short-term.
Similarly, our retail brands should enjoy improved demand in the fourth quarter, although this will be tempered by the closure of under-performing Green Cross doors and the constrained environment.
Prices for many of the key raw materials used by AVI’s businesses rose during the first semester, partly due to a weaker Rand exchange rate. Our consistent hedging practice will provide some protection for the second semester but it may be necessary to increase selling prices in certain categories where cost pressures continue to erode gross profit margins. This may have a negative impact on demand in those categories.
Achieving profit growth across our diverse portfolio remains dependent on reasonable demand in a constrained macro environment. We continue to react quickly to market changes as we pursue the best balance of price, sales volumes and profit margin in each category, and this is underpinned by relevant innovation and a fastidious focus on product quality to ensure our brands offer value to our customers.
The Board remains confident that AVI is well equipped to adapt to a challenging economic environment and compete effectively with its unique brand portfolio. Acquisition opportunities with the potential to meet the Board’s criteria will continue to be evaluated.
They Said It
"If the Government and Covid don't get you, Transnet will." - Hotter SA's Bruce Wilson, grumbling about trying to get his stock out of the harbour.
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
15/03/1965: Neil Solomons, Bolton Footwear, Cape Town.
15/03/1972: Vanyo Mangaliso, Sun Goddess, Johannesburg.
15/03/1973: Jacky Hay, Little Slipper Co., Port Elizabeth.
15/03/1974: Tim Pittaway, Ostrich Emporium, Port Elizabeth.
16/03/1961: Doc Motala, Crown Footwear, Pinetown.
16/03/1965: Rod Bloom, Barksole Shoe & Bag Repairs, Cape Town.
16/03/1979: Matthew Boltman, Noo Shoes, Pretoria.
16/03/1987: Pankaj Mistry, Superstar Fashions, Vereeniging.
18/03/1948: Stan Rabinowitz, Footwear Direct, Johannesburg.
18/03/1980: Rory Ramsay, Feetfirst Distribution, Durban.
19/03/1959: Deon van Rensburg, Wayne Plastics, Krugersdorp.
19/03/1972: Morné Pienaar, Memories, Bloemfontein.
19/03/1972: Faieza Akoon, Urban Legends, Bloemfontein.
20/03/1982: Ashley Kisten Pillay, Topline Manufacturers, Durban.
21/03/1970: Shuhui Liu, Chang Tong Trading, Johannesburg.
21/03/1971: Jane Moodley, Michelle Footwear, Durban.
In Memoriam this week
17/03/1995: Kees Pulles, Futura Footwear, Loskop.
16/03/2008: Tilly Amery, FISA, Durban.
21/03/2019: John Drier, United-Fram, Johannesburg.
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 |
2021/03/06 |
R18.30 |
R21.26 |
R15.36 |
R2.36 |
2021/03/13 |
R17.87 |
R20.81 |
R14.94 |
R2.29 |
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 |
2021/03/06 |
13.08 |
15.20 |
10.98 |
1.69 |
2021/03/13 |
13.13 |
15.29 |
10.98 |
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 |
2021/03/06 |
930.18 |
1080.40 |
780.90 |
120.19 |
2021/03/13 |
932.59 |
1086.14 |
780.18 |
119.87 |
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 |
2021/03/06 |
26.12 |
30.34 |
21.93 |
3.37 |
2021/03/13 |
26.22 |
30.54 |
21.93 |
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 |
2021/03/06 |
431.07 |
500.70 |
361.90 |
55.70 |
83.88 |
2021/03/13 |
432.59 |
503.82 |
361.90 |
55.60 |
83.98 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (March 10, 2021) - The current average hide price increased by 3.5% to R5.69/kg from R5.50/kg a week ago. The current price is 37.4% higher than the average price a month ago and is 333% higher than the average price a year ago. Industry players are still reporting relatively low slaughter numbers combined with strong demand. This is providing price support. 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:
Centurion Health Shoes, Centurion, Gauteng, SA. Comfort footwear retailer.
Menz Klub, Mbabane, Eswatini. 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 22, 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
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