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S&V Weekly Newsletter Vol.7 No.17, April 26 2021

This Newsletter is sponsored by SAFLIA

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

 

Crunch wage talks next Monday

Durban, KZN, SA – A meeting between footwear manufacturing employers and unions to "review" the 7.5% wage increase slated for July 1 - negotiated before the pandemic as part of a multi-year wage agreement - will be held on May 3. A similar meeting between the SA Tanning Employers' Organisation (SATEO) and unions is also planned.
      National Bargaining Council general secretary/principal officer Gerald Naidoo said it would not be a wage negotiation. "The unions prefer calling the meeting a 'Footwear Sector Meeting', whereat the trade unions will consider an appeal made by SAFLIA to review the 7.5% wage increase that becomes effective from 1 July 2021," he wrote.
      "SATEO had also sent in a request to engage with the unions on the implementation of the 7.5% wage increase that also becomes due from 1 July.
      "The unions are yet to respond so no dates are set down for this engagement as yet."
      The first round of wage negotiations for the third sector in the Bargaining Council, the General Goods & Handbag Sector, will take place on May 10 and 11. That sector did not have a multi-year agreement.

 

Retail

Vellie Boutique: Aggressive marketing and good service have kept us growing

Sakkie Kriel of Vellie Boutique in Boksburg responded to our questions
Since the beginning of the year, have sales increased, declined, or remained much the same? Can you see any pattern?
Our sales have steadily increased this year. We have looked and introduced different ways to market our product to the different target markets.
From your website, I see you carry quite a lot of footwear other than vellies. Are vellies as popular as they've been in the last few years? Is there any sign of that tapering off, or are they still growing?
We carry a wide variety of mainly stitch down style leather  footwear. Although customers buy all types of footwear styles, the Vellie style of footwear is still very popular with our wide customer base. We still get customers reporting that it is their first pair of Vellies. Others comment that Vellies are the most comfortable shoes they ever owned. Some even say they grew up with them, but could not get them.
Are you having to do anything different to keep sales up?
We are very much service driven and believe it is even more important than the product we sell. We are very aggressive in our marketing strategy, and continuously try to stay ahead of the trends.  You have to keep people interested.
Is your customer base changing in any way? By race or age or gender or income group?
In short, no. We have always had a very wide customer base.
What is bigger for you - online sales or brick-and-mortar sales, and is that changing in any way?
Online sale have definitely increased since Covid, and have steadily increased to between 40% and 50% of total sales. We work very hard to make our online shopping experience as smooth and swift as possible. In achieving that you have to have a very hands on approach and a very good logistics partner. As sales suggest, a lot of people still come to our Boksburg shop from all over.
Do you have any expansion plans?
We are currently expanding at our Boksburg shop and have a new shop planned for Pretoria.
Are your sales affected in any way by Covid?
You could say that. There has definitely been a dip in sales during the early stages of the 'hard lockdown'. But through crafty sales strategies, we were able to continue doing sales. If Covid taught us anything, it is to be more creative with marketing.
Are you having any issues getting stock?
Lead times have definitely increased, as to be expected. Through careful planning and working with different factories, we have for the most part been able to keep our stock levels up.

 

A.P. Jones: Looking after the suppliers who looked after us

By Greg Bing, member
Fish Hoek, W. Cape, SA – Our financial year runs from March 01 to February 28, and if we do a comparison for year-on-year, we were exactly 51.7% down for 2020/21 on 2019/20. Although we are a department store catering for the entire family, because of the location of our store in Fish Hoek, we do quite a lot of trade with retired folk. They have all been in "proper" lockdown for a year, which hasn't helped our cause at all.
      I also think that people tend to forget that our economy is in a terrible state and it is going to be for some time. Government employees are the least affected by this as they are all still earning the same salary with increases year by year. It is the business owner who is suffering the most.
      To combat this crisis, we did four things. Firstly, we lost a few staff members during the year and did not replace them. This included my bookkeeper, who was on an independent contract. Guess who became the company's new bookkeeper! Secondly, our lease on a small store (118 sq metres), linking us to an arcade, lapsed and we did not renew it. This was a "saving" of close to R40k per month. My wife, in the business with me, and I, both did not draw salaries for the year and very gratefully lived off the TERS funds awarded to us by the UIF. And, fourthly, we watched our stock levels very carefully.
      We also changed our lifestyles: No DSTV, decreased policies on motor vehicles and life insurances, no eating out, etc., etc.
      My guess is that we will only recover from this position in about five years' time. It is going to be a long hard slog and we have prepared ourselves mentally for this. Our daughter is in business with us and she has done a brilliant job of creating a semi-online portfolio to the store (https://www.apjones.co.za/). It is uncanny how easily and confidently her age group goes about this.
      We were desperately short of cash to pay our creditors from end May 2020 up to and including December 2020. We were very well looked after by the majority of our suppliers and decided to toss out (or buy less from) those who got a bit snotty about stalled imbursements. Such is life.
      The independent retailers who plan well and adjust their short term goals will come out on top way before the rest of the pack.

 

 

Academy Outfitters: You can't get around unemployment

Port Elizabeth, E. Cape, SA – Port Elizabeth has been worse hit by unemployment than the other major cities, Academy Outfitters owner Jay Vallabh believes, with the decline in the motor industry in the city a major factor. Only Isuzu and Volkswagen remain.
      "We can't do anything about that," he said, "and there is a limit to what we can do to cope with. We've been buying down and we're very cautious about what we buy and how much we buy. We can't foresee what the rest of the year will bring. We just have to hang in there."

 

Wolman's Luggage: Advisories against travel to SA another blow

Johannesburg, Gauteng, SA – Travel goods retailers have been hit by a number of Covid-related factors, said Trini Gonsalves of Wolman's Luggage. With travel and hotels very restricted, luggage sales are poor, and with the swing to working from home, briefcase sales, too, have declined.
      The U.S. Government last week issued an advisory against travel to SA, citing 'crime, civil unrest, health and drought', and "overseas embargoes like that don't help", she said.
      "There's nothing much we can do when business is this tight. No-one's really buying, and it's a question of survival. But we soldier on - there's no other option."

 

Smart Shoes: Adapting to survive

Durban, KZN, SA – Trade has been very difficult and isn't expected to improve this year, said Cassim Shaikh, member of Smart Shoes, and he has adapted to cope.
      "You can see how badly unemployment has hit consumers, and how their priorities have had to change. Necessities come first, and when they buy footwear, they look for bargains."
      "One result is that we can't stock the international brands anymore - people want to buy Adidas or Nike for R250, and there's so much fake stock out there, controlled by foreigners, that they can. In any case, those brands don't want to supply independents."
      "It means that we only stock local brands, like Soviet and Grasshoppers, where there aren't any fakes."
      Another change has been to his buying: "We used to do pre-booking seasonally, but now we just buy when we need to, and most of the time the suppliers have stocks of the styles we want."
      He said the economy had been declining for the past 5 or 6 years, with Covid making it worse, "so we have to help consumers price wise. And if stock isn't moving, we let it go, even if it's below cost."
      He said retailers "need to stay focused" to survive, but he is also considering diversification. "Online hasn't worked for me so far," he said, "but I should really look into it more."

 

They Said It

"I am very pleased to share with you the fact that we are 100% up for the month of April so far. In fact , we were up for the last few days of March as well." - Cape Town retailer Greg Bing, of A.P. Jones. It may take you a few moments to remember that apparel retailers were closed for the whole of April last year, courtesy of SA's Level 1 lockdown.

 

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

 

26/04/1943: Juan Lichnovsky, retired back to Chile, formerly Futura Footwear (now Bata SA), Pinetown, KZN, SA.
26/04/1953: Rodney Hill, left the industry, formerly Prime Leathers, Pinetown, KZN, SA.
26/04/1964: Desmond Swartz, DS Agencies, Johannesburg, Gauteng, SA.
26/04/1965: Faizel Jeewa, Traford Footwear, Durban, KZN, SA.
26/04/1982: Keaton Quarmby, Falke Eurosocks, Cape Town, W. Cape, SA.
27/04/1944: Kelly Smith, agent.
27/04/1964: Francois Strydom, formerly Bolton Footwear, Great Brak River, Dick Whittington Shoes, Pietermaritzburg, SA.
27/04/1968: Wyatt Brodie, left the industry, formerly Polo SA, Johannesburg, Gauteng, SA.
29/04/1951: Elizabeth Loubser, retired, formerly Bolton Group, Great Brak River.
29/04/1980: Mark Fraser, Claw Boots International, Johannesburg, Gauteng, SA.
30/04/1946: Willi Angeloch, retired, formerly Nakara, Windhoek, Namibia.
30/04/1959: Gustav Franzsen, Vinaco, Cape Town, W. Cape, SA.
30/04/1964: Hayley Roberts (nee Caro), Retailability, Durban, KZN, SA.
30/04/1985: Gert Bosch, TST Agencies, Cape Town, W. Cape, SA.
01/05/1932: George Wilkens, emigrated, formerly Martin Johnson [closed], Pietermaritzburg, KZN, SA.
01/05/1961: Ronell Nieuwoudt, Suzi Q, Phalaborwa, Limpopo, SA.
01/05/1962: Tanya Vosloo, Greystone Trading 387, Cape Town, W. Cape, SA.
02/05/1956: Dave Robertson, emigrated, formerly Bushy Marketing, Pinetown, KZN, SA.

 

In Memoriam this week

26/04/2018: Alan Hornby (b. 16/08/1961), Topline Agencies, Johannesburg, Gauteng, SA.
30/04/2012: Ebrahim Aboo (b. 07/08/1948), MG Shoes [closed], 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
2021/03/06 R18.30 R21.26 R15.36 R2.36
2021/03/13 R17.87 R20.81 R14.94 R2.29
2021/03/20 R17.52 R20.38 R14.69 R2.25
2021/03/29 R17.67 R20.74 R15.01 R2.28
2021/04/05 R17.16 R20.19 R14.52 R2.21
2021/04/10 R17.38 R20.01 R14.60 R2.22
2021/04/17 R17.15 R19.80 R14.31 R2.19
2021/04/24 R17.26 R19.81 R14.27 R2.19

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
2021/03/20 13.16 15.30 11.03 1.69
2021/03/29 13.06 15.33 11.10 1.69
2021/04/05 13.03 15.33 11.03 1.68
2021/04/10 13.13 15.12 11.03 1.68
2021/04/17 12.98 14.98 10.83 1.66
2021/04/24 13.09 15.03 10.82 1.66


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
2021/03/20 936.19 1088.76 784.84 120.62
2021/03/29 924.77 1085.10 785.88  
2021/04/05 928.15 1092.12 785.75 119.66
2021/04/10 935.73 1077.61 786.22 119.97
2021/04/17 945.86 1092.19 789.44 121.06
2021/04/24 957.69 1098.87 791.67 121.88


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
2021/03/20 26.33 30.60 22.07 3.39
2021/03/29 25.99 30.50 22.09 3.36
2021/04/05 26.06 30.66 22.06 3.36
2021/04/10 26.47 30.48 22.24 3.39
2021/04/17 26.56 30.67 22.17 3.40
2021/04/24 27.01 30.99 22.33 3.43



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
2021/03/20 431.67 501.77 361.90 55.62 83.98
2021/03/29 425.86 499.76 361.90 55.13 84.11
2021/04/05 427.48 503.00 361.90 55.18 84.40
2021/04/10 430.72 496.02 361.90 55.22 84.39
2021/04/17 433.60 500.68 361.90 55.49 84.48
2021/04/24 437.80 502.33 361.90 55.71 84.48

 

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (April 22, 2021) - The current average hide price decreased by 5.9% to 8.37/kg from R8.89/kg a week ago. The current price is 39.3% higher than the average price a month ago and is 847.9% higher than the average price a year ago. Reports suggest that supplies are still tight but that the price run of the past few weeks might have eased somewhat. 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, 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
2021/02/05 3.86 31.41 45.71
2021/02/12 4.33 35.46 45.83
2021/02/19 4.29 34.49 50.00
2021/02/26 4.94 34.70 47.50
2021/03/05 5.67 38.33 51.67
2021/03/12 4.80 42.50 59.17
2021/03/19 4.99 35.74 52.86
2021/03/26 6.33 35.16 55.00
2021/04/02 6.50 31.83 49.00
2021/04/16 8.98 37.44 50.00
2021/04/22 8.37    
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:
Milk & Honey, Pretoria, Gauteng, SA. Women's boutique.
Millenium Footwear, Bulawayo, Zimbabwe. Men's, school and safety footwear manufacturer.

 

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Contact us

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

Next newsletter: May 3, 2021.

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

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