S&V Weekly Newsletter Vol.7 No.25, June 21 2021
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Footwear Direct in liquidation
Johannesburg, Gauteng, SA – Dakotas distributor Footwear Direct went into voluntary liquidation at the end of May, we were finally able to confirm with member Stan Rabinowitz this morning.
He blamed the pandemic.
"It stopped people socialising, and party shoes for matric dances were a significant part of our business. The other problem was that consumers have been forced to buy down, and our product was branded."
Industrial Footwear
Carmin & Co.: Customers cash-strapped, stock in short supply, but signs of upturn
Johannesburg, Gauteng, SA – For corporate wear specialist Carmin & Co. member Elsa Carminati, Covid has meant that she works almost entirely from home, leaving day-to-day running of the business to her "small but efficient" staff.
Turnover has dropped, and there have been few new customers in over a year, but "luckily, we have many loyal clients that we have been dealing with since we started this business in 1988”.
She said the pandemic wasn't the only factor behind the drop in turnover. "The economy was in decline for several years before the pandemic. Also, the corporate gift side of the business has dropped more than the apparel side, because many of the small- and medium-sized companies that we deal with are cash strapped."
Uniforms, including footwear, are the company's biggest line, and security companies are an important part of that. "A lot of them have had contracts cancelled," she said, "and that reduces their purchases. The shortage of stock due to low production, which is a worldwide problem caused by the pandemic, has also greatly affected business”
Finding stock is more difficult. "I don't buy much locally-made stock, unfortunately, because of price. My biggest supplier's stock levels aren't what they used to be."
However, she said business started to pick up a few months ago. "This month has seen a slight drop in business which is a normal trend during the winter months, but we are confident that we should see a rise towards month end, when more and more people receive the vaccination and the country can start going back to normality.”
Sportswear
The Sweat Shop: No races, too few shoes and too many risks
Johannesburg, Gauteng, SA – The Sweat Shop's Jax Snyman was looking forward to a very healthy January and February this year, but they ended up way below expectations. "Traditionally, these are good months for the running shoe business," he said. "Lots of New Year resolutions, organised races, back-to-school purchases. But there weren't any organised races to speak of, not even park runs. We have time trials every Thursday at Wanderer's Running Club, which normally attract 350-odd people, but now we're happy if we get 120. We don't do much back-to-school, but even that small business diminished."
Even individual runners, training on their own or in small groups, have been running less. "We need guys to run 120 kilometres a week so that they wear out their shoes and we can sell them new ones," he said. "This year, so far, our sales have been down slightly in Rand terms, but quite a bit in unit terms."
He said the fairly steep increase in prices ran contrary to the exchange rate, "but the prices we see now were probably set in November last year. Most of the brands aren't very negotiable, but to be fair, most of them also carry the risk if the exchange rate goes the other way. Also, they're locked into an F.o.B. price in dollars, and what you read about our port means they're probably paying storage costs because of the inefficiency, so anything they make on the exchange rate is probably being lost somewhere else in the transaction. When it comes to prices, people prefer stability."
A bigger issue is the shortage of stock. "Runners are very brand loyal, and at the top end, they're loyal to an individual model within their preferred brand. Right now, however, the choices are very limited. When Nike presented their range to me this year, they put a cap on the value of the order that we could place. Why does a supplier do that? Other suppliers have told me there are supply constraints from factories in the East."
He said trail running had been harder hit in this respect than road running, because the nature of the sport made it less affected by Covid, leading to a worldwide boom in the sport.
"Right now, our stock of Asics trail running shoes is 35 pairs. That's probably more than Asics has in its warehouse! Brooks isn't huge in trail but when they got in a shipment last week, and we called customers to tell them, everyone took up their orders.
"The shortages are expected to ease in the second quarter next year, suppliers say. At the moment, the parent companies are asking themselves whether they feed the beast that's the U.S. market or do they send more shoes to South Africa. There's only one answer."
Covid is his other concern: "Gauteng is going crazy with Covid. A shop a few doors down from my office sells women's bespoke clothing - not a huge clientele, and they know their customers personally. They lost 3 to Covid last week. That focuses the mind a bit. 2 members of my staff are off today - do they come back without testing? Not with our client base. When we fit shoes we can spend 20 minutes with a customer. Our client liability doesn't look good, never mind our reputation. I'm in a high risk business."
Stock Exchange News Services (SENS)
Steinhoff Investment interim results March 2021
Stellenbosch, W. Cape, SA (June 18, 2021) – Revenue for the interim period increased to R36.5 billion (2020: R33.8 billion), gross profit rose to R13.2 billion (2020: R12.5 billion), operating profit turned around at R5.2 billion (2020: loss of R10.6 billion) and profit attributable to owners of Steinhoff Investments recovered to R2.6 billion (2020: loss of R13.3 billion). Furthermore, headline earnings per share from continuing operations improved to 4 823.63 cents per share (2020: headline loss of 23 996.32 cents per share).
Dividend declarations - preference shares: On 27 January 2021, the board declared a gross dividend of 292.43 cents per preference share. This dividend was paid on Monday 26 April 2021. The preference shares dividends are payable in the currency of South Africa and are subject to local dividend tax of 20%.
Dividend declarations - ordinary shares: In line with prior periods, no interim dividend has been declared on the ordinary shares.
Company outlook: The Pepkor Holdings Group's business model and market positioning have sustained performance since the onset of COVID-19 by responding effectively to changes in the operating environment and consumer behaviour, thereby entrenching its position in the discount and value sector. During this time Pepkor Holdings has made excellent progress in strengthening its balance sheet and liquidity which will support its investment in growth opportunities.
They Said It
"How are my retailers doing? Better than I am!" - Gale Rice, director of Courteney Boot, Bulawayo, Zimbabwe, in her contribution to the outdoor footwear feature coming out in S&V Footwear & Leather Goods later this week. She made some other very amusing observations as well. Don't miss it!
Directory and Calendar updates
The S&V Directory and the S&V Calendar are dynamic documents, undergoing ongoing constant updating. Readers are therefore advised to refer to them at least once a 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
21/06/1969: Du Toit Kruger, KKI, Oudtshoorn, W. Cape, SA.
22/06/1964: Collin Govender, Owen’s Press Knives, Durban, KZN, SA.
24/06/1956: Dhirendra Bhoola, Danny's Outfitters, Pretoria, Gauteng, SA.
24/06/1968: Meshi Sunker, Soviet Group, Johannesburg, Gauteng, SA.
24/06/1978: Ashveer Kallichurum, Shoe Component Supplies, KwaDukuza, KZN, SA.
25/06/1976: Scott Croney, agent, East London, E. Cape, SA.
25/06/1983: Sylvia Steyn, Fashion House Rules, Johannesburg, Gauteng, SA.
26/06/1935: Jurgen Wedekind, retired, formerly Bellstedt, Durban, KZN, SA.
26/06/1945: John ‘Zorb’ Caryer, retired, formerly Camdeboo Meat Processing, Graaff Reinet, E. Cape, SA.
26/06/1956: Beau Rynhoud, RR Chemicals, Edenvale, Gauteng, SA.
27/06/19??: Mpho Ramoshaba, the DTI, Pretoria, Gauteng, SA.
In Memoriam this week
21/06/1992: Jonathan Greenblatt, Richleigh Shoes [closed], Johannesburg, Gauteng, SA.
22/06/2010: Boris Levin (b. 03/07/1935), footwear agent, Johannesburg, Gauteng, SA.
23/06/2016: Benjamin ‘Buzz’ Burke (b. 22/08/1949), Dolphin Components, Shoe Buzz [both closed], Cape Town, W. Cape, SA.
23/06/2016: Billy Moodley (b. 31/08/1956), BM Components, Durban, KZN, SA.
24/06/1995: Anand Singh, Angel Footwear Manufacturers, Durban, KZN, SA.
25/06/2002: Gerald Haug (b. 28/01/1924), Bondseal [closed], Pinetown, KZN, SA.
27/06/2015: Dave Bromfield (b. 19/11/1946), Apeco, Pinetown, KZN, SA.
27/06/2019: Ebrahim 'Briggs' Mohamed (b. 29/04/1943), agent, Johannesburg, Gauteng, 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 ¥ |
| 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 |
| 2021/05/01 |
R17.43 |
R20.03 |
R14.49 |
R2.23 |
| 2021/05/08 |
R17.10 |
R19.67 |
R14.06 |
R2.18 |
| 2021/05/15 |
R17.16 |
R19.92 |
R14.13 |
R2.19 |
| 2021/05/22 |
R17.00 |
R19.75 |
R13.96 |
R2.16 |
| 2021/05/29 |
R16.79 |
R19.56 |
R13.77 |
R2.16 |
| 2021/06/05 |
R16.84 |
R19.49 |
R13.76 |
R2.15 |
| 2021/06/19 |
R17.03 |
R19.82 |
R14.36 |
R2.22 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 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 |
| 2021/05/01 |
12.98 |
14.92 |
10.80 |
1.66 |
| 2021/05/08 |
13.16 |
15.13 |
10.82 |
1.68 |
| 2021/05/15 |
13.04 |
15.14 |
10.74 |
1.66 |
| 2021/05/22 |
13.06 |
15.18 |
10.73 |
1.66 |
| 2021/05/29 |
12.97 |
15.10 |
10.63 |
1.67 |
| 2021/06/05 |
13.01 |
15.05 |
10.62 |
1.66 |
| 2021/06/19 |
12.82 |
14.92 |
10.81 |
1.67 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 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 |
| 2021/05/01 |
953.33 |
1095.68 |
793.00 |
122.47 |
| 2021/05/08 |
962.89 |
1107.41 |
791.61 |
123.08 |
| 2021/05/15 |
969.29 |
1125.06 |
798.15 |
123.99 |
| 2021/05/22 |
968.84 |
1125.67 |
795.46 |
123.62 |
| 2021/05/29 |
963.70 |
1122.37 |
790.24 |
124.09 |
| 2021/06/05 |
970.94 |
1129.95 |
798.14 |
124.80 |
| 2021/06/19 |
948.37 |
1103.68 |
799.43 |
123.88 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 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 |
| 2021/05/01 |
26.75 |
30.75 |
22.25 |
3.43 |
| 2021/05/08 |
27.29 |
31.39 |
22.44 |
3.48 |
| 2021/05/15 |
27.32 |
31.71 |
22.50 |
3.49 |
| 2021/05/22 |
27.44 |
31.88 |
22.53 |
3.50 |
| 2021/05/29 |
27.42 |
31.93 |
22.48 |
3.53 |
| 2021/06/05 |
27.51 |
32.02 |
22.61 |
3.53 |
| 2021/06/19 |
26.85 |
31.26 |
22.64 |
3.50 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
Official US$ |
| 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 |
| 2021/05/01 |
437.07 |
500.03 |
361.90 |
55.89 |
84.50 |
| 2021/05/08 |
440.20 |
506.27 |
361.90 |
56.26 |
84.52 |
| 2021/05/15 |
439.50 |
510.12 |
361.90 |
56.22 |
84.61 |
| 2021/05/22 |
440.78 |
512.13 |
361.90 |
56.24 |
84.64 |
| 2021/05/29 |
441.28 |
513.93 |
361.90 |
56.82 |
84.72 |
| 2021/06/05 |
440.25 |
512.35 |
361.90 |
56.59 |
84.76 |
| 2021/06/19 |
429.31 |
499.67 |
361.90 |
56.08 |
85.24 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (June 18, 2021) - The current average hide price increased by 2.6% to R8.34/kg from R8.12/kg a week ago. The current price is 6.6% higher than the average price a month ago and is 1087% higher than the average price a year ago. Market stakeholders are continuing to note tight supplies. 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 |
|
|
| 2021/04/29 |
8.98 |
40.96 |
62.00 |
| 2021/05/06 |
7.56 |
40.96 |
62.00 |
| 2021/05/24 |
7.82 |
40.83 |
61.67 |
| 2021/05/28 |
7.47 |
|
|
| 2021/06/14 |
8.34 |
40.83 |
61.67 |
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:
Famous Shoes, Pietermaritzburg, KZN, SA. Family footwear.
Monogramics, East London, E. Cape, SA. Embroidery specialists.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: June 28, 2021.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Our website www.svmag.co.za
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