S&V Weekly Newsletter Vol.7 No.35, August 30 2021
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Cold weather sales boost - for some
The cold spell should have boosted belated sales of winter merchandise, but unemployment muted demand for some retailers.
"All shop owners love a change of weather like this because it gives them the opportunity to move leftover winter stock," said National Clothing Retail Federation of SA executive director Michael Lawrence. "It also helps that in cold weather, people go to malls. Nonetheless, at this time of year retailers are very much focused on end of year activities."
In Kimberley, Northern Cape, men's and boys' outfitter Ebbie's Fashion House "definitely felt the benefit", director Shiraaz Mohamed said. "The colder it gets, the more business picks up," he said. "In addition, we had good variety to offer because we had carryover stock from last year and this year we freshened up our range. Sales have been good."
In another very cold part of the country, Free State, men's outfitter and family footwear retailer Fashion Fever, in Welkom, also said sales - including this morning - were doing well. But in Bethlehem, also in the Free State, Fana's Outfitters member Abdul Hajat said the cold spell "hadn't really" boosted sales.
And in Nigel, Gauteng, the 22-store women's outfitting chain Bergstan Outfitters saw no improvement, member Stanley Berger said. "It's all very well talking about an improvement in Sandton," he said, "but in the rest of the country there are too many unemployed people with too little money to see a pickup in sales. In any case, at this time of year people aren't looking for winter merchandise. Maybe in a couple of weeks, when temperatures increase, there'll be more sales."
NBCLI triples penalties for many categories of non-compliance
Durban, KZN, SA – The National Bargaining Council of the Leather Industry of SA (NBCLI) has tripled the penalties for non-compliance "not involving underpayment" by parties to collective agreements, and has made changes to the wording to clarify the scope of the penalties "and to align the penalties with the Labour Relations Act and the Basic Conditions of Employment Act", general secretary and principal officer Gerald Naidoo said last week.
This follows a meeting of all parties - described by one participant as "intense" - which included the SA Tanning Employers' Organisation (SATEO), the Southern African Footwear & Leather Industries Association (SAFLIA), the Association of SA Manufacturers of Luggage, Handbags & General Goods (ASAM), and unions NULAW and SACTWU.
There are 2 categories of penalties - the first for any breeches which aren't to do with remuneration, the second to cover underpayment.
There were no changes to the penalties for underpayment, but the penalties for other breeches have been changed as follows:
Table 1: Maximum permissible penalty not involving an underpayment
No previous failure to comply - R300 per employee or incident in respect of whom/which the failure to comply occurs i.e. daily, weekly, fortnightly, monthly or otherwise as the case may be.
A previous failure to comply in respect of the same provision - R600 per employee or incident in respect of whom/which the failure to comply occurs i.e. daily, weekly, fortnightly, monthly or otherwise as the case may be.
A previous failure to comply within the previous 12 months or two previous failures to comply in respect of the same provision within three years - R900 per employee or incident in respect of whom/which the failure to comply occurs i.e. daily, weekly, fortnightly, monthly or otherwise as the case may be.
Three previous failures to comply in respect of the same provision within three years - R1200 per employee or incident in respect of whom/which the failure to comply occurs i.e. daily, weekly, fortnightly, monthly or otherwise as the case may be.
Four previous failures to comply in respect of the same provision within three years - R1500 per employee or incident in respect of whom/which the failure to comply occurs i.e. daily, weekly, fortnightly, monthly or otherwise as the case may be.
The penalties which are unchanged are:
Table 2: Maximum permissible penalty involving an underpayment
No previous failure to comply - 25% of the amount due, including any interest owing on the amount at the date of the order.
A previous failure to comply in respect of the same provision - 50% of the amount due, including any interest owing on the amount at the date of the order.
A previous failure to comply within the previous 12 months or two previous failures to comply in respect of the same provision within three years - 75% of the amount due, including any interest owing on the amount at the date of the order.
Three previous failures to comply in respect of the same provision within three years - 100% of the amount due, including any interest owing on the amount at the date of the order.
Four previous failures to comply in respect of the same provision within three years - 200% of the amount due, including any interest owing on the amount at the date of the order.
Federer-backed shoemaker On reveals revenue surge in U.S. IPO filing
Aug 23 (Reuters) - On Holding AG, a shoe firm backed by Swiss tennis star Roger Federer, on Monday filed for an initial public offering in the United States and revealed its net sales had jumped 85% in the six months ended June 30.
The company was valued at nearly $2 billion after its last funding round, Reuters reported in April.
Federer had invested in On in 2019, according to the filing. It was not immediately known how much the Swiss tennis star has invested in the shoe firm.
The 20-times Grand Slam winner had also teamed up with the company earlier this year to develop the Roger Pro tennis shoe.
U.S. venture capital firm Stripes holds 12.4% of the company's ordinary shares, the filing showed.
On said it had not set the terms for its offering yet. Sources told Reuters in April that the company could seek a valuation of between $4 billion and $6 billion in its IPO.
For the six months ended June 30, net sales jumped to 315.5 million Swiss francs ($344.01 million) from 170.9 million Swiss francs a year earlier, the company said. It also reported a net income of 3.8 million Swiss francs, compared to a loss of 33.1 million Swiss francs a year earlier.
Running-shoe makers have seen sales spike in the COVID-19 pandemic as people turn to running, with gyms closed and team sport activities banned.
On was founded in 2010 in Zürich, Switzerland by Olivier Bernhard, David Allemann and Caspar Coppetti.
In case you missed it!
Read Footwear & Leather Goods August issue online
S&V Footwear & Leather Goods Magazine Vol87 No8 August 2021
IN THIS ISSUE:
03 Global Trade
- Covid blamed for 16% drop in world footwear production, writes SAFLIA's Jirka Vymĕtal.
04 This Month's Focus Sector: Local Leather Handbags
- Handbag makers turn to brands, boutiques and online sales as lockdowns wipe out traditional markets. Comments by:
- Fiona Borthwick, FSP Collection.
- Daniel Kurgan, Kurgan Kenani.
- Mandy Owen, Vermont Leather.
- Muhammad Rawat, Rawhide SA.
- Justine Schäfer, Cape Cobra.
- Jason Wilkins, Freestyle Genuine Handcrafted Leather.
14 Comment: Violence and Looting
The only way out is economic freedom, writes Chris Hattingh of the Free Market Foundation.
16 Sector Reports
- Fashion & Lifestyle: The Love Story - Fashion for the woman-in-the-street.
- Fashion & Lifestyle: Dickies - Shift in core products.
- Safety: More SA gumboot users should be weighing up PU benefits over cheaper PVC boots, says BBF Safety Group's Wayne Safety division.
- Safety: A podiatrist explains why women's safety footwear has to be designed differently to men's footwear.
- Sport: Olympic - Rebooted, again, but this time with completely new direction.
- Sport: Caterpy - No-tie shoelaces 'a game-changer for user and retailer'.
23 Sustainability
- From the BBC: Activist Greta Thunberg calls out climate impact of fashion brands..
24 Notice Board Obituary
- Ben Peters: He lived by a code which included the belief that we're all born equal.
They Said It
"I have to pass the mirror test in the morning." - EVA Industries director Brandon Geyser on business ethics (or the lack of them).
"I've got my laptop and I'm working under my duvet. I remember my days working in factories, and I'm glad I'm where I am at the moment." - SAFLIA director Jirka Vymetal this morning.
Death Notices
Johannesburg, Gauteng, SA - Brian MacDonald, footwear agent, died on 05 August.
Ladysmith, KZN, SA - Imraan Kharva, owner of MSW Clothing, t/a Americanos, died on 21 August.
Durban, KZN, SA - Mike Clark, former footwear machinery and component salesman, died yesterday.
We hope to have obituaries for these industry personalities in the next issue of S&V Footwear & Leather Goods.
SENS
Massmart interim results June 2021
For the full report click here
Johannesburg, Gauteng, SA (27 August 2021) – Revenue for the interim period increased by 6.2% to R37.6 billion (2020: R35.4 billion) and gross profit grew 6.7% to R7.7 billion (2020: R7.2 billion). Operating profit before interest came to R37.7 million (2020: operating loss of R97.2 million). Loss for the period attributable to owners of the parent lessened to R1.1 billion (2020: loss of R1.2 billion). Furthermore, headline loss per share from continuing operations narrowed to 166 cents per share (2020: headline loss of 382.1 cents per share).
Company outlook: Sales for the 7-week period post reporting date have been subdued. In addition to an increased national lockdown level which impacted commercial activity, a full restriction of Liquor sales during the month of July, stricter curfews and renewed limitations on trading conditions of the hospitality and restaurant sectors, have further impacted sales performance. In light of heightening levels of the third wave of Covid-19 infections in South Africa, consumers have remained reluctant to visit crowded spaces and, as we have seen before, shifted their spending towards essential items, as opposed to spending on durable items.
As mentioned, the civil unrest and looting have directly impacted 43 of our stores, with the majority of these stores still in the process of being re-opened. Sales in these stores were approximately R708.0 million lower compared to the same 7-week period in 2020.
Total sales, from continuing operations, for the 33 weeks to 15 August 2021 of R46.7 billion represents an increase of 4.9% (5.9% on a comparable store sales basis), slowing down from the 6.1% sales growth reported for the 26-week period. Excluding the impact of damaged stores, sales for the 33-week period increased by 5.8% from the same period in 2020 (6.9% on a comparable store sales basis). The slowdown in sales growth is mainly driven by the factors set out above.
Total sales, from discontinued operations, for the 33 weeks to 15 August 2021 of R4.6 billion represents a decrease of 15.2% (down 11.7% on a comparable store sales basis), a further deterioration of the 10.0% contraction reported for the 26-week period. Excluding the impact of damaged stores, sales for the 33-week period decreased by 10.3% from the same period in 2020 (decreased by 6.0% on a comparable store sales basis), mostly in line with the trend we have seen for this year so far.
Consequently, total Group sales for the 33-weeks to 15 August 2021 of R51.3 billion represents a sales increase of 2.7%, with a 4.1% increase in comparable store sales.
Woolies final results June 2021
For the full report click here
Cape Town, W. Cape, SA (26 August 2021) – Revenue for the year grew by 9.3% to R80.9 billion (2020:R74.1 billion), gross profit went up 14.2% to R28.9 billion (2020: R25.3 billion), operating profit shot up 42.4% to R6.7 billion (2020: R4.7 billion) and profit attributable to shareholders of the parent jumped to R4.2 billion (2020: R557 million). In addition, headline earnings per share jumped 212.5% to 374.4 cents per share (2020: 119.8 cents per share).
Company outlook: The trading outlook in both regions is uncertain and will be impacted by further Covid-19 waves and resulting lockdowns and restrictions, as well as the slow pace of vaccination in both regions. In Australia, current lockdowns are significantly curtailing trade in our brick-and-mortar stores, while in South Africa, we are in the midst of the third wave while the after-effects of recent civil unrest are also likely to be felt for some time.
Nonetheless, we have a stronger foundation and will continue to respond tactically to any immediate challenges, whilst remaining steadfast in the execution of our longer-term objectives.
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
01/09/1941: Stan Kotkin, formerly Footwear Trading (ceased trading), and now Calvin Klein distributor, Johannesburg, Gauteng, SA.
01/09/1942: Judy Vincent, Saddler Belts & Leathercraft, Durban, KZN, SA.
01/09/1971: Antonella Florio, Vanity, Ladybrand, Free State, SA.
02/09/1941: Saag Jonker, Ostrich Products SA/Saag Jonker Group, Oudtshoorn, W. Cape, SA.
02/09/1953: Carlos Costa, emigrated to Australia, former MD of Superior Footwear/Imponente Tanning, Harare, Zimbabwe.
02/09/1960: Arveen Boodhoo, Dick Whittington Shoes, Pietermaritzburg, KZN, SA.
02/09/1952: Derek Ellway, formerly Inspectashoe [closed], Cape Town, W. Cape, SA, now in the UK.
02/09/1963: Sunil Daya, Randy’s Agency, Port Elizabeth, E Cape, SA.
03/09/1953: Vic Jablowski, Protech V, Pinetown, KZN, SA.
03/09/1970: Michel Hasson, Topaz, Cape Town, W. Cape, SA.
04/09/1952: Julian Pledger, left the industry, formerly Faith Footwear [closed], Port Elizabeth, E Cape, SA.
04/09/1955: David Scott, exporter, Pinetown, KZN, SA.
04/09/1963: Peter Crouch, Crouch Footwear, Pietermaritzburg, KZN, SA.
04/09/1992: Sarah Hayze-Hill, Chillisource, Durban, KZN, SA.
05/09/1954: Abdul Samad, Bob’s Shoe Centre, Johannesburg, Gauteng, SA.
05/09/1989: Erlank van Zyl, Ostriland, Citrusdal, W. Cape, SA.
In Memoriam this week
30/08/1997: Neville Socher, Medicus agent.
30/08/2015: Willem Delft (b. 10/04/1944), Bobbie Leathers, Uganda.
01/09/2012: Mike Cromhout (b. 06/02/1947), agent, Cape Town, W. Cape, SA.
02/09/2018: Sid Finlayson (b. 07/01/1939), Bata Zimbabwe, Futura Footwear and Bolton Footwear, Mossel Bay, W. Cape, SA.
02/09/2020: Alan Jackson (b. 31/07/1928), retired, founder of Alan D. Jackson, Port Elizabeth, E. Cape, SA.
03/09/2005: Oliver Guibert (b. 23/12/?), Bata Zimbabwe, Gweru, Zimbabwe.
04/09/2012: Judi Moakes (b. 13/04/1960), in Northampton, formerly secretary, SLTC (SA Section).
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 ¥ |
| 2021/06/26 |
R16.88 |
R19.63 |
R14.14 |
R2.19 |
| 2021/07/03 |
R16.91 |
R19.70 |
R14.25 |
R2.20 |
| 2021/07/12 |
R17.04 |
R19.91 |
R14.35 |
R2.21 |
| 2021/07/17 |
R17.02 |
R19.85 |
R14.42 |
R2.22 |
| 2021/07/24 |
R17.48 |
R21.41 |
R14.85 |
R2.29 |
| 2021/07/31 |
R17.33 |
R20.30 |
R14.60 |
R2.26 |
| 2021/08/09 |
R17.33 |
R20.45 |
R14.76 |
R2.27 |
| 2021/08/14 |
R17.37 |
R20.42 |
R14.72 |
R2.27 |
| 2021/08/21 |
R17.88 |
R20.82 |
R15.28 |
R2.35 |
| 2021/08/28 |
R17.35 |
R20.24 |
R14.71 |
R2.27 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/06/26 |
12.97 |
15.09 |
10.87 |
1.68 |
| 2021/07/03 |
12.95 |
15.09 |
10.91 |
1.68 |
| 2021/07/12 |
12.96 |
15.15 |
10.92 |
1.68 |
| 2021/07/17 |
12.95 |
15.11 |
10.97 |
1.69 |
| 2021/07/24 |
13.06 |
15.25 |
11.09 |
1.71 |
| 2021/07/31 |
13.20 |
15.47 |
11.12 |
1.72 |
| 2021/08/09 |
12.99 |
15.33 |
11.06 |
1.70 |
| 2021/08/14 |
13.12 |
15.43 |
11.13 |
1.71 |
| 2021/08/21 |
13.25 |
15.42 |
11.32 |
1.74 |
| 2021/08/28 |
13.23 |
15.44 |
11.22 |
1.73 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/06/26 |
961.88 |
1118.55 |
805.90 |
124.84 |
| 2021/07/03 |
958.45 |
1116.77 |
807.73 |
124.79 |
| 2021/07/12 |
952.21 |
1112.73 |
802.19 |
123.93 |
| 2021/07/17 |
955.84 |
1115.17 |
809.54 |
124.94 |
| 2021/07/24 |
955.43 |
1115.52 |
811.65 |
125.23 |
| 2021/07/31 |
965.02 |
1130.54 |
813.06 |
125.83 |
| 2021/08/09 |
957.51 |
1129.86 |
815.31 |
125.70 |
| 2021/08/14 |
960.30 |
1129.20 |
814.20 |
125.70 |
| 2021/08/21 |
952.51 |
1109.03 |
814.07 |
125.21 |
| 2021/08/28 |
960.60 |
1120.84 |
814.43 |
125.84 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/06/26 |
27.04 |
31.46 |
22.66 |
3.51 |
| 2021/07/03 |
26.95 |
31.40 |
22.71 |
3.50 |
| 2021/07/12 |
26.89 |
31.42 |
22.65 |
3.49 |
| 2021/07/17 |
26.73 |
31.18 |
22.64 |
3.49 |
| 2021/07/24 |
24.77 |
28.92 |
21.04 |
3.24 |
| 2021/07/31 |
22.91 |
26.84 |
19.30 |
2.98 |
| 2021/08/09 |
22.63 |
26.70 |
19.27 |
2.97 |
| 2021/08/14 |
22.83 |
26.85 |
19.36 |
2.98 |
| 2021/08/21 |
22.20 |
25.85 |
18.97 |
2.91 |
| 2021/08/28 |
18.81 |
25.95 |
15.94 |
2.46 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
Official US$ |
| 2021/06/26 |
431.93 |
502.29 |
361.90 |
56.06 |
85.36 |
| 2021/07/03 |
429.42 |
500.36 |
361.90 |
55.91 |
85.42 |
| 2021/07/12 |
429.43 |
501.85 |
361.90 |
55.90 |
85.50 |
| 2021/07/17 |
427.41 |
498.50 |
361.90 |
55.85 |
85.50 |
| 2021/07/24 |
426.00 |
497.38 |
361.90 |
55.83 |
85.63 |
| 2021/07/31 |
429.54 |
503.21 |
361.90 |
56.00 |
85.64 |
| 2021/08/09 |
424.85 |
501.36 |
361.90 |
55.79 |
85.72 |
| 2021/08/14 |
426.81 |
501.91 |
361.90 |
55.87 |
85.74 |
| 2021/08/21 |
423.44 |
493.02 |
361.90 |
55.66 |
85.82 |
| 2021/08/28 |
426.85 |
498.05 |
361.90 |
55.92 |
85.90 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (26 August 2021) - The current average hide price increased by 1.04% to R9.80/kg from R9.70/kg a week ago. The current price is 2.12% higher than the average price a month ago and is 1619% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R8.12, Maximum price: R11.00. Please note, we have changed our methodology and price levels are not directly comparable to previous prices that we reported on. Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, 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 |
| 2021/06/24 |
8.31 |
|
|
| 2021/07/02 |
8.25 |
42.21 |
66.00 |
| 2021/07/09 |
9.53 |
46.39 |
64.00 |
| 2021/07/16 |
8.17 |
39.00 |
61.00 |
| 2021/07/23 |
8.44 |
43.33 |
67.50 |
| 2021/07/30 |
7.57 |
39.00 |
61.00 |
| 2021/08/06 |
9.60 |
39.63 |
64.00 |
| 2021/08/12 |
9.93 |
|
|
| 2021/08/23 |
|
41.40 |
64.00 |
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:
Feminique Boutique, Naboomspruit, Limpopo, SA. Women's boutique.
FG Uniforms, Cape Town, W. Cape, SA. Uniform supplier.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: September 6, 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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