S&V Weekly Newsletter Vol.7 No.36, September 6 2021
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Bolton: Expecting to end year on par with 2019
Cape Town, W. Cape, SA – Bolton Footwear CEO Alan Fleetwood said on Friday he believed the company "could end up on par with 2019" by year end, indicating a significant turnaround, "and then all the restructuring and shrinking that we've had to do will make us look much prettier than we looked last year".
"Business is still not where it was 4 or 5 years ago," he said, but the factories were fully booked to year end "and I'm much more positive now than I was a year ago".
"I can see that we're writing better orders and there is a recovery of some of our brands that were suffering under the slipper brigade. Formal shoes, in particular, are picking up very nicely."
Of the decision reported last week to license out the Olympic International brand, he said he was open to discussing similar arrangements "with any of our other brands which were substantially imported - but not of our core brands".
"I do get the odd call, and there are some discussions, but nothing definite."
On the production side, Bolwear has rationalised its own manufacturing down to the Elsies River plant in Cape Town. All Southern Cape manufacturing, centred around Great Brak River and Oudtshoorn, is now outsourced, with the final changes last year.
"We make only Grasshoppers in the Southern Cape now," he said. "Through lessons learnt, we aren't going in the same direction in Elsies River. The Southern Cape model is suitable for high volumes with low variety, but if you try to increase the variety, you're looking for trouble."
In Elsies River, Bolwear "has spent the last 2 years setting up a production facility that can combine production methods", a project he said had been "successfully concluded".
That has meant combining the former Barker Footwear and Jordan Shoes factories into a single unit which makes not only multiple constructions, but also multiple price points, under operations executive/production manager Thomas Cawood.
One outcome was the decision by veteran Barker production head Selwyn van Aarde to retire after 42 years, all with Barker and latterly Bolton. He left the company on August 11. In a letter to staff, Fleetwood wrote: "This serves to confirm that Selwyn and the company have reached a mutually agreed separation...When these things happen, the rumour mills grind. For the protection of Selwyn’s dignity I must make it very clear that there is nothing sinister about this matter. Changes were made in the operational structures of the Elsies River plant which has led to this...We at Bolton Footwear consider Selwyn as a good friend."
He said a major problem was productivity, "mainly because of absenteeism, which is at unprecedented levels - mainly around Covid, but there is also a big problem with the transport situation in the Western Cape".
"If we had normal attendance, we wouldn't be behind on the order book, but as it is, we are." He said orders from the Southern Cape production units weren't affected.
When orders were down, he said staff had got used to working "at a certain comfort level, but inefficiently. When orders came in, they had forgotten how to work under pressure. But it's coming right. We haven't worked any short time this year, and there's no prospect of working any."
He said demand would force Bolton to look at outsourcing some constructions, and it was investigating working with factories in KZN.
Hide trader closed
Gaborone, Botswana – Hide and skin trading company S.M. Lurie (Pty) Ltd (Botswana) has ceased trading, MD Gerda Brooks has confirmed. Formerly a division of African Hide Trading in Port Elizabeth, she took it over when KAP Industrial Holdings sold AHT.
Currently resident in SA, she said she believed the market in Botswana was still down, and she didn't intend going back into the business.
Stock Exchange News Services (SENS)
Truworths final results June 2021
For the full report click here
Cape Town, W. Cape, SA (02 September 2021) – Revenue for the year went down 2.5% to R17.5 billion (R18.0 billion) whilst trading profit turned around 278.1% to R2.3 billion (loss of R1.3 billion). Operating profit shot up 2 861.8% to R3.0 billion (loss of R110 million). In addition, headline earnings per share grew 26.8% to 520.3 cents per share (410.4 cents per share).
South Africa: Truworths
The uncertainty around COVID-19 is expected to continue for many months ahead and this will be compounded by vaccine hesitancy and roll-out rates in South Africa, potential new variants of the virus emerging and the risk of further waves of infection. Following a slow start, South Africa’s vaccination programme is gaining momentum, with approximately 10% of the population fully vaccinated and 16% partially vaccinated to date.
The Group’s robust balance sheet and strong cash generation will provide resilience in the current environment of depressed consumer spending and weaker demand for fashion apparel.
Growth in the new financial period will be supported by continued recovery and growth in the debtors book, remodelling of emporium and large stores, new and expanded store retail concepts and brands, expansion of the e-commerce offering and investment in technology to offer customers a true omni-channel retail experience.
Truworths’ retail sales for the first nine weeks of the 2022 reporting period decreased by 5.3% compared to the first nine weeks of the prior corresponding period. Retail sales during this period were lower due to reduced markdown activity compared to the prior comparative period, slower consumer spending when stricter lockdown regulations were applied in response to the third wave of COVID-19 infections, and the civil unrest and rioting in KwaZuluNatal and Gauteng in July referred to above. Excluding sales of the stores directly affected by the civil unrest and riots for weeks three to nine from the first nine weeks of the 2022 reporting period as well as the prior corresponding period, retail sales decreased by 0.8%.
Trading space is planned to remain unchanged for the 2022 reporting period.
United Kingdom: Office
The Office turnaround plan aimed at restoring the profitability of the chain continues to gain traction despite being adversely impacted by COVID-19 limitations. The focus areas in the year ahead will continue to be on stock management, the closure of loss-making and marginal stores, remodelling of important high-profile stores, expanded e-commerce offering, investment in IT systems and in payment options for customers, and ongoing expense control.
High street footfall remains under pressure due to COVID-19, particularly in major city centres which are dependent on office workers and tourists. However, the rapid roll-out of the UK’s COVID-19 vaccine programme, with an estimated 64% of the population already having been vaccinated, is expected to reduce the risk of further lockdown restrictions and support the recovery of the retail sector.
Office’s retail sales for the first nine weeks of the 2022 reporting period increased by 3.2% in Sterling terms compared to the first nine weeks of the prior corresponding period.
Trading space is planned to decrease by approximately 12% for the 2022 reporting period.
Group: capital expenditure
Capital expenditure of R389 million (Truworths R332 million and Office GBP3 million) has been committed for the 2022 reporting period.
U.S. market: 'Q2 results from Shoe Carnival, Famous Footwear, DSW and Journeys signal industry-wide recovery'
For the full report click here
In the last two weeks, a handful of major footwear retailers have posted strong results for Q2.
Genesco, Caleres, Shoe Carnival and DSW parent Designer Brands reported strong sales, highlighting a general industrywide trend toward recovery from the pandemic. In many cases, this quarter reflected record-breaking numbers for retail across the board.
Amid the positive results, these footwear companies have been faced with supply chain issues related to factory slowdowns and shutdowns and port congestion. Still, they have managed to pull through successfully by leveraging relationships with suppliers and brands.
For some companies, this quarter even yielded record-breaking results.
In case you missed it!
Read S&V African Leather August issue online
S&V AFRICAN LEATHER MAGAZINE VOL15 NO8 AUGUST 2021
IN THIS ISSUE:
3 Sam Setter's Pills
- A new quip from Sam Setter in each issue.
03 Sustainability
- The Sustainable Leather Foundation, just a year old, has set itself a very ambitious target - lifting the global tanning industry, from grass roots to blue chip, to a sustainable model. And it's signing up members. MD Deborah Taylor explains.
07 An Eclectic View
- H. Proctor writes about Benford's Law. And if you understand him, you're very clever.
09 Sheep & Goat Skin Leathers
- Reducing water and chemical usage in tanneries by using inert polymer spheres in the drums, by Dr Clive Jackson-Moss of the ISTT.
12 Weights & Measures
- Compiled by the ISTT.
13 Trade Fairs & Academic Conferences
- The IULTCS to support leather students to virtually attend the XXXVI Congress in Ethiopia.
- Summary of information on the XXXVI IULTCS and the 5th World Leather Congress in November.
They Said It
"Have you read my Summer season price list? The fuel price and other exorbitant government controlled prices have forced a significant increase of consulting fees to be necessary." - Alastair MacGregor, retired former MD of Colin D. Bailey, Port Elizabeth, E. Cape, SA. I had asked him, rather timidly, whether he would mind digging around for some information of past members of the footwear industry in the city. Some of his 'findings' will appear in the September edition of S&V Footwear & Leather Goods Magazine.
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
06/09/1951: Abdur Rahim 'Raymie' Bava, A.R. Bava & Co., Polokwane, Limpopo, SA.
06/09/1957: Yusuf Bhabha, Shoe Boutique, Secunda, Mpumalanga, SA.
06/09/1953: Tony Stottelaar, Leather Systems SA, Port Elizabeth, E. Cape, SA.
07/09/1981: Mohamed A Lalla, Tysons Shoe & Clothing, Vereeniging, Gauteng, SA.
07/09/1972: Karl Flowers, Authenticae, Northampton, UK.
08/09/1954: Denis Tuchten, formerly Shoe Connection, Cape Town, W. Cape, SA.
08/09/1960: Paulo da Silva, emigrated, formerly Bambi Shoes [closed], Durban, KZN, SA.
08/09/1970: Kevin Naidu, Shenlea Agencies, Durban, KZN, SA.
09/09/1929: Bill Hoffman Erlings, Johannesburg, Gauteng, SA.
09/09/1943: Simon Liu, emigrated, formerly MCA Marketing [out of footwear], Midrand, Gauteng, SA.
09/09/1952: Abisha Tembo, formerly the DTI, now Beier Industries, Pinetown, KZN, SA.
09/09/1953: Fernando Santos, Bolton Footwear, Cape Town, W. Cape, SA.
11/09/1938: Roley Rogers, footwear agent, Johannesburg, Gauteng, SA.
12/09/1940: Tony Mason, retired, formerly Resolute Engineering [closed], Cape Town, W. Cape, SA.
12/09/19xx: Silvio Ceriani, BBF Safety Group, Pinetown, KZN, SA.
In Memoriam this week
08/09/2017: Roger Benjamin (b. 17/08/1945), agent, Port Elizabeth, E. Cape, SA.
09/09/2000: Erik Peter Rormose (b. 11/03/1934), Bulley’s Tannery/Coja Tannery/Silverton Tannery/KwaNdebele Tanning/Kembe Estates, Gauteng, SA.
09/09/2018: Errol Smith (b. 07/02/1946), ENS Machinery, Pietermaritzburg, KZN, SA.
11/09/1998: Harry Chafkin, Chafkin's Shoe Co, Benoni, Gauteng, SA.
11/09/2008: Robbie Chapman (b. 10/08/1957), Canterbury International SA [closed], Cape Town, W. Cape, SA.
12/09/2015: Ingo von Falkenhausen (b. 14/12/1931), Cheval Shoes, Pinetown, 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 ¥ |
| 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 |
| 2021/09/04 |
R17.00 |
R19.83 |
R14.31 |
R2.21 |
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 |
| 2021/09/04 |
13.04 |
15.21 |
10.97 |
1.70 |
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 |
| 2021/09/04 |
967.79 |
1129.03 |
814.44 |
126.20 |
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 |
| 2021/09/04 |
19.22 |
22.43 |
16.18 |
2.50 |
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 |
| 2021/09/04 |
430.04 |
501.69 |
361.90 |
56.07 |
86.05 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (02 September 2021) - The current average hide price increased by 0.06% to R9.81/kg from R9.80/kg a week ago. The current price is 1.51% higher than the average price a month ago and is 1508% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R8.62, 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:
Fine Fit Uniforms & Overalls, Johannesburg, Gauteng, SA. PPE distributor.
Fine Threads, Lilongwe, Malawi. Bridal specialist.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: September 13, 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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