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S&V Weekly Newsletter Vol.8 No.06, February 7 2022

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

 

Monthly retail sales reports

S&V Newsletter would like to partner with a representative group of retailers in southern and eastern Africa, from independents and mini-chains to major chains, covering all categories of footwear, belts, handbags, travel goods and related products (comfort, fashion and lifestyle, repairers, safety, school wear, sport), to present a monthly picture of retail sales.
      On Friday I emailed around 50 retailers with the following questions: 1. How did January 2022 compare with January 2021 in terms of turnover? 2. What factors affected January 2022 turnover? 3. Which brands did well for you? 4. Which categories of footwear, handbags, belts, and/or travel goods did well for you? 5. Within those categories, which price points were most successful/important? 6. What is your forecast for February 2022?
      Only 3 retailers responded, and a further 2 contacted me to say they would not respond.
      The response would have been affected by me only sending out the questionnaire on Friday. From the reaction of the chain which declined to respond, some retailers may feel some of the information would be too sensitive to disclose.
      To be useful to all retailers and the whole supply chain, as many retailers as possible should take part. If you don't want to answer all the questions, answer what you're comfortable with. If there are other points you'd like to raise, please do so.
      This publication is about and for you. It should also in large part be by you.

The 3 retailers who did respond were:

 

Friedman & Cohen: Cautiously optimistic as customers return to stores

Grant Goodwin, operations director, Friedman & Cohen, department store, Cape Town, W. Cape, SA.
1. How did January 2022 compare with January 2021 in terms of turnover? In January we traded to plan with a reasonable sales growth.

2. What factors affected January 2022 turnover? The relaxing of travel restrictions  helped  as we had a  increase in holiday makers in the first 2 weeks.

3. Which brands did well for you? Butterfly and Savoy shoes.

4. Which categories of footwear, handbags, belts, and/or travel goods did well for you? Travel bags and school bags both had decent sales growth. Ladies casual comfort shoes did reasonably well.

5. Within those categories, which price points were most successful/important? The entry level travel goods brands performed better than the higher end.

6. What is your forecast for February 2022? With the relaxing Covid protocols, we are cautiously optimistic, as customers seem to be more comfortable about frequenting the stores.

 

Eagle Clothing: Much better - challenges going forward, but expect it to balance out

Paulo da Silva, director and men's and footwear buyer, Johannesburg, Gauteng, SA. Clothing City (Pty) Ltd trades as Eagle Clothing and Clothing City Plus, and has 30 stores nationally
1. How did January 2022 compare with January 2021 in terms of turnover? January was up big time by comparison with January 2021.

2. What factors affected January 2022 turnover? For consumers, life has got back to near normal. It did, however, follow a December which was a bit flat line. I think consumers definitely took the opportunity to spend money on holidays, family and paying off some debt.

3. Which brands did well for you? All our stock is under our own brand.

4. Which categories of footwear, handbags, belts, and/or travel goods did well for you? Ladies' has been a bit of a struggle since the start of Covid. All categories of men's have done well. The female consumer is the first to tread lightly in uncertain times...

5. Within those categories, which price points were most successful/important? In men's, R200-R500 is where you want to be in clothing. In ladies', R200-R300.

6. What is your forecast for February 2022? So far so good this month. In late summer period the weather has been all over the show, but i do predict it will be more positive. This year will be very interesting in terms of product procurement and price increases in China and in shipping, and with a weak Rand on top of it. It's not the year for high margins. I forecast this year to be rather challenging up to the end of September and then in high summer I expect things will balance out.

 

Levinger's Dryclean & Shoe Clinic

Yadhir Mooloo, MD, Levinger's Dryclean & Shoe Clinic, Johannesburg, Gauteng, SA. National chain. As Levinger's repairs shoes rather than sells them, his questions were tailored to his business.
1. How did January 2022 compare with January 2021 in terms of turnover? January 2022 figures were up 11% compared to January 2021. Not major, however, better.

2. What factors affected January 2022 turnover? Corporates are still not fully back. Sandton CBD office staff have yet to return in full force. Compared to 2019, we have a long way to go.

3. Which of your services did well for you? The repair sector is currently doing well. Shoe repairs/cobbling, clothing alterations & dyeing of leather/clothes.

4. What is your forecast for February 2022? February is generally the worst trading month of the year. People are still paying back the credit cards from the festive season as well as licking their wounds from school/university fees.

 

 

The sneaker debate

This extract from World Footwear, which lends urgency to the campaign for SA footwear manufacturers to make sneakers.

Sports footwear trend will grow by 50% in the next decade

Jan 27, 2022 – The sports footwear business continues to thrive. By 2030, the global athletic footwear industry should generate 165.00 billion US dollars, which will reflect an increase of 50.4%, as compared to revenue of 109.70 billion US dollars in 2020.
      The projection can be found in the Athletic Footwear Market Research report, conducted by Allied Market Research. The demand for sneakers will increase until 2030, mainly due to the generalization of the practice of sport in everyday life, as well as the democratization of its use in formal contexts. Running sneakers should exhibit the greatest development in coming years, as compared to other categories of sneakers, which will also increase but on a smaller scale.

 

Let's provide the spark to revive this sector

By Brian Zyster, Tanielz Leather Products
Cape Town, W. Cape, SA – I am sure that there is much to debate around what used to be called athleisure footwear meant for leisure use.
        So we are not talking HiTech products but casual wear around the braai.
        I was fortunate enough to design the locally produced products for the Adidas brand as well as being invited by one of the vice presidents to their research and development centre in Munich, Germany.
        I was also responsible for the development of the locally produced training shoes worn by our armed forces in conjunction with the SABS and produced in Cape Town.
        It is not true that the entire industry has been mothballed. There are still a lot of interested parties around willing and able to resuscitate the product.
        I believe that this type of product can stimulate employment and add to the GDP. It's not going to be an overnight development but in due course become a force to be reckoned with.
        Again it is the local major retailers willing to make some sort of commitment to anyone willing to give it a shot. I for one will give my assistance to develop and train interested parties for free. I owe it to the industry that gave me so much fun travelling all around the world. The technical skills and willpower is very much around.
        Let's hope the government will take an interest in this if they are serious in reducing the unemployment rate.
 

 

 

Stock Exchange News Services (SENS)

Long4Life - posting of circular and notice of GM

Long4life includes Sportsmans Warehouse, Outdoor Warehouse, Shelflife and Performance Brands
Johannesburg, Gauteng, SA (Mon 31 Jan 2022, 9:22) – Shareholders are referred to the joint firm intention announcement published by Long4Life and OMPE Bidco on SENS on 20 December 2021 regarding OMPE Bidco’s firm intention to make an offer, to be implemented by way of a scheme of arrangement in accordance with section 114 of the Companies Act, to acquire all of the issued ordinary Shares in the capital of Long4Life, save for the Treasury Shares, at R6.20 per Share (subject to any potential adjustments as outlined in paragraphs 5.6 to 5.8 of the Circular).

Posting of circular: Shareholders are advised that the Circular containing, inter alia, further details of the Scheme and a notice of general meeting to be held for purposes of, inter alia, considering and, if deemed fit, passing the special resolution required to approve the Scheme was posted to Shareholders today, Monday, 31 January 2022.

Notice convening the general meeting: Notice is hereby given that a meeting of the Long4Life Shareholders will be held at 09h00 on Monday, 28 February 2022 at 7th Floor, Rosebank Towers, 13 –15 Biermann Avenue, Rosebank, Johannesburg, as well as virtually via a remote interactive electronic platform, for the purpose of considering, and, if deemed fit, passing, with or without modification, the Resolutions set out in the notice convening the General Meeting.
      Although Shareholders are allowed to attend, participate in and vote at the General Meeting, Shareholders are encouraged to make use of the electronic platform and proxies for purposes of attending, participating in and voting at the General Meeting due to COVID-19.
      The Circular is available in English only. Copies of the Circular may be obtained during normal business hours from the registered office of Long4Life at 7th Floor, Rosebank Towers, 13 –15 Biermann Avenue, Rosebank, Johannesburg and on the website of Long4Life at https://www.long4life.co.za/ from the date of posting of the Circular up to and including the Operative Date.

 

Pepkor - acquisition of interest in Avenida

Avenida is a ‘one stop shop’ for home, apparel, footwear and cellular to the average Brazilian family.
Cape Town, W. Cape, SA (Thu 3 Feb 2022, 7:34) – Pepkor announced the conclusion of a transaction in terms of which Pepkor, through an indirectly wholly-owned subsidiary, acquired an effective shareholding of approximately 87% in the Brazilian-based retailer Grupo Avenida S.A. from Kinea Private Equity and the founding Caseli family. The Caseli family will retain the remaining stake in the business with the two Caseli brothers, Christian and Rodrigo, staying on as Director and CEO respectively. The Transaction will be implemented by 4 February 2022 by way of an acquisition of shares from the Sellers and a simultaneous subscription for new shares in Avenida for a total cash consideration representing less than 4% of Pepkor’s market capitalisation.

Overview of Avenida: Avenida is a Brazilian value apparel retail business established by the Caseli family and has operated successfully for more than 42 years in the low end of the retail market. The business has a diversified product mix across two brands, Lojas Avenida and Giovanna, and a footprint of 130 stores with a leading presence in the Midwest and Northern regions of Brazil. Avenida operates a variety of sizes and locations with a presence in both large cities and small towns. It is a ‘one stop shop’ for home, apparel, footwear and cellular to the average Brazilian family.
      Brazil has a highly fragmented apparel retail market with only 14% of the market formalised. With approximately 85% of the population being in the lower and middle income bracket, it provides potential for Avenida to exponentially increase its store base and revenue into more traditional and rural geographies.
      Avenida achieved preliminary turnover of BRL 773 million (ZAR 2.2 billion) for the financial year ended 31 December 2021, with double digit growth compared to the pre-covid year of 2019.
A strong strategic partner for Pepkor: With a track record of having acquired and developed successful discount and value retail businesses of scale outside of Africa, through previously owned Pepco in Central and Eastern Europe and Best ‘n Less in Australia, Pepkor has proven its ability to identify opportunities in emerging markets to successfully replicate its discount and value business model.
      After an extensive due diligence of more than two years, Avenida was found to be an attractive strategic fit with Pepkor. Avenida is a leading and recognised brand with a successful value and discount business model. It has a highly regarded management team with a proven track record and a culture that resonates with Pepkor’s own values and beliefs. Between the two organisations there is great opportunity for synergies and for Avenida to leverage off the core assets and competencies of Pepkor. This platform allows Pepkor the ideal opportunity to enter the Brazilian market and enable Avenida to fulfil its potential over time.
      Whilst, Avenida is a meaningfully sized business, it is easily digestible from a Pepkor financial and operational perspective. Avenida, together with their former private equity partners, have established high levels of governance, compliance, systems and reporting in line with Pepkor’s requirements.
      Pepkor’s objective is to optimally capitalise the business through the capital injection, provide operational and technical expertise to support the local team and to prepare and position the business to expand its footprint to realise its full potential. A presentation with details of the Transaction is available on the Pepkor website: www.pepkor.co.za.

 

 

They Said It

"Eloise Stocken is the new Shoe Boss -- she has taken over from me, although we do run it jointly at the moment, until I either croak or get the boot -- whichever comes first." - Glen Mitchell, Shoprite Checkers, Cape Town, W. Cape, SA.

 

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za

 

07/02/1957: Arun Prag, Prag Shoes and Leatherworks, Somerset West, W. Cape, SA.
08/02/1949: Jeff Isaacson, agent, Durban, KZN, SA.
08/02/1950: Miles O’Brien, retired, formerly Jordan Shoes, Cape Town, W. Cape, SA.
08/02/1955: Mukesh Merchant, Merchant’s Outfitters, Port Elizabeth, E. Cape, SA.
08/02/1972: Kiran Pattundeen, Palm Footwear, Durban, KZN, SA.
08/02/1975: Hugh Hansen, CL Hansen Agencies, Durban, KZN, SA.
09/02/1970: Cassim Shaikh, Whitewood Investments t/a Shoe Lala, Durban, KZN, SA.
09/02/1971: Anthony Lopez, Lopez Leathers, Cape Town, W. Cape, SA.
09/02/1973: Steven Govender, ?, formerly Spunlok Laminators, Pinetown, KZN, SA.
09/02/1979: Mahomed Tadia, Less Price Fashions, Delmas, Mpumalanga, SA.
09/02/1989: Tahir Jeewa, Traford Footwear, Durban, KZN, SA.
12/02/1951: Jack Bassage, Eddels Shoes, Pietermaritzburg, KZN, SA.
12/02/1961: Jon Robb, Neptun Boot, Pinetown, KZN, SA.
12/02/1968: Pino di Lembo, SA Crocodile & Exotic Skins Agencies, Johannesburg, Gauteng, SA.
12/02/1968: Sean Hadnum, Chillisource, Durban, ZN, SA.
13/02/1950: Rowan Allison, Midland Leather, Pinetown, ZN, SA.
13/02/1950: Dhiraj Dajee, Avalon Job Buyers, Cape Town, W. Cape, SA.
13/02/1964: Jean-Marc Tostee, agent, Durban, KZN, SA.
13/02/1975: Naeem Sonpra, Sonpra Bros, Polokwane/Pietersburg, Limpopo, SA.
13/02/1977: Steven Eckstein, emigrated, formerly Sports Action, Durban, KZN, SA.

 

In Memoriam this week

07/02/2020: Dave Moss (b. 10/06/1954), Sneakers International, Durban, KZN, SA.
08/02/2016: Vishal Rishidaw, Smiley’s Footwear, Durban, KZN, SA.
08/02/2020: Mike Wakeling (b. 18/05/1949), Clarks Footwear, UK, Edworks, Jack & Jill and Millana Shoes, Port Elizabeth, E. Cape, SA, Matchpoint Agencies, Johannesburg, Gauteng, SA.
09/02/2006: Hubertus ‘Hub’ Bijsterveld (b. 11/12/1932), Bata Zimbabwe and other Bata companies, Gweru, Zimbabwe.
10/02/1997: Don Craig, Cape Knife, Cape Town, W. Cape, SA.
10/02/2021: Dhanilall 'Tom' Baijnath (b. 05/11/1938), Western Tailors, Durban, KZN, SA.
11/02/2009: Frederick Bernard Cattell (b. 17/08/1917), Cattell’s, Springs, 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.

 


Classified Adverts




Looking to purchase good condition refurbished machinery for leather goods.

Job creation initiative involving local NPO.
Please contact Susan.
Cell No: 072 410 6683

 




 

 

 

New publications to look out for this week

On Wednesday: S&V Footwear & Leather Goods February edition - The innovators: Footwear and leather goods manufacturers who are doing things differently.
- Sportswear: The gap opens for middle tier brands.

 

 

Directory entries updated last week

Shoprite-Checkers, Cape Town, W. Cape, SA.
Speri cc, Johannesburg, Gauteng, SA.

 

New subscribers last week

Eloise Stocken, Senior Buyer Shoes, Luggage and Socks/Underwear, and Gareth Louw, Junior Buyer Shoes, Shoprite Checkers, Cape Town, W. Cape, SA.

 

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 ¥
09/01/22 R17.71 R21.18 R15.59 R2.44
15/01/22 R17.55 R21.03 R15.37 R2.42
22/01/22 R17.13 R20.47 R15.10 R2.38
29/01/22 R17.38 R20.89 R15.59 R2.45
05/02/22 R17.70 R20.93 R15.46 R2.43

Note: For previous rates, see HERE

 


2. Botswana Pula (BWP)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
08/01/2022 13.32 15.93 11.72 1.83
15/01/2022 13.19 15.81 11.55 1.81
22/01/2022 13.08 15.63 11.53 1.81
29/01/2022 12.88 15.49 11.56 1.81
05/02/2022 13.23 15.64 11.55 1.81


3. Malawian Kwacha (MWK)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
08/01/2022 930.60 1113.00 819.04 128.42
15/01/2022 932.95 1117.99 817.27 128.65
22/01/2022 928.33 1109.07 818.28 129.08
29/01/2022 913.10 1097.51 818.95 128.74
05/02/2022 921.90 1090.07 805.20 126.58


4. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
08/01/2022 19.23 23.00 16.92 2.65
15/01/2022 19.29 23.12 16.90 2.66
22/01/2022 19.88 23.75 17.52 2.76
29/01/2022 20.12 24.19 18.05 2.83
05/02/2022 21.10 24.95 18.42 2.89



5. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ CNY ¥ Official US$
08/01/2022 411.19 491.78 56.74 108.66
15/01/2022 413.12 495.06 56.96 108.66
22/01/2022 410.57 490.50 57.09 112.82
29/01/2022 403.50 484.99 56.89 115.42
05/02/2022 414.35 489.93 56.89 116.65

 

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (03 February 2022) - The current average hide price increased slightly by 0.4% to R5.62/kg from R5.60kg a week ago. The current price is 2.2% higher than the average price a month ago and is 35.8% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R5.22 Maximum price: R5.80. Please note: 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.

  Hides/kg Dorper/skin Merino/skin
Week 1, 2022 5.50 53.00 70.75
Week 2, 2022 5.70 53.00 70.75
Week 3, 2022 5.60 53.00 70.75
Week 4, 2022 5.60    
Week 5, 2022 5.62    

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:
Gopal's Bags & Luggage, Durban, KZN, SA. Travel goods retailer.
Gosafe, Cape Town, W. Cape, SA. PPE retailer.

 

Contact us

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

Next newsletter: February 14, 2022.

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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