S&V Weekly Newsletter Vol.8 No.25, June 20 2022
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Wage negotiations
Footwear sector talks fail
Durban, KZN, SA – Trade union SACTWU has rejected the offer by employers in the footwear sector of the National Bargaining Council of the Leather Industry of SA.
NBC general secretary Gerald Naidoo issued the following statement over the weekend:
"Update on Footwear wage negotiations that took place on 14 & 15 June. N.U.L.A.W & SAFLIA reached an in-principle agreement with 2 options for consideration as a settlement to the 2022 wage negotiations.
"The first option is 7% increase on wages.
"The second option is 6.8% increase on wages plus 1 additional day family responsibility leave. There are also 2 peripheral issues to the settlement agreement. NULAW will revert by Wednesday 22 June on which option their members have chosen.
"However, SACTWU rejected SAFLIA'S offer and declared a dispute which was conciliated on 15 June. The dispute remains unresolved. The Commissioner is considering picketing rules before issuing the certificate of outcome."
Retailing
TFG final results
Pepkor business model 'has allowed sustained performance' through Covid
Cape Town, W. Cape, SA (Fri 17 Jun 2022, 11:40) – Revenue from continuing operations increased to R42.0 billion (R40.7 billion) whilst gross profit went up to R15.7 billion (R14.4 billion). Operating profit multiplied to R17.2 billion (R5.4 billion). Profit attributable to owners shot up to R14.6 billion (R2.7 billion). Furthermore, headline earnings per share jumped to 26 650.86cps (4 899.99cps).
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. The Pepkor Holdings group delivered a solid performance for the first half of the 2022 financial year, based on a stronger second quarter and even more so when considering performance on a two-year comparable basis, which eliminates volatility caused by COVID-19.
Supply chain disruption and uncertainty have continued. The Pepkor Holdings group’s merchandise teams have done exceptionally well to mitigate the impact of disruption on merchandise inflows and in-store availability. While global supply chain uncertainties persist, it seems that shipping costs have stabilised and may trend downwards.
Strong trading is expected during the second half of the year for Pepkor Holdings, supported by the lower base in the comparable period, which was affected by the civil unrest. Trading in April 2022 was strong across most businesses, with softer trading in May 2022. Pepkor Holdings’ plans to open more than 300 stores in the 2022 financial year remain on track.
The successful implementation of the Global Litigation Settlement during the Reporting Period was an important development for the Steinhoff Group, as pending legal proceedings against the Steinhoff Group, that have been compromised under the Global Litigation Settlement, were withdrawn and discontinued.
This allowed management to focus exclusively on Step 3 of the strategic plan – simplifying the portfolio and deleveraging the balance sheet by reducing debt and financing costs through inter alia further asset disposals. At the same time, it will allow the operating companies within the Group to run and build their businesses free from any external distractions.
Closing down: Never an easy decision
Kyle Seita, former owner of comfort footwear specialist retailer Shooze and lingerie store Bra Bar, explains the decision he and his wife made to close their stores:
We closed the stores in East Rand Mall last year Feb 2021, which were a lingerie store and Shooze, and we also closed our Bedford lingerie store.
We opened a temporary Shooze store in Stonehill Crossing, Greenstone. It was a short lease to test the market.
Closing the 3 initial stores in Bedford and East Rand Mall was a result of the pandemic, imports being affected as well as landlords still wanting to charge pre-pandemic rental amounts which made the business unsustainable quite rapidly.
We also tried a weekend pop-up store in Meadowdale Mall and were shocked at the amount of Checkers Sixty Sixty operators going in and out of the mall. People who normally would have been clients, with the emergence of online grocery shopping, our opportunity to capture “Sunday Shoppers” had diminished.
Stonehill Crossing did okay, however we are not in the business to do okay. When the July riots happened it was the last straw and we decided to exit the industry completely.
I have always been in the financial field so I have now contracted myself with Discovery through a franchise and my wife is selling stock directly to clients from our customer data and Facebook market place.
It wasn’t an easy decision however ultimately I think the best decision. All of the stores that we occupied remain unoccupied except the Shooze store in East Rand Mall has just been re-leased as a clothing store, Kinda making us feel like we had a bit of a bad omen on the store lol.
Counterfeit goods
SARS and DTIC donate tonnes of seized clothing, blankets and footwear to flood victims
Pretoria, Gauteng, SA (08 June 2022) – SARS and the Department of Trade Industry and Competition (dtic) have joined forces to donate tonnes of seized clothing, blankets and footwear to flood victims in KwaZulu-Natal (KZN), Eastern Cape, North West, and the Free State provinces.
The initiative, named Project Sizani (We all Help), took shape after the declaration of a state of disaster by Pres. Cyril Ramaphosa in response to the recent heavy rains and flooding in the Eastern Cape, North West, Free State and Kwa-Zulu Natal provinces.
SARS conceived of the idea of making seized clothing, blankets and footwear available, which are strictly regulated by the Customs Act, Act 91 of 1964, administered by SARS, and the Counterfeit Goods Act, administered by the Dtic, as well as a 2009 and 2020 NEDLAC agreement, stipulating that seized goods must be destroyed so as to avoid disruption to the South African market.
It is important to note that SARS, by itself, is not in a position to conduct an operation of this magnitude from a legislative or operational perspective. A raft of engagements and approvals by various key government and other external stakeholders, as well as their direct involvement, were required to make it happen.
This included a “once-off deviation” from the NEDLAC agreement, as agreed upon during a meeting with key stakeholders in the Clothing Textile Footwear and Leather Industry (CTFL) to enable the donation of specific CTFL goods that have been seized and forfeited to SARS to the victims of the severe weather events of April 2022.
The execution of the operation is led by a Governance Task Team (GTT), established for this purpose. This team works in close collaboration with the National Disaster Management Committee to obtain information and direction on matters of common interest, as well as to align the efforts of the donations of the goods with the bigger government led project. The GTT is responsible for overseeing the process flow and to ensure that the donated goods are duly accounted for. The distribution is strictly monitored through the close working relationship at ground level with the Department of Social Development (DSD) and the current shelters that are housing people.
Inputs from the KZN Premier’s Office were used to develop the donations operational plan, which sets out the principles governing the process of donations such as quantities proportionate to the confirmed numbers of the people in need, as well as governance processes to protect the entire donations value chain.
In addition, the provincial department of Cooperative Governance and Traditional Affairs (COGTA), through its disaster management structures, played a leading role in preparations for the donations process, while the involvement of organised labour and the CTFL industry, as key stakeholders, are deemed necessary in every step of the project to monitor the processes and ensure any risks that may harm the local business are mitigated. The South African Association of Ship Operators and Agents (SAASOA) assisted with the transport of the containers to the warehouse in Durban, from where distribution takes place.
Due to the critical need for blankets in eThekwini, the roll-out of a pilot programme for the donations started in KZN last week. During the seven-day pilot approximately 1612 blankets are being donated to specific flood victims at shelters in eThekwini, as identified by the KZN Premier’s Office. In total altogether 35 806 seized blankets/duvets are earmarked for distribution across the affected disaster areas in the country.
The process of engagement with Eastern Cape and North West have started and is intended to be a replica of the KZN operations.
SARS Commissioner Mr Edward Kieswetter thanked all Government Departments that have collaborated to deliver such a sizeable contribution to assist the victims of floods. He said, “We hope and trust that this gesture of goodwill will go a long in mitigating suffering that was brought about by this natural calamity. The blankets, especially now during winter, will a make difference to all”.
In case you missed it!
The June issue of S&V Footwear & Leather Goods Magazine
S&V FOOTWEAR & LEATHER GOODS MAGAZINE VOL88 NO6 June 2022
IN THIS ISSUE:
03 Upfront
- Impressive results from Portugal's footwear industry.
- Stats show SA's footwear industry started well last year, then ran out of steam.
05 Productivity
- Employers, unions in talks to 'make SA footwear manufacturing more competitive'.
06 Crime
- Counterfeit Fila product seized in raid.
09 Sector Reports
- Sport: Golf is out of the rough and forecasting very good growth. Comment by Rhys Hughes, former director of the Pro Shop, Jesse Henney, GM of Acushnet SA, Adolf Stoffberg, CEO of Duca del Cosma SA, and Danie Theron, operations manager of The Pro Shop.
- Safety: With increased recycling, Wayne seeks to increase its sustainability credentials.
13 Foot Health
- The near eradication of polio has all but wiped out the need for surgical footwear, writes Gerrit Ferreira of Northcliff Orthopaedic Centre. The focus of orthotists and prosthetists has changed to providing prostheses for amputation victims.
14 Sustainability & Compliance
- Southern African Vinyls Association launches 'green tick' for members who follow its product stewardship guidelines.
- Luxury goods manufacturer Richemont 'reports strong ESG performance' in full year report.
17 The U.S. Market
- NPD: Prioritizing value: 5 tips for overcoming pricing pressures.
- NPD: Women's plus-size spending grew over 3 times faster than the rest of the apparel market in 2021.
- NPD: Socks stayed on as sales knocked us off our feet.
19 Fairs & Events
- A-OSH returned after a 2-year absence. Comment by Vanessa Ronald of BBF Safety Group, Natashia Singh of Palm Footwear, Albie Alberts of Kaliber, and Geraint Beacham of Magnum Boots.
16 Knowledge Transfer, Education & Training
- ARSUTORIA workshops resume.
- Leather: An introduction - The second in a 4-part series by Richard Daniels for people with little or no knowledge about leather.
Advertisers in this Issue
ASSOCALZATURIFICI/MICAM Milano (11), BBF Safety Group (OFC), Crick Group/Sebago (04), Freestyle Genuine Handcrafted Leather (02), FrontierCo/Delsey (07), FrontierCo/Busby (08), Italtan (06), JFK Trading/Jack Parcels (13), S&V Calendar (below), S&V Directory (15), SAFLEC (05), Saddler Belts (03).
CLICK HERE TO VIEW IT ONLINE
They Said It
"Are you sure you've got that right? He's standing right here in front of me." - Agent Suliman Haroon referring to retired retailer Yusuf Kadwa, whose name appeared last week under both birthdays and In Memoriam. He was the former long-standing and very respected owner of May's Shoes, Durban, KZN, SA. No, I've no idea how it happened. If I wish someone ill, I prefer to stick pins in their effigies. And yes, I have quite a few of those - metaphorically, anyway.
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
20/06/19??: Patricia Khumalo, the DTI, Pretoria, Gauteng, SA.
21/06/1962: Carl Brinkmann, agent, Windhoek, Namibia.
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.
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.
25/06/2021: Guy Blake [b. 12/07/1970], commission agent, Cape Town, W. Cape, SA.
26/06/2021: Gordon Singh (b. 02/02/1931), retired, formerly Monique Shoes, 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.
Directory entries updated last week
Ezweni Shoe Components, Durban, KZN, SA.
Kookaburra SA
Podiatry Association of SA, Alberton, Gauteng, SA.
Fairs & Events updated last week
Taipei ShoeTech, Taipei, Taiwan.
New subscribers last week
Kegomo Ditswe, Pear Africa, Johannesburg, Gauteng, SA.
Kelly Truter, Bolton Footwear, Cape Town, W. Cape, SA.
Ashwin, Sneakers, Durban, South Africa
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
18/06/2022 |
1072.23 |
1248.76 |
1021.55 |
152.20 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
US $ |
CNY ¥ |
18/06/2022 |
17.86 |
20.81 |
17.02 |
2.53 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
|
Euro € |
GBP £ |
CNY ¥ |
Official US$ |
18/06/2022 |
379.85 |
442.39 |
53.91 |
341.24 |
Note: For previous rates, see HERE
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (09 June 2022) - The current average hide price remained unchanged at R4.14/kg from a week ago. The current price is 0.6% lower than the average price a month ago and is 50% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R4.00 Maximum price: R5.00. 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.
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:
His Place, Port Shepstone, KZN, SA. Men's boutique.
H.J. Uitrusters, Jan Kempdorp, N. Cape, SA. Men's and women's outfitter.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: June 27, 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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