S&V Weekly Newsletter Vol.8 No.27, July 4 2022

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Retail

This week the interviews were with retailers in North West Province, an area dependent on mining and agriculture.

Hard hit by a poor June, but retailers looking increasingly at online sales and marketing

Klerksdorp, N. W. Province, SA - A men's outfitter who preferred to remain nameless, but who specialises in larger sizes, said business is "significantly down on 20 years ago, and a bit down on pre-Covid". He has, however, stuck to his business model, stocking clothing and footwear which doesn't date, under brands like Sterling and Grasshoppers. "We're a destination store," he said, "but I've had to balance trading from a store in the Indian Centre which we own, but which is near a taxi rank and where crime is an issue. For personal reasons, we haven't moved, but what our customers - many of them farmers - tell us, is that they'll still come from out of town, but the spiralling cost of petrol means they'll come less often." One change he has made is advertising on Facebook, "and that's helped".

Brits, N.W. Province, SA - General dealer Hagels has found business "very tough", said Khalit Ghoor, 1 of 3 members of the family business which started in 1974. Hagels has done away with women's clothing and footwear, and in men's wear, offers formal and casual. Most of its men's footwear, and all of its school footwear, is leather. School wear is an important part of the business which has been affected by a move to source school uniforms from township dressmakers. "We don't mind that, as long as the schools give us some warning," he said. "Otherwise we're left with unsellable stock." Hagels previously relied on knock-and-drop print advertising, but he said that had become ineffective, and the business was looking at electronic marketing.

Rustenburg, N.W. Province, SA - June was "not one of the best months" for American Junior, Casa Blanca and Figo's, the 3 stores which make up Yankees Stores cc, said member Yusuf Carrim. "Year-on-year, turnover is down 10%," he said, "but in real terms, with higher prices, it's closer to 15%." He blamed factors like load shedding and general unemployment, and online sales in June were poor. Rustenburg is in a major mining area, and even though the mines were doing well and not retrenching people, "they're employing through sub-contractors, so the contracts are short-term". He said American Junior had moved to its own premises, just off the main street. "We've become a destination store for the brands that we carry," he said, "but we lose out on passing trade". He said the business's strategy was to seek a degree of exclusivity with new brands. "That has been quite successful," he said, "and we've had excellent electronic support from some of them".

Carletonville, N.W. Province, SA - Business in Carletonville has been "very quiet" following a 3-month strike on a mine in the area which ended the week before last, said Ashley Bamnali, member of footwear retailer Ashley's Boutique. "It will take a while for people to come back," he said. "People from the mines are the only real customers in this area. No-one else has money." Load shedding - the store had no power as we spoke on Saturday - and the general poor state of the economy were taking a toll, he said. Ashley's carries mostly men's footwear, and historically concentrated on leather, with a high proportion of formal styles. "Now we look for reasonable price first," he said.

Rustenburg, N.W. Province, SA - May and June were both poor trading months, said Bossini member Waseem Carrim. "There are always a few people at the end of the month," he said, "but everything has gone up and the rise in petrol has made it more difficult for people to come into town". Bossini, a lifestyle branded business catering to men, women and children, was founded in 1970, and has 2 stores. It has been offering online retailing for the last 3 years and website, Facebook, Instagram and TikTok presences. "Online isn't as good as the physical stores, but it's something," he said, "and that's what we're promoting." On the apparel side, Bossini offers casual lifestyle wear, but in footwear, it has an eclectic mix of formal and casual, local and international brands, "and we're growing within those brands", he said.

Competition Tribunal

Tribunal grants Mpact leave to intervene in Corruseal, Neopak merger consideration proceedings

Pretoria, Gauteng, SA (30 June 2022) – The Competition Tribunal has issued an order granting Mpact Operations (Pty) Ltd leave to intervene in the consideration of the intermediate merger proceedings before the Tribunal involving Corruseal Group (Pty) Ltd and Neopak Holdings (Pty) Ltd.
      Corruseal and Neopak opposed Mpact’s intervention application heard by the Tribunal last week on 22 June 2022.
      Mpact is a competitor to Corruseal and Neopak in the market for the supply of recycled containerboard and is also active in (downstream) corrugating activities.
      The Tribunal’s order limits Mpact’s participation in the proceedings in terms of the merits to the following issues or theories of harm:
* That the proposed transaction will increase the concentration of the 100% recycled containerboard market with the result that there will be a substantial lessening or prevention of competition in this market.
* That the proposed transaction will give rise to input foreclosure in the corrugated board and corrugated packaging market in that the customers of Corruseal and Neopak will be foreclosed from access to the merging parties’ 100% recycled containerboard, whether on the terms that they currently enjoy or at all, in consequence of the merging parties supplying their 100% corrugated containerboard to Corruseal’s corrugator activities, and Corruseal expanding its corrugator activities.
* That the proposed transaction will result in co-ordinated effects in the corrugating market in that Corruseal will have the incentive and power, from its increased supply of sheetboard to the Everest Group, to exercise disciplining power over the Everest Group in the corrugating market.
      In March 2022, the Competition Commission prohibited the proposed (intermediate) merger. The merger parties then filed a request for consideration with the Tribunal, seeking to have the proposed merger unconditionally approved or, alternatively, to have it approved with conditions deemed appropriate by the Tribunal.
      Thereafter, Mpact sought to be recognised as a participant in the request for consideration, inter alia, on the basis that it would be able to assist the Tribunal in determining the competitive effects of the merger in the relevant markets.

They Said It

"Comments are correct, my date of birth is 10 Nov  1954, been in the business since 1976,  going on  46 years, and learning all the time." - Yusuf Carrim, managing member, Yankees Stores cc in Rustenburg, N.W. Province, SA. If you boil down the definition of a sentence, it would typically contain 1 thought. He's managed to cram in 5. Independent retailers have to make the most of everything.

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

04/07/1952: Eddie Lahee, formerly Shoeperama [closed], Durban, KZN, SA.
04/07/1956: Warren Wareing, Island Style, Durban, KZN, SA.
04/07/1967: Martin MacGregor, Bay Solutions, Port Elizabeth, E. Cape, SA.
04/07/19xx: Clare Jones, Zip-Code, Umhlanga, KZN, SA.
05/07/1941: Judy Powell, retired, formerly Footwork, Trafalgar, KZN, SA.
06/07/1974: Gary Gilder, formerly Bolton Footwear, Cape Town, W. Cape, SA.
07/07/1953: Khalit Ghoor, Hagels, Brits, N.W. Province, SA.
07/07/1955: John Kotze, Designer Marketing Int. Johannesburg, Gauteng, SA.
07/07/1959: Lenette van Vuuren, Incredible Shoes, Ladysmith, KZN, SA.
07/07/1965: Anil Rupnarain, Michelle Footwear, Durban, KZN, SA.
07/07/1966: Sakkie Kriel, Vellie Boutique, Boksburg, Gauteng, SA.
07/07/19xx: Jaybharat Jethwa, The African Boot Co., Nairobi, Kenya.
08/07/1950: Sam Muller, BEC Safety, Port Elizabeth, E. Cape, SA.
09/07/1942: Cecil Fenwick, Saddler Belts & Leathercraft, Durban, KZN, SA.
09/07/1949: Bryn Proctor, ?, formerly Crown Footwear, Pinetown, KZN, SA.
09/07/1958: Johan Kriel, retired, formerly Bolton Footwear, Great Brak River, W. Cape, SA.
09/07/1969: Hein Jonker, Ostrich Products SA, Oudtshoorn, W. Cape, SA.
09/07/1975: Gian-Paolo Bresolin, left the industry, formerly Andreoli Shoes [closed], Pinetown, KZN, SA.
10/07/1940: Erwin Metzger, Sanata Footwear, Durban, KZN, SA.
10/07/1945: Colin Symons, retired, formerly Elco Plastics, Cape Town, W. Cape, SA.
10/07/1970: Shelley Zhang, left the country, formerly Lavanda Shoes, Randburg, Gauteng, SA.
10/07/1972: Annah-Mae Blair, The New Shoe Company, Durban, KZN, SA.
10/07/1976: Johan Venter, Rolfes Leather, Boksburg, Gauteng, SA.
10/07/1991: Roal Boezaart, Freedom of Movement, Pretoria, Gauteng, SA.

04/07/2010: Kasieprasad Pattundeen (b. 29/12/1924), Palm Footwear, Durban, KZN, SA.
05/07/1999: Norman Berrill, Jack & Jill [closed], Port Elizabeth, E. Cape, freelance designer, Durban, KZN, SA.
06/07/1996: Eric Waterworth, King Tanning Company [closed], Pietermaritzburg, KZN, SA.
06/07/2020: Malcolm Novos (b. 28/04/1949), Economic Shoe Store, Paarl, W Cape, SA.
07/07/1993: Rob Scallan, Tuftex, Port Elizabeth, E. Cape, SA.
09/07/2015: Mahomed Ebrahim Haffejee (b.18/08/1930), Capri Bag, Durban, KZN, SA.
10/07/2002: Rodger Brewitt (b. 25/11/1947), Bata Zimbabwe, Gwelo, Rhodesia/Bata SA, Pinetown, KZN, SA.
10/07/2014: Terry Thomas (b. 12/05/1935), agent, Durban, KZN, SA.
10/07/2021: Richard Delfel (b. 02/06/1955), GST Seton Autoleathers (now Pangea), Nigel, 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.

Directory entries updated last week

A.A. Minty, Klerksdorp, N.W. Province, SA.
African Overalls, Port Elizabeth, E. Cape, SA.
American Junior/Casablanca/Figo's, Rustenburg, N.W. Province, SA.
Ashley's Boutique, Carletonville, N.W. Province, SA.
Beier Envirotec, Pinetown, KZN, SA.
Bossini cc, Rustenburg, N.W. Province, SA.
Fubu SA, Sandton, Gauteng, SA.
Hagels, Brits, N.W. Province, SA.
Sole Agents Distribution, Sandton, Gauteng, SA.
Treadsafe / Euro Safety Footwear / Mammoth Workwear, New Germany, KZN, SA.
Yankees / Dixon's, Rustenburg, N.W. Province, SA.

New subscribers last week

Kuben Pillay, Beier Envirotec, Pinetown, KZN, SA.
Dimitri Themistocleous, Dangee Carken, Johannesburg, Gauteng, SA.
Ian Haddow, Brando Products, Durban, KZN, SA.

3. Malawian Kwacha (MWK)

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

4. Zambian Kwacha (ZMW)

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

5. Zimbabwean Dollar (ZWL$)

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

Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (30 June 2022) - The current average hide price decreased slightly by 0.7% to R4.11/kg from R4.14/kg a week ago. The current price is 0.7% lower than the average price a month ago and is 56.9% 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:
Halsted & Co., Welkom, Free State, SA. PPE distributor.
Haly's Fashion, King Shaka International Airport, La Mercy, KZN, SA. Men's and women's boutique.

Contact us

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

Next newsletter: July 11, 2022.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Our website www.svmag.co.za