S&V Weekly Newsletter Vol.9 No.03, January 16 2023

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Potential Eddels buyer identified

Johannesburg, Gauteng, SA - Hitherto little known top end manufacturer Caralli Footwear (Pty) Ltd is the company negotiating with the Industrial Development Corporation to buy Eddels Footwear.
      Caralli is wholly owned by B&B Media, which is also the major shareholder in Buka Investments, a holding company in the process of being listed on the AltX, the parallel stock exchange for small and medium-sized companies owned by the Johannesburg Stock Exchange (JSE).
      Werner Grobbelaar, group financial manager of B&B Media, who confirmed the above information last week. said negotiations had been taking place since August last year, "and although the process is quite advanced we are not in a position to engage in a discussion around the transaction.  I can however confirm that  towards the end of this month we should have clarity on the agreements and the way forward."
      On its website, Buka describes itself as "bringing quality fashion to aspiring customers in South Africa and beyond". It also bought Socrati Footwear mini-chain in July last year.
      Eddels CEO John Comley sent a letter to staff on Wednesday in which he said the primary reason for the sale was to return the company to profitability. He said Caralli wanted to retain key staff and "existing stakeholders", but that "if the sale is successful, the potential buyer may in due course, and if necessary, relocate the business to Johannesburg".
      More in the January issue of S&V Footwear and Leather Goods, out later this week.

Back-to-school: Indications are that this business is returning to normal

Idris Pandor, director, The Gem Group of Companies
Durban, KZN, SA - Sales are up by approximately 15% to 20% over last year, although I have heard of a higher increase in the market place.
      Issues with procurement? Proper planning, like ordering/purchasing 6 to 9 months in advance, makes a HUGE difference. Obviously it's a drain on one's finance, but you have the stock on your shelf when you need it.
Another point to note: If one conducts business with reputable manufacturers, who have the finance to carry raw material and stock and provide their own power (generators), then everyone is winning.
      The days of 'JIT' Just In Time are long gone!!! We never relied on JIT and God willing will not do so.
      Money in stock is worth more than the returns in the BANK!
      Our wholesale growth is strong and on the increase...as usual the only pitfall is that one has to be alert for bad debts/companies closing down. Controls have to be tight.
      Our online sales are growing quite well. Although clothing is a fit and feel item, we hope in approximately 5 years time there should be a quite a change. We are still at the bottom of the curve...lots of scope to grow.


Abdul Hajat, member, Fana's Outfitters cc
Bethlehem, Free State, SA - Sales have increased compared to last year, I suppose it's because schools opened earlier this year.
      The increase in prices has definitely affected sales, and customers are buying fewer units.
        There have been problems with deliveries of specialised items. If orders were not placed by May, it was very likely you would not get stock.
      The chains are affecting our back-to-school business: They give accounts, and with the current economic crisis, the consumer uses those credit facilities.


Iqbal Hajat, director, Footwear Centre Ltd
Blantyre, Malawi - With regards to the school trade, we have noticed an increase of around 10% in sales, which I believe is due to our competitors having lack of size availability and higher prices.
      We have been getting very good supplies from our manufacturers in KwaZulu Natal.  We did have a few delays due to flooding in that area last year.
      We are still finding that parents are going for the higher priced leather product in many cases.


Chris van den Berg, member, Burgers Brothers cc
Johannesburg, Gauteng, SA - Trade has been much better than last year.
      Absolutely there have been issues with procurement:  Load shedding is hindering production.
      I haven't really noticed any difference in what parents are prepared to pay.

They Said It

"It's still a tough scene. Many of my old crew have gone into the cottage industry making sandals and shoes like The Cathula, but they need better quality. It's all pretty small scale. I hear the same problems that made me leave are still happening - hyperinflation, foreign currency shortages, and frequent power and water outages. But it's not all bad; I've heard the government is working to improve things. There are more tourism, mining and investment opportunities now. But as many Zimbabweans know, the situation in the country is complex and constantly changing." - Tinashe Mandirahwe, former Zimbabwean manufacturer and now Canadian businessman and retail analyst, on business conditions in the footwear industry in his home country.

Directory entries updated last week

JAE(T) Ltd, Mwanza, Tanzania.

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

17/01/1949: Carol Mentor, retired, formerly NULAW, Cape Town, W. Cape, SA.
17/01/1961: Gita Chetty, Angelai’s, Durban, KZN, SA.
17/01/1963: Michael Lawrence, National Clothing Retail Federation of SA, Cape Town, W. Cape, SA.
18/01/1950: Roy Naidoo, Best Shoes, Pietermaritzburg, KZN, SA.
18/01/1977: Guy Millar, Rags on Trend, Midrand, Gauteng, SA.
19/01/1943: Richard Šantrůček, retired, formerly Conshu (closed), Cape Town, W. Cape, SA.
19/01/1960: Saleem Khamissa, His Place, Port Shepstone, KZN, SA.

16/01/2000: Brenda Fairhead, Fairhead’s [closed], Cape Town, W. Cape, SA.
16/01/2004: Derek Funnell (b. 07/10/1938), Carl Freudenberg/DB Funnell Leathers, Cape Town, W. Cape, SA.
17/01/2012: Graham Pearson (b. 16/01/1929), Apeco, Pinetown, KZN, SA.
17/01/2022: Geert Schuiling (b. 26/11/1954), Procap Leather, Woodheads, Geert Schuiling Design, Cape Town, W. Cape, SA.
18/01/2002: Frank Mellon (b. 04/02/1930), Valmell Components, Durban, KZN, SA.
19/01/2005: Thomas Anthony (Tony) O’Sullivan (b.08/06/1928), Vogue Shoes and others [closed], Cape Town, W. Cape, SA.
20/01/2010: Johan Bester (b. 08/11/1936), ProGlove, King William’s Town, E. Cape, SA.
21/01/2021: Mohamed Farouk Kader (b. 20/11/1952), Kaytex Belts, Pretoria, Gauteng, SA.
22/01/1997: Charles Lintner, Bata SA, 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.

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 (12 January 2023) - The current average hide price increased by 1.4% to R4.21/kg from R4.15/kg a week ago. The current price is 0.6% higher than the average price a month ago and 26.2% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R4.00 Maximum price: R5.00. Dorper skins are 6.8% up week on week, 7.0% up month on month, and 11.3% up year on year. Merino skins are -0.5% down week on week and month on month, and -16.4% down year on year. 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:
Jamnada's Tailors & Outfitters, Polokwane/Pietersburg, Limpopo, SA. Men's outfitter.JAET Ltd, Dar es Salaam, Tanzania. Footwear and leather goods manufacturer.
Janine's Clothing, Hermanus, W. Cape, SA. Women's boutique.Jaime H., Meyersdal, Gauteng, SA. Women's boutique.

Contact us

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

Next newsletter: January 23, 2023.

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

Our website www.svmag.co.za