S&V Weekly Newsletter Vol.9 No.05, January 30 2023
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National Consumer Commission seeks meetings with CTFL importers over compliance with Consumer Protection Act
Pretoria, Gauteng, SA - The National Consumer Commission (NCC) is asking CTFL sector importers to attend 'engagement sessions' in Pretoria, Durban and Cape Town to discuss the compliance of their products with the Consumer Protection Act.
The sessions will be on 15 February in Pretoria, 17 February in Durban and 24 February in Cape Town.
In an email from NCC senior research Shaheen Buckus, the NCC said the the objectives of the engagement sessions were:
"To raise awareness of relevant section/s of the Consumer Protection Act when importing goods into South Africa
"To determine the challenges associated with complying with the relevant provision/s pertaining to importing goods into South Africa
"To determine if the relevant provisions of the Consumer Protection Act are administratively burdensome and what can be done to reduce any burden.
"Importers are encouraged to attend the sessions as it will assist the NCC in enhancing the ease of doing business if there any obstacles that are identified."
Importers are requested to confirm their attendance via email by 01 February - Wednesday this week - to Sindie Kenny: s.kenny@thencc.org.za.
The Pretoria meeting will be at the SABS, 1 Dr Lategan Rd, Groenkloof. Durban and Cape Town venues will be confirmed.
For any other queries, contact Buckus at S.Buckus@thencc.org.za.
Back-to-school wrap: A huge improvement, though there are issues with cash flow and manufacturing capacity
Michael Wyatt, Country Manager, Bata South Africa
Pinetown, KZN, SA - Overall Back To School was extremely successful from a manufacturing, distribution, and retail perspective. We saw double-digit growth vs. plans, and a strong January top-up demand despite 2022’s inflationary pressure on raw material costs and gross margin. The majority of retailers will only provide full Back To School feedback come to the end of January, but from those we have aligned with already, the report is that sell-out has been great in both Bata leather and synthetic collections.
Rajeev Pattundeen, MD, Palm Footwear
Durban, KZN, SA - Back to school was very good.
We are again tracking 2019 volumes.
Margins are under pressure; we remain grateful to our partners who continue to demonstrate confidence in us as a business.
It was a very tough year and we are still recovering from the floods of April 2022. Our family at the plant worked through the devastation and again have proven their mettle in dealing with disaster which we have become accustomed to in KZN.
Their dedication cannot slip by unnoticed.
Thankfully, we planned well; the requisite inventory levels were maintained throughout back-to-school, enabling us to service our retailers to their expectations and beyond. Cash flow is reality, our customers have not let us down. We envisage a challenging year; our team will show up, that’s for sure.
Idris Pandor, director, Gem Schoolwear
Sales have definitely been much better than the last 2 years.
Issues with supply? Shoe manufacturers and wholesalers have run out of a size or two.
Bag manufacturers ...very few reliable ones, and trying to get stock out of them is a challenge. They either have capacity issues or are underfunded businesses, together with poor planning. It's really stressing us out.
Trying to get stock of a PDR tracksuit is also challenging... it goes back to sourcing of yarn, capacity, buying generators and lastly labour.
We stock the following school shoe brands: Bata, Step on Step, Green Cross, Froggie, Elefante, Grasshopper, Buccaneers, some Tuff Beat and Hush Puppies ... most have moved on to synthetics.
Payments? Keeping a tight ship helps steer us financially. Take your eye of the ball and you could be collecting up to June and at times beyond!!!
TFG acquisition of Street Fever
Cape Town, W. Cape, SA (23 January 2023) - In a SENS announcement, The Foschini Group repeated the announcement it made via the financial press in December that it has bought Port Elizabeth-based sport fashion chain Street Fever. It will rename most of the stores under its own brand, Sneaker Factory, and convert remaining stores to other TFG brands.
The announcement also said: Shareholders of TFG are advised that the Group, through its value athletic and leisure footwear retail brand, Sneaker Factory, has entered into an agreement to acquire Street Fever, an independent retailer of affordable branded footwear and apparel.
The Acquisition will allow TFG to scale up its presence in the value branded footwear segment and gain new customers while offering them greater choice of brands and products through TFG's sourcing capability.
Implementation of the Acquisition is subject to the fulfilment of conditions precedent normal for a transaction of this nature, including approval by the relevant Competition Authorities.
On completion of the Acquisition, the 114 Street Fever stores, their leases, and store-related staff will be taken over by TFG, with approximately 90 of these earmarked to be rebranded as Sneaker Factory stores. The remainder, which are located where Sneaker Factory outlets are already in close proximity, will be taken up by other TFG brands.
Childhood Cancer Foundation Flip Flop Day
Johannesburg, Gauteng, SA - The Childhood Cancer Foundation (CHOC) holds its annual Flip Flop Day on 17 February. The idea is that people buy a R10 sticker from PNA, Tekkie Town or by visiting https://choc.org.za/, putting it on the sole of a flip flop, and wearing your flip flops to work. Visit the website for details.
Stock Exchange News Service (SENS) reports
Truworths - voluntary trading statement and update, 26 weeks 04 July 2022-01 January 2023
SA and UK sales up over 13%
For the full report, go to https://www.sharedata.co.za/v2/Scripts/News.aspx?c=TRU&sensid=441630
Cape Town, W. Cape, SA (Thu 26 Jan 2023, 7:23) - During the first 26 weeks (from 4 July 2022 to 1 January 2023) of the Group’s 2023 financial period Group retail sales increased by 13.7% to R11.3 billion compared to the first 26 weeks (from 28 June 2021 to 26 December 2021) of the 2022 financial period.
In the current period, account sales comprised 52% (Dec-2021: 51%) of Group retail sales, with account and cash sales increasing by 16.5% and 10.8%, respectively, relative to the prior period.
At the end of the current period approximately 77% of Truworths Africa’s turnover was covered by back-up power. The Group continuously assesses the back-up power needs of its stores and will install additional or extend existing back-up power solutions where appropriate. Notwithstanding these efforts, load shedding is likely to have had a negative impact on retail footfall, and consequently on retail sales, especially in malls without back-up power.
Retail sales for the Group’s UK-based Office segment increased in Sterling terms by 13.6% to GBP40 million relative to the prior period’s GBP123 million. Office’s trading space decreased by 3.8% compared to Dec-2021 and is expected to decrease by approximately 9% for the 2023 financial year as the business continues to exit marginal and loss-making stores as leases expire or lease breaks become available.
The Group’s interim results for the current period are scheduled for release on or about Thursday, 23 February 2023.
Truworths Africa
Retail sales for Truworths Africa increased by 13.8% to R8.4 billion relative to the prior period. Compared to the corresponding prior period, retail sales for the current period increased by 13.4%. Online sales continued to show good growth in the current period increasing by 50% and contributing 3.0% to Truworths Africa’s retail sales.
All of the Group’s South African stores are able to trade during load shedding, either manually (i.e. offline) or by way of back-up power installed by the Group or made available by landlords. At the end of the current period approximately 77% of Truworths Africa’s turnover was covered by back-up power.
Account sales comprised 70% of retail sales (Dec-2021: 68%). Strong demand for merchandise purchases on account has resulted in Truworths Africa’s gross trade receivables increasing by 19.3% to R7.1 billion (Dec-2021: R5.9 billion), with the number of active accounts increasing by 5.7% to 2.8 million (Dec-2021: 2.6 million). These increases occurred notwithstanding that the Group continued to apply its strict credit-granting criteria, and reflect the enticing nature of the Group’s account and product offering. Active account holders able to purchase and overdue balances as a percentage of gross trade receivables were at 84% (Dec-2021: 85%) and 11% (Dec-2021: 10%), respectively.
Trading space increased 0.8% relative to Dec-2021 and is expected to increase by approximately 2% for the 2023 financial year. Product (retail selling price) inflation averaged 13.3% in the current period (Dec-2021: product deflation of 2.4%).
Office
Retail sales for the Group’s UK-based Office segment increased in Sterling terms by 13.6% to £140 million relative to the prior period’s £123 million. In Rand terms, retail sales for Office increased by 13.3% to R2.9 billion. Compared to the corresponding prior period, retail sales for the current period increased by 12.3% in Sterling terms. E-commerce comprised 44% of Office’s retail sales in the current period, declining from a contribution of 47% in the prior period as high-street trading continues to normalise.
Office’s trading space decreased by 3.8% compared to Dec-2021 and is expected to decrease by approximately 9% for the 2023 financial year as the business continues to exit marginal and loss-making stores as leases expire or lease breaks become available.
AVI - trading statement and update, 6 months ended 31 December 2022
Fashion sales up over 17%, ahead of rest of group
For the full report, go to https://www.sharedata.co.za/v2/Scripts/News.aspx?c=AVI&sensid=441663
Johannesburg, Gauteng, SA (Thu 26 Jan 2023, 10:14) - The semester’s trading environment was challenging with record levels of load-shedding negatively affecting our manufacturing, distribution and retail operations. The impact was mitigated through back-up power solutions but nonetheless added R22.0 million to direct operating costs. While the indirect costs of chronic load shedding are difficult to quantify they are significant, exacerbating the complexity this imposes on our operations, supply chains and distribution logistics. We have invested in back-up power options for a number of years and continue to do so; there is however a meaningful capital cost to this. Heightened currency and commodity volatility, and sustained high fossil fuel prices increased many of our input costs substantially. Our hedging practices reduced the impact of this cost pressure but price increases were necessary to protect gross margins in some categories.
It is expected that AVI will release its full results for the six months ended 31 December 2022 on or about 6 March 2023.
Rising inflation, higher interest rates and unemployment continue to constrain consumer spending. Whilst we have strong and resilient brands, affordability is a growing constraint for consumers, limiting their ability to digest higher prices. Sales volumes were lower in some categories, exacerbated by competitor discounting, with cost pressures not always recovered through higher prices.
Group revenue increased by 7.2% over the same period last year. The fashion retail brand portfolio had a pleasing semester, with sound volume growth and price increases lifting revenue by 17.4% over the prior period. December’s retail sales were particularly strong, and were well ahead of pre-Covid levels.
The group’s consolidated gross profit margin improved marginally. The annualisation against the prior year’s write-offs following the July 2021 riots, fastidious cost control, the benefits of the trademarks acquired from Coty, and improved footwear and apparel profitability, contributed to the improvement.
In case you missed it!
The January issue of S&V Footwear & Leather Goods Magazine
S&V FOOTWEAR & LEATHER GOODS MAGAZINE VOL89 No1 January 2023
IN THIS ISSUE:
02 Innovation
- Virtual try-on arrives in fashion stores.
03 Trade Fairs & Events
- Première Vision Paris' Maison d'Exceptions: The search for something different.
04 Global Markets
- Italy: First 9 months of 2022, turnover up 13.9%, exports up 23.7%, writes ASSOCALZATURIFICI's Fabiana Tempestini.
- USA: Repositioning retail for 2023.
- Maximising the opportunity with minimised apparel spending, by Kristen Classi-Zummo. - From accessories to necessities, by Beth Goldstein.
- Footwear will need to keep pace with changing demands, by Beth Goldstein. - The NPD Group announces winners of US outdoor sports retail performance awards. - Switzerland: Richemont reports sales increase of 8% for 3rd quarter and 18% for 9 months to end December.
10 Fashion
- Stadio end-of-year show.
16 Sustainability
- 'Plastics industry, government and society all want the same thing: to reduce plastic pollution,' says Plastics SA's Anton Hanekom.
- Concerns grow over harmful substances used for water, oil and dirt repellent properties in clothing, says SGS.
14 Headlines with Tinashe Mandirahwe
- Clarks put under microscope and found wanting.
- Kiwi Shoe Polish UK goes the way of the Dodo.
- Adidas loses against Thom Browne in 'stripe showdown'.
16 Notice Board
- Long service for NBCLI's Ashley Pillay.
- Obituary: David Buckingham of Royal Adhesives.
- Obituary: Reg Hattingh, commission agent.
18 Trade Statistics
- SA footwear and accessories trade statistics for November 2022.
Advertisers in this Issue
Evolution Engineering (01), Freestyle Genuine Handcrafted Leather (OFC), Italtan (07), S&V Calendar (09), S&V Directory (11), Saddler Belts (04), SAFLEC (06), Softer/Jumbo Footwear (02).
They Said It
"Another year and another grey hair on my side..." - Geraint Beacham, Hi-Tec South Africa, Cape Town, SA.
Directory entries updated last week
Ace Shoe Components, Pinetown, KZN, SA.
Alan D. Jackson, Durban, KZN, SA.
Anette Thompson & Associates, Durban, KZN, SA.
Arena Trims, Pinetown, KZN, SA.
Brando Leather Goods, Germiston, Gauteng, SA.
Cruz Footwear, Durban, KZN, SA.
Spen Industrial Machinery, Durban, KZN, SA.
Telmo Research, Durban, KZN, SA.
New subscribers last week
Jack Bassage, Myganox, Pietermaritzburg, KZN, SA.
Martin Mpemi, General Manager, Jaguar Shoes (Pty) Ltd, Maputsoe, Lesotho
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
30/01/1948: Pravin Mistry, Super Star Fashions, Vereeniging, Gauteng, SA.
31/01/1961: Andy Williams, Agent, Cape Town, W. Cape, SA.
31/01/1971: Ashley Benjamin, NULAW, Durban, KZN, SA.
01/02/1947: Rob Steadman, National Trimmings Specialists, New Germany, KZN, SA.
01/02/1952: Thomas Bredenkamp, Promark, Pretoria, Gauteng, SA.
01/02/19??: Elaine Smith, the DTI, Pretoria, Gauteng, SA.
01/02/1969: Noeline Kemp, Knots, Bloemfontein, Free State, SA.
02/02/1941: George Geyser, Dancewell, Durban, ZN, SA.
02/02/1946: Chris Schroeder, retired, formerly PMC Group, Pinetown, KZN, SA.
02/02/1965: Rod Oliveira, Rodrigo Shoes, Durban, KZN, SA.
03/02/1963: Vusumzi Mabuto, NULAW, Port Elizabeth, E. Cape, SA.
03/02/1965: Grant Daniel, retired, formerly Mendelson Frost, Johannesburg, Gauteng, SA.
30/01/2021: Manie Booysen, former MD of Seton SA, Nigel, Gauteng, SA.
31/01/2016: Rudi Geyser (b. 11/03/1937), EVA Industries, Durban, KZN, SA.
02/02/2018: Sam Foster, retired, formerly Barker Footwear, Cape Town, W. Cape, SA.
02/02/2021: Bernhard Manock (b. 07/07/1933), Manock Naturals, Durban, KZN, SA.
03/02/1977: Ismail Adam Moosajee (b. 28/08/1927), Seltex, Johannesburg, Gauteng, SA.
05/02/1999: Adolf Vymetal (b. 30/05/1916), Zimbabwe Bata Shoe Co., Gweru, Zimbabwe.
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.
Fairs updated last week
13-15 March 2023: APLF Dubai, Dubai World Trade Centre, Dubai.
01-03 May 2023: 15th International Apparel & Textile Fair (IATF), Dubai World Trade Centre, Dubai.
29-31 August 2023: All China Leather Exhibition (ACLE), Shanghai, China.
Exchange rates
Note: For previous rates, see HERE
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 02/01/2023 |
R18.12 |
R20.49 |
R17.00 |
R2.46 |
| 09/01/2023 |
R18.24 |
R20.73 |
R17.05 |
R2.51 |
| 14/01/2023 |
R18.22 |
R20.57 |
R16.82 |
R2.50 |
| 21/01/2023 |
R18.60 |
R21.21 |
R17.13 |
R2.52 |
| 28/01/2023 |
R18.71 |
R21.32 |
R17.21 |
R2.53 |
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 02/01/2023 |
13.58 |
15.35 |
12.74 |
1.84 |
| 09/01/2023 |
13.66 |
15.52 |
12.77 |
1.88 |
| 14/01/2023 |
13.68 |
15.44 |
12.63 |
1.88 |
| 21/01/2023 |
13.86 |
15.81 |
12.77 |
1.88 |
| 28/01/2023 |
13.87 |
15.81 |
12.76 |
1.88 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 02/01/2023 |
1091.10 |
1233.25 |
1023.76 |
148.37 |
| 09/01/2023 |
1080.34 |
1228.82 |
1010.44 |
149.29 |
| 14/01/2023 |
1099.92 |
1241.00 |
1014.68 |
151.26 |
| 21/01/2023 |
1104.33 |
1259.40 |
1017.20 |
149.95 |
| 28/01/2023 |
1108.53 |
1262.94 |
1019.69 |
150.37 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 02/01/2023 |
19.27 |
21.78 |
18.08 |
2.62 |
| 09/01/2023 |
19.53 |
22.21 |
18.27 |
2.69 |
| 14/01/2023 |
20.05 |
22.62 |
18.49 |
2.75 |
| 21/01/2023 |
20.12 |
22.95 |
18.53 |
2.73 |
| 28/01/2023 |
20.69 |
23.58 |
19.03 |
2.80 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
CNY ¥ |
Official US$ |
| 02/01/2023 |
385.83 |
435.99 |
52.45 |
671.44 |
| 09/01/2023 |
386.94 |
439.98 |
53.42 |
704.17 |
| 14/01/2023 |
392.30 |
442.61 |
53.95 |
711.89 |
| 21/01/2023 |
392.93 |
448.15 |
53.35 |
746.61 |
| 28/01/2023 |
393.43 |
448.23 |
53.36 |
783.19 |
Note: For previous rates, see HERE
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (26 January 2023) - The current average hide price slightly increased by 0.6% to R4.18/kg from R4.16/kg a week ago. The current price is 0.8% higher than the average price a month ago and 25.8% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R3.60 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:
JCP Leathers, Pretoria, Gauteng, SA. Wool-on sheepskin products manufacturer.
JCP Workwear & Lifting, Richards Bay, KZN, SA. PPE distributor.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: February 6, 2023.
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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