S&V Weekly Newsletter Vol.9 No.36, September 4 2023

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Outdoor: Awaiting seasonal upturn

Sasha Nieuwoudt, manager/buyer, Camp & Climb
Cape Town, W. Cape, SA - Trade is quiet at the moment, but winter is always quieter for us, and we expect it to pick up with summer.
      We get a lot of tourists at our Paarden Eiland store, and they tend to kit themselves out. Local customers at our other stores tend to buy what they need, as they need it.
      Sourcing has improved. We buy from distributors, and we import ourselves. Some of the canvas goods are locally made.

Comfort: Forced change working out ‘quite nicely’

Bruce Wilson, member, Hotter Comfort Concept SA cc
Cape Town, W. Cape, SA - In December last year we took the decision to stop supplying retailers, instead becoming a full-time retailer ourselves. It was a decision forced on us by a combination of circumstances, and not one we took lightly.
      Our numbers dropped right down during covid, but the principal reason was the exchange rate which, combined with a sharp price increase from the Hotter factory, meant there was just no wholesale margin.
      Hotter UK had also had a big change when it went into administration – business rescue – on 18 July last year, and was bought by WoolOvers Group 2 days later – an indication that it was still a very desirable brand.
      We already had a shop at Access Park in Kenilworth, and an online store, which has taken off quite nicely. As from July this year, the new Hotter range is available only from these stores. We are looking to open a second store in Centurion, which is good Hotter territory.

Woolworths Holdings Limited - Audited Group Results for the 53 weeks ended 25 June 2023

‘Underlying health of fashion division improving’

For the full report, go here
Cape Town, W. Cape, SA - WOOLWORTHS FASHION, BEAUTY AND HOME ('FBH')
We continue to make significant progress in improving the underlying health of our Fashion, Beauty and Home business. Turnover and concession sales grew by 8.9% and by 8.3% on a comparable store basis for the year. Whilst H2 sales growth of 6.7% slowed relative to the first half (5.6% in comparable stores), it was notably ahead of the market, notwithstanding our ongoing strategic initiatives to rationalise SKUs, promotional activity, and unproductive space. Price movement of 11.6% remained positively impacted by the ongoing focus on full-price sales and the continued reduction in markdowns. Net trading space was largely unchanged over the prior year.
Online sales grew by 3.8% and contributed 4.3% of South African sales.
      Continued focus and further improvement in full-price sales and markdown metrics supported gross profit margin gains of 90bps to 48.5%, notwithstanding inflationary supply chain and loadshedding costs. Expense growth was 6.8%, with store cost growth contained to 4.2%, as we continued to reduce unproductive space.
      Adjusted operating profit increased by 21.3% to R1 953 million, resulting in an operating margin of 13.2% for the current year, compared to 11.9% in the prior year. Excluding the impact of loadshedding, adjusted operating profit grew by 24.8%, implying an operating margin of 13.6%.

Bata moves head office after 50 years

Durban, KZN, SA (31 August 2023) - After five decades at its Pinetown facility, Bata South Africa has relocated its head office to the corporate hub of La Lucia, north of Durban. According to a release, “this strategic move aligns with Bata South Africa's future growth strategy”.
      The distribution centre remains in Hammarsdale and the factory in Loskop.

Move

Johannesburg, Gauteng, SA - Karen Lewis-Williams, previously brand and sales manager for Plum Footwear, has joined the Intershu group.

In case you missed it!

The August issue of S&V Footwear & Leather Goods Magazine

CLICK HERE TO VIEW IT ONLINE

S&V FOOTWEAR & LEATHER GOODS MAGAZINE VOL89 No8 August 2023

IN THIS ISSUE:

03 Upfront
- PVC: Globally challenged, locally confident. SAVA CEO Monique Holtzhausen explains the opportunities and challenges facing the only plastic partly made in South Africa, and the footwear industry’s disproportionate role in recycling.

05 Profile
- Seadoone Shoes: Supplying retailers with their own styling, no minimums, high quality and competitive prices.

06 Headlines with Tinashe Mandirahwe
- Capitalizing on movie influence: How Barbie helped skyrocket Birkenstock’s demand.
- California shop owner shot dead over LGBTQ+ pride flag display.

09 Trade Fairs
- KZN Industrial Technology Exhibition, Durban, KZN, SA.
- Comrades Expo, Durban, KZN, SA.

10 SAFLEC AGM and Dinner
- Chairman stresses the need for ‘unity in diversity’ at the AGM, and the SA Footwear & Leather Export Council (SAFLEC) and the Ethekwini Footwear & Leather Cluster (EFLC) together arrange a networking dinner for all sectors of industry and all tiers of government.

13 Trade Statistics
- South Africa: June imports and exports of footwear and accessories, provided by SARS.



Advertisers in this Issue
APLF (08), Berzacks (10), Evolution Engineering (this page), Freestyle Genuine Handcrafted Leather (OFC), Royal Adhesive Industries (02), Saddler Belts (06), SAFLEC (11), S&V Directory (13).

They Said It

"It was my birthday recently and I decided to check in your birthday column if I still have a birthday and got a huge skrik when I did not see my name, so immediately scrolled down to the in memoriam column (where many of my friends are now) to see if I am still around. Much to my relief it seems I am still here, so I got up and poured myself a double. Make that 2." - Bill Zurich, retired retailer, formerly Shoeperama, Pretoria, Gauteng, SA. His birthday was 16 August , when he turned 75. “Presents are always welcome,” he added.

New subscribers last week

Shaun Austin, Business Development Director, Hypenica, Cape Town, South Africa
Karen, Rangebuilder, Intershu, Germiston, South Africa
Bokamoso Mmapatsi, Dome Garden Pty Ltd, Phakalane, Botswana
Alex Gordon, Sales, Novita, Shallcross, KZN, South Africa
Saadiyah Farouk, Buying, Asmalls Clothing, Pietermaritzburg, KZN, South Africa

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

Birthdays this week

04/09/1952: Julian Pledger, left the industry, formerly Faith Footwear [closed], Port Elizabeth, E Cape, SA.
04/09/1963: Peter Crouch, Crouch Footwear, Pietermaritzburg, KZN, SA.
05/09/1954: Abdul Samad, Bob’s Shoe Centre, Johannesburg, Gauteng, SA.
05/09/1989: Erlank van Zyl, Ostriland, Citrusdal, W. Cape, SA.
06/09/1951: Abdur Rahim 'Raymie' Bava, A.R. Bava & Co., Polokwane, Limpopo, SA.
06/09/1953: Tony Stottelaar, Leather Systems SA, Port Elizabeth, E. Cape, SA.
06/09/1957: Yusuf Bhabha, Shoe Boutique, Secunda, Mpumalanga, SA.
06/09/1979: Jayson Govender, Prolamm cc, Durban, KZN, SA.
07/09/1981: Mohamed A Lalla, Tysons Shoe & Clothing, Vereeniging, Gauteng, SA.
07/09/1972: Karl Flowers, Authenticae, Northampton, UK, formerly LIRI, Grahamstown, E. Cape, SA.
08/09/1954: Denis Tuchten, formerly Shoe Connection, Cape Town, W. Cape, SA.
08/09/1960: Paulo da Silva, emigrated, formerly Bambi Shoes [closed], Durban, KZN, SA.
08/09/1970: Kevin Naidu, Shenlea Agencies, Durban, KZN, SA.
09/09/1929: Bill Hoffman Erlings, Johannesburg, Gauteng, SA.
09/09/1943: Simon Liu, emigrated, formerly MCA Marketing [out of footwear], Midrand, Gauteng, SA.
09/09/1952: Abisha Tembo, formerly the DTI, now Beier Industries, Pinetown, KZN, SA.
09/09/1953: Fernando Santos, Bolton Footwear, Cape Town, W. Cape, SA.

In memoriam this week

04/09/2012: Judi Moakes (b. 13/04/1960), in Northampton, formerly secretary, SLTC (SA Section).
08/09/2017: Roger Benjamin (b. 17/08/1945), agent, Port Elizabeth, E. Cape, SA.
09/09/2000: Erik Peter Rormose (b. 11/03/1934), Bulley’s Tannery/Coja Tannery/Silverton Tannery/KwaNdebele Tanning/Kembe Estates, Gauteng, SA.
09/09/2018: Errol Smith (b. 07/02/1946), ENS Machinery, 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

Anwary’s (Pty) Ltd, Butha-Buthe, Lesotho.
Leather Association of Tanzania Cum Production & Training Centre – Morogoro, Tanzania.
Leather Association of Tanzania Cum Production & Training Centre – Dar es Salaam, Tanzania.

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 (31 August 2023) - The average hide price decreased by 0.1% to R3.058/kg from R3.06/kg in the previous week. The current price is 10.1% lower than the average price a month ago and 32.7% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.75 Maximum price: R4.50. 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, and Zama Sangweni, 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:

Kevro (Pty) Ltd, Johannesburg, Gauteng, SA. Corporate gift and workwear retailer.
Keystone Apparel (Pty) Ltd, Johannesburg, Gauteng, SA. Brand distributor.

Contact us

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

Next newsletter: September 11, 2023.

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

Our website www.svmag.co.za