S&V Weekly Newsletter Vol.10 No.33, August 12 2024

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Trading conditions: Signs of late upswing

Suliman Saloojee, Chommie’s Outfitters/Balatino's/Jomo's
Westonaria, Gauteng, SA – Trading conditions are improving slightly. Winter arriving late had a bad effect on retail, because retailers have started sales, reducing margins, and at the same time being overstocked.
      However, I think the outlook for December is good, especially with government pension funds adding to disposable income.

Hadley Craig, Cape Knife Cutting
Howick, KZN, SA – It’s quite quiet at the moment. We’re working a bit of short time, but ticking along.
      The year started well, but there seems to be uncertainty globally. Everything depends on something else.
      We have a wide range of products and services. The leather backgammon sets do well in winter, and we have a couple of customers who market them. We’re making menu covers, which is tourism dependent.
      On the cutting side, I expect business to pick up soon. Our hat making customers will be producing caps again for summer – they’ve been making beanies during winter.

Alistair Watt, Bresan Footwear
Cape Town, W. Cape, SA – June and July have been challenging on all fronts, both CMT and our fashion side are down on previous years. 2024 had started on an up note as we had finally settled from our factory move, but things started to slow as we moved closer to the elections and remained slow thereafter. I can't comment on CMT going forward as we can't see our customers' order book, but on our fashion side we are seeing an improvement in the order situation from September onward, but this is way later than usual.

Temu/Shein small parcels: SARS ruling will disappoint CTFL sector

      Contrary to expectations, the import duty on Temu/Shein small parcels will not yet be increased from the current 20%, although VAT will be added from 01 September.       In a press release on Thursday, the South African Revenue Service (SARS) said it “noted legitimate concerns that have been expressed in the importation of several of goods, especially clothing, via e-Commerce by a number of importers who have not been paying the obligatory Customs duties and VAT on these imports, resulting in unfair competition with other industry players”.
      However, although the CTFL value chain had expected SARS to increase the duty to 45% (the same as the import duty on clothing. The import duty of most categories of footwear and leather goods is 30%), there is no mention of a duty increase in the release.
      SARS said the World Customs Organization (WCO) grouped eCommerce goods into 4 categories, ranging from ‘no commercial value’, ‘low commercial value below a specified de minimis threshold’, ‘low commercial value above de minimis, but below full declaration value threshold’, and ‘high value consignments (full goods declaration) – Consignments not falling under the three categories described above and includes consignments containing goods that are subject to restrictions. Normal release and clearance procedures, including payment of duties and taxes, apply’.
      SARS said the changes to be implemented are:
• The introduction of VAT in addition to the current 20% flat rate Customs duty by 1 September 2024 as an immediate interim measure.
• The reconfiguration of the current 20% flat rate into the WCO regime for the first 3 broadband categories with appropriate duty rates, by 1 November 2024.
      The National Clothing Retail Federation of SA (NCRF) said it was surprised and disappointed.
      “This is a mystery to us,” said executive director Michael Lawrence. “SARS has had 2 years to investigate this issue. We have offered them any and every type of assistance they might have required to reach a decision. We have no idea why it has taken so long.”
      According to the release, “SARS Commissioner Edward Kieswetter said SARS will partner with the Department of Trade, Industry and Competition (DTIC), as the custodian of the country’s trade policy and development, as well as other industry players, to build public trust by seeking opportunities to level the playing field to protect local industries and create business opportunities for economic growth. He said that SARS will resort to “the greater use of data, artificial intelligence, machine learning and algorithms to better facilitate trade while minimising risks to the economy”.

They Said It

"Anyone know what time International Women’s Day finishes? I’m starving." - A widely circulated WhatsApp message on Friday.

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

New subscribers last week

Mick Taylor, Cape Town, South Africa

Birthdays this week

12/08/1962: Alyssa Joubert, Ally Shoes, Hermanus, W. Cape, SA.
13/08/1969: Clinton Hoar, XS Denim, Durban, KZN, SA.
15/08:19??: Bob McDonald, retired, formerly Budget Footwear [closed], Durban, KZN, SA.
16/08/1948: Bill Zurich, retired, formerly Shoeperama, Pretoria, Gauteng, SA.
16/08/1948: Chris Williamson, Trader Vic, Johannesburg, Gauteng, SA.
16/08/1957: Paul McMillan, Reflex, George, W. Cape, SA.
16/08/1969: Rajeev Pattundeen, Palm Footwear, Durban, KZN, SA.
17/08/1939: Mike di Lembo, retired, formerly Villani Shoes, Johannesburg, Gauteng, SA.
17/08/1959: Berkly Lupton, agent, Johannesburg, Gauteng, SA.
17/08/1972: Alistair Watt, Bresan Footwear, Pietermaritzburg, KZN, SA.
18/08/19??: Robbie Blom, Leisure Holdings, Durban, KZN, SA.
18/08/1958: Mike Wallace, agent, Cape Town, W. Cape, SA.
18/08/1961: Braam Pretorius, ?, formerly Watson Shoes, Great Brak River, W. Cape, SA.
18/08/1971: Rooksana Moosa, Mozak Shoes, Amanzimtoti, KZN, SA.

In memoriam this week

12/08/2022: Essop Kader (b. 01/10/1954), Kaytex Belts, Pretoria, Gauteng, SA.
15/08/2011: Geoffrey Leonard Keane-Murphy (b. 08/03/1927), consultant, Durban, KZN, SA.
15/08/2011: Newton Wade (b. 16/06/1925), Panama Shoes [closed], Durban, KZN, SA.
15/08/2015: MH Moosaji, Trendsetters, KwaDukuza, KZN, SA.
16/08/1997: Ed Aubin, agent, Port Elizabeth, E. Cape, SA.
16/08/2012: Margaret Jordaan (b. 15/01/1931), Centra-Cast, Durban, KZN, SA.
17/08/2016: Alan Sykes (b.17/10/1945), Western Tanning [now Mossop Western Tanning] and Corium [closed], Wellington, W. Cape, SA.
17/08/2020: Manilal Jeeva (b. 23/07/1944), P. Jeeva Outfitters, Pretoria, Gauteng, SA.
18/08/2016: Christian Meyer (b. 16/12/1936), Jack & Jill [closed], Port Elizabeth, E. Cape, 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) (buying)

Source: https://www.rbm.mw/

4. Zambian Kwacha (ZMW) (buying)

Source: https://www.boz.zm/

5. Zimbabwe Dollar (ZWL$) (average) / Zimbabwe Gold (ZiG)

Source: Source: https://www.rbz.co.zw/

Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (08 August 2024) - The average hide price decreased by 1.56% to 2.743/kg from R2.787/kg a week ago. The current price is 14.48% lower than the average price a month ago and 10.3% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.26 Maximum price: R3.00. Price movements will be highly influenced by developments in the status of our animal diseases. 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:

Tack & Tuck, George, W. Cape, SA. Saddlery and tack shop.
Tactile Room, Parys, Free State, SA. Clothing and lifestyle boutique.

THIS WEEK LAST YEAR!

Winter was fair, wait-and-see for summer

Sports goods ‘a tricky space’

Analysts ‘upbeat’ over new Wolverine CEO

READ IT HERE - S&V Weekly Newsletter Vol.9 No.33, August 14 2023

THIS WEEK FIVE YEARS AGO!!

Retail last week: Comment from 4 retailers on Saturday

Truworths: Revenue up, profit down

Choppies: Exiting SA

Export Charter: SAFLIA 'a key supporter'

READ IT HERE - S&V Weekly Newsletter Vol.5 No.33, August 19, 2019

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

Next newsletter: Monday August 19, 2024. Ad and editorial deadline Friday 16 August.

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