S&V Weekly Newsletter Vol.10 No.42, October 14 2024

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Footwear imports up 35% in first 8 months

Umhlanga, KZN, SA - Footwear imports rose by nearly 35% between January and August, according to figures provided by the Southern African Footwear & Leather Industries Association (SAFLIA), with safety footwear imports particularly high.
     “In that period, there has been an increase of total footwear Imports (by pairs) into SA of 34.48%, and on the safety side alone an increase of 45.38% compared to the same position of last year,” SAFLIA director Jirka Vymĕtal said.
     “Local production for the same period has fallen by 16.9%.
     “Exports grew by 1.86% (off a very low base – only by 30,000 pairs – mainly safety) but down 2.13% on value,” he said.
     He did not have the breakdown of local production between fashion and safety footwear, but he expected both sectors to be hard hit.
     “We’re engaging with everyone we can – unions, retailers/chains and government – to make local production more attractive for customers, more viable for manufacturers, and a bigger employer to assist government and the country,” he said. “At the moment, it’s an extremely difficult environment.”

Cross Trainer: Creditors’ meeting scheduled

Pretoria, Gauteng, SA – The first creditors’ meeting for Frame Leisure Trading (Pty) Ltd t/a The Cross Trainer, XTrend and XKids, in business rescue, will be held on 24 October 2024, according to Zandri van der Merwe of business rescue practitioners Corporate Business Rescue Advisory.
     The company has around 30 stores, concentrated in Gauteng, with smaller numbers in North West Province, Limpopo, Mpumalanga, Free State and Western Cape. It specialises in sport fashion. It carries brands including Adidas, Fila, New Balance, Nike, Reebok, Under Armour, U.S Polo Assn., and Vans.
     It has been in business rescue since 14 August.

Drip to close

Johannesburg, Gauteng, SA – According to reports, sneaker minichain retailer Drip Footwear is being liquidated. It was sued early this year by billboard company WideOpen Platform for nonpayment of R20 million. It has reportedly laid off staff and will be closing 14 stores.

AVI: Turnover up, profit down

AVI 2024 annual report 01 July 2023 to 30 June 2024

Footwear and Apparel (including Spitz, Green Cross and Gant)
Revenue increased by 3,6% to R1,76 billion due to higher selling prices required to ameliorate the impact of a weaker Rand and protect margins. This was partially offset by reduced apparel sales and a reduction in footwear sales volumes. Like-for-like revenue, excluding stores opened and closed in the last 12 months, was 5,0% up on last year. Operating profit decreased from R354,8 million to R340,8 million, with the operating profit margin remaining healthy but decreasing from 20,9% to 19,4%.
The first semester was well supported by a strong December, earlier receipt of stock and effective retailing which saw footwear volume growth across both the Carvela and Lacoste footwear brands. The second half was particularly challenging with sales volumes negatively impacted by increasing pressure on consumer disposable income exacerbated by increased competitor discounting, especially within clothing. Increased competition necessitated an element of discounting within the apparel business to manage inventory levels.
Gross profit margins were slightly lower with pressure from a weaker Rand not fully recovered. Selling and administrative costs were effectively managed with increases lower than inflation. The continuous focus on the efficiency of our retail footprint to optimise profitability resulted in the closure of underperforming stores over the year with restructuring initiatives undertaken in the latter part of the year expected to provide benefits into 2025. Three new stores were opened during the year.

VF Corporation investor day on 30 October

Denver, Colorado, U.S. – VF Corporation, owner of Vans, The North Face, Timberland, and Dickies, among other brands, will host the first of 2 investor events on Wednesday 30 October 2024 at 10:00 a.m. ET. At the event, executive management from VF will present on corporate strategy and the building blocks for a return to value creation.
The presentation will be broadcast live on the Internet, accessible at ir.vfc.com. For those unable to listen to the live broadcast, an archived version will be available at the same location.

In case you missed it!

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

CLICK HERE TO VIEW IT ONLINE

S&V Footwear & Leather Goods Magazine Vol90 No9 September 2024

IN THIS ISSUE:

03 Upfront
- International fast fashion retailer H&M, which does source some raw materials from SA, says it is serious about sustainability and about talking to local manufacturers about sourcing finished goods.
- Small West African state Benin is making branded garments for export.
- Management changes at Bata SA.

11 Headlines with Tinashe Mandirahwe
- Clarks’ Indian departure – what went wrong?
- Investor lawsuit hits Lulelemon.
- Comfort is what the market is demanding.

19 Export & Trade
- Italian Trade Agency sponsors SA visit to Milan fairs.

21 Noticeboard
- SAFLIA AGM marks the organisation’s 80th anniversary.
- National Bargaining Council bids farewell to outgoing general secretary Gerald Naidoo.



Advertisers in this Issue
Arena Trims (20), BBF Safety Group (04), Freestyle Genuine Handcrafted Leather (02), FrontierCo/Busby (09), Haesloop Agencies (14), Kaliber Safety Footwear/For the Motor Industry/Safety Boots (06, 08), Kaytex Belts (12), Leather Finishing Products (16), Lemaitre (10), Palm Footwear (OFC), Saddler Belts (07), SAFLEC (13), S&V Calendar (01), S&V Directory (17), Shotland Packaging (18).
 

They Said It

"I’m now 77 and trying to have some fun before the lights are switched off." - A correspondent explaining why he wouldn’t be available.

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

Saroj Govender, Quality Manager, Angel Footwear, Durban, South Africa
Wouter, Sales & Marketing, YKK SA, Johannesburg, South Africa
Jacqueline, Senior Administrator / Case Management Officer, National Bargaining Council of the Leather Industry of South Africa, KZN, South Africa
Anil Lazarus, SHEQ General Manager, Grindrod Logistics, KZN, South Africa
GianPaola Pedretti, Riva del Garda, Italy
Glen Mitchell, Trademitch, Cape Town, South Africa

Birthdays this week

14/10/1947: Rodney Bryant, A Greenaways, Cape Town, W. Cape, SA.
14/10/1963: Siraaj Ahmed Hassim, Classic Hawkers Centre, Laudium, Gauteng, SA.
14/10/1964: Shirleen Joubert,? formerly Edcon (closed), Durban, KZN, SA.
15/10/1949: Marianne McCulloch, retired, formerly Bolton Footwear, Oudtshoorn plant, W. Cape, SA.
15/10/1956: Joseph Chiang, Sogo Trading, Cape Town, W. Cape, SA.
15/10/1967: Mohammed Reyaz Moosa, Selrite Fashions, Kempton Park, Gauteng, SA.
15/10/????: Corrie Jurkewitz, Shoes & More, Gansbaai, W. Cape, SA.
16/10/1946: Hannes Harding, FC&T Supplies, Pretoria, Gauteng, SA.
17/10/1952: Elsa Carminati, Carmin & Co., Johannesburg, Gauteng, SA.
17/10/1968: Mehmood (Joe) Mohamed, Rodrigo Footwear, Durban, KZN, SA.
18/10/1967: Chetan Jeram, Concept Distributors, Pretoria, Gauteng, SA.
19/10/1966: Elize Strauss, Shoe ‘n Do, Reitz, Free State, SA.
18/10/????: Justin Wallis, SHEQ Safety, Randfontein, Gauteng, SA.
19/10/????: Tony Jelinski, retired, formerly Everflex, Pinetown, KZN, SA.
19/10/1944: Peter Manley, Secure & Safe Supplies, Durban, KZN, SA.
19/10/1965: Björn Jönsson, emigrated, formerly Leather Systems SA, Johannesburg, Gauteng, SA.
20/10/1943: Daya Kisten Pillay, Topline Manufacturers, Durban, KZN, SA.
20/10/1946: Steve Bassingthwaighte, Steve Bass Agency, Cape Town, W. Cape, SA.
20/10/1955: Dave McDonald, left the industry, Durban, KZN, SA.
20/10/1957: Steve Dai, Bruce & Jason Trading, Cape Town, W. Cape, SA.
20/10/1961: Stefan van As, Le Croc, Brits, NW Province, SA.

In memoriam this week

15/10/????: Walter William ‘Wally’ Ballard (b. 28/11/1948), Reptile Trading Co, Cape Town, W. Cape, SA.
15/10/2016: Des de Wet (b. 03/12/1940), agent, Amanzimtoti, KZN, SA.
17/10/2005: Barney Dodo(b. 11/04/1914), Edworks group (closed), Johannesburg, Gauteng, SA.
18/10/2000: Manuel da Costa (b. 13/09/1930), the Superior Footwear Group [closed], Harare, Zimbabwe.
18/10/2016: Lenny Jacobs (b. 27/07/1946), Lenny Jacobs Sales, Johannesburg, Gauteng, SA.
19/10/2000: Bill Beckley, (b. 20/07/1927), agent, East London, E. Cape, SA.
19/10/2022: Odelle Hadnum (b. 17/06/1972), Chillisource, UK, formerly Durban, 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

Master Movers (Pty) Ltd, Germiston, Gauteng, SA.
Master Movers (Pty) Ltd, KZN branch, Ballito, KZN, SA.
Master Movers (Pty) Ltd, W. Cape branch, Cape Town, W. Cape, SA.
Oh Sole Footwear (Pty) Ltd, Pretoria, Gauteng, SA.
SA Meat industry Company (SAMIC), Pretoria, Gauteng, SA.

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 (10 October 2024) - The current average hide price increased by 1.09% to R2.804/kg from R2.774/kg a week ago. The current price is 0.24% lower than the average price a month ago and is 16.79% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.75 Maximum price: R3.07. 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:

Sa Ostrich Business Chamber, Oudtshoorn, W. Cape, SA. Industry association.
Shoe Shack, Pretoria, Gauteng, SA. Footwear store.

THIS WEEK LAST YEAR!

New directions as historic business dries up

TFG CFO resigns

Groundcover GM retires

Extracts from Piper Sandler 46th semi-annual Generation Z survey of 9193 US teens

READ IT HERE - S&V Weekly Newsletter Vol.9 No.42, October 16 2023

THIS WEEK FIVE YEARS AGO!!

Retail last week: Comment from 4 retailers on Saturday

Has Nike's decision to close accounts affected you?

21st UITIC footwear congress will take place in China in 2021

Vinyls conference

READ IT HERE - S&V Weekly Newsletter Vol.5 No.42, October 21, 2019

Contact us

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

Next newsletter: Monday October 21, 2024. Ad and editorial deadline Friday 18 October.

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

Our website www.svmag.co.za