S&V Weekly Newsletter Vol.11 No.6, February 10 2025

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Component suppliers: Current order situation

Leather: Early days, but lots of queries

Rowan Allison, director, Alleather Sales
Durban, KZN, SA – It’s still quiet, although it seems to be picking up, and there are lots of queries. There has been a swing to synthetics. Factories will be cutting winter now, and some have very few orders, some are buzzing.
     The factories making leather are selling to mini-chains and independents, mostly for men’s, and also to a few chains that I know of – Edgars, Truworths and Woolworths – which are also buying some leather kiddies’ and ladies’ shoes.

Synthetics: As always, winter is guesswork

Shaun Ribbink, member, A. Greenaways (Natal)
Durban, KZN, SA – Very few people make synthetic upper boots, so for us, winter is about pumps. Not many factories have orders – which is nothing out of the ordinary – so we estimate what to put into stock. When they do get orders, either we have it, or we don’t.

News

Zambia Bata: Sales up, and second gumboot machine installed

Zambia Bata Shoe Co. Plc last year saw sales grow 14% year-on-year, “and we expect that to grow to 15% in 2025,” MD Octavia Bwalya Sakala said last week.
     Zambia Bata is a retailer, wholesaler and manufacturer, with around 60 stores,
     It imports a broad range of Bata brands.
     It manufactures PVC gumboots, and in November installed a second, 2-colour machine to make steel toe cap gumboots.

Change at Prime Sole

Harare, Zimbabwe – After 16 years with the company, former Prime Sole GM Michelle Wilson has left “amicably”, according to director Jose Leite. She has also left the industry. Her place has been taken by Owen Nyahangare, a long-serving member of staff of sister company Marelli Shoes.

Numbers

2024 footwear stats full year

We previously published footwear imports and exports January-November 2024 compared to the same period 2023. This table now includes December figures.

Figures compiled by SAFLIA based on Stats SA database.

2024 clothing stats full year

Figures compiled by Paul Theron of Apparel Manufacturers of SA (AMSA).

Herewith the imports and export data for Jan-Dec 2024.
Total Import value grew by 7.7%.
Total Import value is R36.0 billion.
Total Import volumes grew 7.1%.
China still main source country for imports (45% of total).
BELN account for 17% of total imports.


Total Export value rises 8.4%.
Total Export value is R 7.8 billion.
Total Export volumes increase 13%.
BELN account for 74% of total exports.
Namibia is the major destination country for exports

Financial results

Pepkor Holdings Limited: Voluntary trading update for the 3 months ended 31 December 2024

‘RLC figures show consistent market share growth’

Extracts from update

Cape Town, W. Cape, SA (03 February 2025) – Pepkor delivered strong results for the 3 months ended 31 December 2024. Group revenue from continuing operations increased by 12.1% to R26.7 billion.
     Performance was driven by robust sales growth and market share gains in traditional retail with significant growth sustained in fintech. Gross profit margin improved, mainly driven by the growth in the Fintech segment.

TRADITIONAL RETAIL

Group sales increased by 9.5% and like-for-like sales increased by 7.3% for the quarter. In Southern Africa (excluding PEP Africa and Avenida), like-for-like sales increased by 9.6%. Outside Southern Africa (PEP Africa and Avenida), like-for-like sales increased by 4.4% in constant currency but decreased by 14.6% in rand-terms.

Enhanced product availability, diligent execution by retail brands and a more favourable consumer environment in South Africa led to strong sales growth. According to Retailers Liaison Committee (RLC) data for December 2024, Pepkor outperformed the market, gaining market share over 3-, 6-, and 12-month periods.
     The quarter began with rapid sales growth during the seven-week period ended November 16, 2024, as highlighted in Pepkor's FY24 results.
     Robust trading continued in both PEP and Ackermans subsequent to this, delivering double-digit sales growth for the quarter with strong like-for-like sales growth. PEP and Ackermans, in aggregate, account for 66% of group sales.
     Trading in Speciality softened during the remainder of the quarter as footwear brands continue to face intense competition. Strong trading was achieved in the recently launched Refinery Junior concept.
     In Pepkor Lifestyle, sales growth accelerated further, driven by the Home division which achieved 15.1% sales growth. The Tech division delivered 2.0% sales growth off a strong prior period base and in a highly competitive appliance and consumer electronics market.
     Outside Southern Africa, trading momentum remained strong in PEP Africa but currency devaluation impacted results in rand-terms.
In Brazil, Avenida's like-for-like performance was impacted by the maturity profiles of new stores, in addition to challenges in merchandise and supply chain expansion while a weaker Brazilian currency further impacted results.
     Clothing, footwear and home (CFH) retail selling price inflation in PEP, Ackermans and Speciality (in aggregate) amounted to 7.6% for the quarter.
     Group cash sales increased by 6.2%. Credit sales increased by 30.9%, driven by the implementation of the group's retail credit interoperability strategy across its South African-based CFH retail brands. The overall group credit sales mix rose to 16% from 13% in the same quarter last year.
     During the quarter, 95 new stores were opened. On a net basis, the retail store base expanded by 76 new stores to 5 975 stores as at 31 December 2024. The group remains on track with its organic store expansion strategy and plans to open 250 to 300 new stores in FY25.

OUTLOOK

In the first three weeks of January 2025, group sales increased by 17.8% as trading momentum strengthened across all retail businesses. This was underpinned by a very successful back-to-school season in PEP and Ackermans, improved performance in Speciality and Lifestyle in addition to a positive change in the trajectory of Avenida's performance.
     The strong performance in the first quarter, combined with continued sales momentum into January 2025 and the ongoing successful execution in fintech, positions the group well to deliver solid results in FY25.

They Said It

"Yes, but it’s a bit temperamental." - Deborah Taylor, MD, Sustainable Leather Foundation, in response to a question as to whether she has an off-switch. The SLF is a UK-based organisation which offers accreditation to tanneries and other businesses involved in the production of leather. No matter where she is (in SA, for the next week or so), or how busy she is, she manages to get me an article, by due date, for S&V African Leather.

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

Nad, Designer, Style Step Manufacturers, Durban, South Africa
Jane Moodley, Shipping Administrator, Dangee Carken, Marlboro, Gauteng, South Africa
Yusuf, Finance, Vans South Africa, Cape Town, South Africa
Glynis, Accounts, Fine Prints International Pty Ltd, Phalaborwa, South Africa

Birthdays this week

12/02/1951: Jack Bassage, Myganox, Pietermaritzburg, KZN, SA.
12/02/1961: Jon Robb, Neptun Boot, Pinetown, KZN, SA.
12/02/1968: Pino di Lembo, SA Crocodile & Exotic Skins Agencies, Johannesburg, Gauteng, SA.
12/02/1968: Sean Hadnum, Chillisource, UK.
12/02/1981: Joelene Chetty, Arena Trims, Pinetown, KZN, SA.
13/02/1950: Rowan Allison, Alleather Sales, Pinetown, KZN, SA.
13/02/1950: Dhiraj Dajee, Avalon Job Buyers, Cape Town, W. Cape, SA.
13/02/1964: Jean-Marc Tostee, agent, Durban, KZN, SA.
13/02/1975: Naeem Sonpra, Sonpra Bros, Polokwane/Pietersburg, Limpopo, SA.
13/02/1977: Steven Eckstein, emigrated, formerly Sports Action, Durban, KZN, SA.
14/02/1951: Maryse de Ranero, Great Brak River, W. Cape, SA.
14/02/1975: Alita Scholtz, All Protection Safety, Vanderbijlpark, Gauteng, SA.
14/02/????: Janine du Preez, freelance consultant, Cape Town, W. Cape, SA.
15/02/1948: Rajin Sheodin, Ace Components, Pinetown, KZN, SA.
15/02/1957: Ashraf (Baboo) Kader, Kaytex Belts, Pretoria, Gauteng, SA.
15/02/1965: Sanjay Nana, Navada Clothing, Johannesburg, Gauteng, SA.
16/02/1955: Hennie Roets, BKB, Port Elizabeth, E. Cape, SA.
16/02/1966: Lorraine Jackson, agent, Johannesburg, Gauteng, SA.
16/02/1987: Mohamed Hoosen, Winners, Klerksdorp, N.W. Province, SA.

In memoriam this week

10/02/1997: Don Craig, Cape Knife, Cape Town, W. Cape, SA.
10/02/2021: Dhanilall 'Tom' Baijnath (b. 05/11/1938), Western Tailors, Durban, KZN, SA.
11/02/2009: Frederick Bernard Cattell (b. 17/08/1917), Cattell’s, Springs, Gauteng, SA.
14/02/2004: Brian Matkovich (b. 06/02/1941), Futura Footwear, Pinetown, KZN, SA.
14/02/2024: Basil Da Silva (b. 28/02/1945), Mendelson & Frost, Cape Town, W. 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.

Directory entries updated last week

REB Huide & Velle cc, Kroonstad, Free State, SA.

3. Malawian Kwacha (MWK) (buying)

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

4. Zambian Kwacha (ZMW) (buying)

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

5. 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 (07 February 2024) – The current average hide price decreased by 0.01% to R2.793/kg from R2.794/kg a week ago. The current price is 0.45% lower than the average price a month ago and 14.93% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.93 Maximum price: R3.00. 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, 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:

Earth Gear (Pty) Ltd, Edenvale, Gauteng, SA. Outdoor footwear importer.
Global Sewing Machines, Durban, KZN, SA. Sewing machine supplier.

THIS WEEK LAST YEAR!

How black shoe store owners are carving their own paths in an already challenging business

VF Corporation admits ‘disappointing’ results as revenue drops 16%

READ IT HERE - S&V Weekly Newsletter Vol.10 No.07, February 12 2024

THIS WEEK FIVE YEARS AGO!!

Retail so far this year

'Resignation of SABS acting CEO a huge blow to business and consumer confidence' says DA

Pepco Group – Quarter 1 Trading Update: PEPCO led strong peak trading performance across all retail brands

READ IT HERE - S&V Weekly Newsletter Vol.6 No.06, February 10, 2020

Contact us

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

Next newsletter: Monday 17 February, 2025. Ad and editorial deadline Friday 14 February.

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

Our website www.svmag.co.za