S&V Weekly Newsletter Vol. 12 No. 23, June 08 2026

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Fire

Port Elizabeth, E. Cape, SA - Port Elizabeth Leather Company (Pelco) suffered a fire last Thursday, but the extent of the damage is unknown. The business hasn’t responded to email queries, and the number on its Facebook page isn’t answered.

Wage negotiations

Footwear third round today

General Goods & Handbags Section
The parties have successfully concluded negotiations and agreed to a oneyear agreement. The National Bargaining Council of the Leather Industry has suggested that the details not be published as “This outcome has not yet been formally communicated to employers and will be shared once all parties have signed the agreement”.

Tanning Sector
The process remains ongoing, with the Council awaiting feedback from the unions regarding the draft proposal currently under consideration.

Footwear Sector
The third round of negotiations has been scheduled for 08 June 2026. Should the parties fail to reach an agreement, mediation will be facilitated by a commissioner on 9 June 2026.

Webinar

SGS hosts webinar for exporters on regulatory updates for restricted substances in softlines products

Baar, Switzerland (04 June 2026) - Testing, inspection and certification company SGS will host a webinar, ‘Restricted substances in softlines products: regulatory update’ on 18 June 2026.
     As regulatory pressure intensifies and sustainability expectations grow, apparel and footwear businesses are facing significant challenges adapting to stricter legislative measures such as the EU Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation. Ensuring compliance in this rapidly changing landscape demands a proactive, informed approach supported by expert insight and robust testing and compliance solutions.
     This complimentary live webinar provides an opportunity for softlines businesses to learn about the latest legislative developments in Europe and North America impacting restricted substances compliance, enabling them to prepare for regulatory changes and reduce compliance risks. In particular, the EU’s REACH regulation will be examined, with a spotlight on the practical application of Annex XVII requirements and key differences between EU and UK REACH frameworks.
     As the global apparel industry moves toward ever-tighter restrictions, current developments in per- and polyfluoroalkyl substances (PFAS) control will be explored, and the findings from the European Chemicals Agency’s (ECHA) REF-12 project report will be discussed to provide insights into current regulatory approaches to compliance.  An overview of recent product recalls will also be offered to illustrate real-world conformity issues, with a Q&A session to support practical implementation and risk mitigation strategies.
     This webinar is designed for those working in regulatory compliance, product safety and quality management for the European and North American softlines markets.

Through the IMPACT Now for sustainability initiative, SGS offers targeted solutions, such as PFAS testing, under 4 key pillars: climate, circularity, nature and environmental and social governance assurance. These services help softlines businesses reduce risk, enhance compliance and drive sustainable innovation. Learn more about IMPACT NOW for sustainability.
 
Stakeholders should register now to secure their place on this informative webinar.

Mr Price final results March 2026

Apparel sales up 4.2%

This report includes extracts from the report. For full details, please go to https://clientportal.jse.co.za/communication/sens-announcements

Durban, KZN, SA (05 June 2026) - Revenue for the year went up 4.2% to R42.7 billion (R40.9 billion) whilst profit before finance costs and finance income grew by 4.3% to R6.0 billion (R5.8 billion).
     To date, the group has been largely unaffected [by the Iran war] from a business cost perspective, and its supply chain planning has protected it from short-term price increases and surcharges. Its on-time and in-full merchandise deliveries have not been impacted, ensuring that winter product arrivals occurred as planned. The duration of the conflict will determine the degree of materiality on business operations and the consumer.
     Value retail is anticipated to demonstrate resilience as consumers navigate a potentially prolonged period of financial pressure. The group is confident that its 16 trading chains are well positioned to provide customers with excellent value. Its differentiated- fashion merchandise has ensured that Mr Price Apparel remains the most shopped apparel retailer in South Africa (MAPS) and Mr Price Home the most loved homeware retailer (NiQ). The Mr Price brand strength, associated with excellent value, was ranked 7th across South Africa's top 100 brands (Brand Finance). These accolades become even more important during times when consumers are forced to seek increased value for their spend.
     Focus for FY2027 will be to continue the consistent earnings growth achieved by the group over the last three years. Its value- focused business model has enabled operating leverage despite sales growth constraints. Navigating a complex operating environment in South Africa with disciplined execution will be the top priority for management.
     In South Africa, capital expenditure for FY2027 is forecast to be R1.1bn, with approximately 180 new stores, store revamps, supply chain and technology investment. Given the introduction of structural debt, focus on balance sheet and treasury management will be prioritised. In Europe, NKD's capital expenditure is forecast to be EUR24m and incorporates approximately 150 new stores.

The group's retail sales growth of 4.3% (FY2025: 7.8%) was higher than the Retailers' Liaison Committee (RLC) growth of 4.0% (FY2025: 5.0%). The group expanded its annual gross profit (GP) margin by 70bps to 41.2%, despite the retail sector being highly promotional. The group's disciplined execution of its value-driven model delivered positive operating leverage. Operating profit grew by 4.3%, (normalised: +8.0%) exceeding R6bn for the first time, with its operating margin maintained at 14.2% (normalised: up 50bps to 14.7%).

Group results summary

Group retail sales of R41.1bn increased 4.3% and comparable store sales increased 1.1%. Other revenue decreased 1.9% to R1.3bn due to lower interest rates impacting debtors' interest.
     Group store sales increased 4.4% and online sales 4.9%. Customers continued to utilise the group's omni-channel shopping offering with more than 55% of online orders being collected in store. Group unit sales increased 0.5% with retail selling price (RSP) inflation of 3.8%.
     The group opened 196 new stores across its 15 trading chains, increasing its total store footprint to 3 182. Trading space increased by 3.6% on a weighted average basis. New store returns remain healthy, and with South African customers continuing to favour in-store shopping, this channel remains a high-yielding avenue for capital deployment.
     Cash sales constituted 89.4% of group retail sales and increased 4.4%. Credit sales grew by 3.5%, supported by an 11.0% increase in new accounts approved (approval rate: 21.9%). Consumers remained cautious in their credit utilisation as debt servicing levels remained high and in anticipation of an inflection in the interest rate, which has now materialised following the 25bps increase at end May 2026. The group will continue to manage its credit book conservatively.
     The group's GP margin expanded 70bps to 41.2%, with all trading segments reporting gains. Despite a volatile consumer environment and promotional sector, the merchandise GP margin increased to 42.0% and the Telecoms GP margin expanded to 20.7%.
 

The Apparel segment increased retail sales by 4.2% to R32.8bn, outperforming the RLC's growth of 3.4%, while comparable retail sales increased 1.1%. Performance in H2 was against a high base, with retail sales and comparable sales growth of 9.8% and 5.8% respectively in the prior year. Despite the softer topline growth for the sector resulting in a highly promotional environment, the segment increased GP margin, driven by its three largest divisions. Its two newest divisions continued to expand, with Power Fashion nearly doubling its store footprint since acquisition to 354 stores, while Studio 88 surpassed 1 000 stores. These two divisions collectively delivered well in excess of R1bn in operating profit, supporting the expansion of the segment's operating margin by 70bps.

In case you missed it!

The May/June issue of S&V Protect Magazine

CLICK HERE TO VIEW IT ONLINE

S&V PROTECT MAGAZINE VOL20 NO3 MAY/JUNE 2026

IN THIS ISSUE:

03 Upfront
- The Hierarchy of Controls – a constant reminder for the PPE industry.
- China-made firefighting equipment now needs verification of conformity with SANS standards.
- Biodegradable disposable gloves ‘a growing trend’ in PPE.

05 OHS Insights
- New OHS regulations coming into force later this year mean PPE needs to be reviewed, too, writes Veteran SHE and risk management consultant, Leighton Bennett, chairperson of the Safety First Association.

06 PPE Conference
- Protecting the workforce: The critical role of PPE, by Elize Lourens, Specialist: Occupational Health & Hygiene, Directorate Occupational Health and Hygiene, Department of Employment & Labour.
- Occupational noise-induced hearing loss ‘is the most prevalent occupational disease in the world’, by Peter-John ‘Jakes’ Jacobs, Sedulitas.
- Statistical shape modelling for population-specific respirator design: Addressing fit failure in South African populations, by Dr Deon Swanepoel of D’Sayensi Occupational Hygiene.

13 Profiles
- Premier Workwear: Engineered Protection for Africa’s industrial workforce, by Mustapha Adam, director.
- RealPPE Marketplace: Where safety meets smarter procurement, by Sibu Komane, support department.

21 Buyers' Guide
- What's on offer.

Advertisers in this Issue
BBF Safety Group/Bova (OFC), Kaliber (02), Rainbow Group (10), Premier Workwear/FlexiCool (06), Rebel Safety Gear (04), S&V Calendar (05), S&V Directory (12), Sendi Apparel (08).

They Said It

“Leave it with me, but I can’t walk on water.” - Rowan Allison, Alleather Sales, Durban KZN, SA.

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

Deidre, Footwear Technologist, Pep, Cape Town, South Africa
Rita Pooran, Quality Assurance Manager, Neptun Boot, Pinetown, South Africa
Kevin Pillay, Manager, Neptun Boot, Durban, South Africa
Lamar, Factory Manager, Leather from Hart, PMB, KwaZulu-Natal, South Africa

Birthdays this week

08/06/1955: Brad Lemkus, retired, formerly Hi-Tec, Cape Town, W. Cape, SA.
08/06/1958: Sandra Young, left the industry, formerly Archilles Engineering (closed). Benoni.
08/06/1969: Alan Schechter, Jumbo Clothing, East London, E. Cape, SA.
09/06/1957: Willem Fourie, Images, Bloemfontein, Free State, SA.
09/06/1989: Noushard Mahomed Hoosen, Paris Belts, Johannesburg, Gauteng, SA.
10/06/1951: Marthus Louw, retired, formerly Bolton Footwear, Great Brak River, W. Cape, SA.
10/06/1955: Piet Kleyn, CEO, SA Ostrich Business Chamber, Oudtshoorn, W. Cape, SA.
10/06/1960: Lawrence Mabhiza, Truworths Group of Companies, Harare, Zimbabwe.
10/06/1961: Richard Turner, emigrated, formerly Bolton Footwear, Great Brak River, W. Cape, SA.
10/06/1983: Jarod Grossberg, formerly Geestep (closed), Durban, KZN, SA.
11/06/1948: Basie Vermaak, retired, formerly Watson Shoes, Great Brak River, W. Cape, SA.
11/06/1961: Andy Raouna, left the industry, formerly Multiserv, Johannesburg.
12/06/1954: Frieda Maisey, emigrated, formerly Brondean Agencies, Port Elizabeth, E. Cape, SA.
13/06/1943: Peter Book, retired, formerly Woodheads, Cape Town, W. Cape, SA.
13/06/1950: Maria Caldeira, Solemates, East Rand, Gauteng, SA.
13/06/1966: Benedict Plaatjies, Leather from Hart, Pietermaritzburg, KZN, SA.
13/06/1974: Stuart Worrall, Elan-Polo, Cape Town, W. Cape, SA.
14/06/1952: Terry Holton, retired, formerly ACA Threads, Johannesburg, Gauteng, SA.
14/06/1963: Niekie Vermaak, Cape Karoo International, Oudtshoorn, W. Cape, SA.
14/06/1965: Beverley Riley, Brits Leather Products, Brits, NW Province, SA.
14/06/1965: Allan Kisten, Spunlok, Pinetown, KZN, SA.
14/06/1969: Alison Piccione, KMP Footwear, Pinetown, KZN, SA.
14/06/1983: Lebogang Mokwele, QS Safety, Kempton Park, Gauteng, SA.

In memoriam this week

09/06/2002: Howard ‘Snowy’ Vaubell, Crown Footwear, Pinetown, KZN, SA.
09/06/2003: Dr Stanley Shuttleworth (b. 1911), LIRI (closed) founder, Grahamstown, E. Cape, SA.
12/06/2004: Neville Williams (b. 04/1945), Cameo Components/Central Components (closed), Pinetown, 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

Barrenger’s Apparel cc, Lenasia, Gauteng, SA.
Shlobo Designs (Pty) Ltd, Durban, KZN, SA.
Threads Africa [Logish Trading 50 cc], Durban, KZN, 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 (05 June 2026) - The current average hide price increased by 0.27% to R2,260/kg from R2.254/kg, in the previous week. The current price is 0.17% higher than the average price a month ago and was 8.7% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.00 Maximum price: R2.78. 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:

Janine’s Clothing, Hermanus, W. Cape, SA. Women’s apparel retailer.
Jasworth Sports, Bethal, Mpumalanga, SA. Sports goods retailer.

THIS WEEK LAST YEAR!

Personnel changes: Mohamed Dewan was appointed General Manager of Boardriders South Africa.

Wages: Still no finality

Annual report: Mr Price Group Limited: Annual results for the 52 weeks ended 29 March 2025

READ IT HERE - S&V Weekly Newsletter Vol.11 No.23, June 9 2025

THIS WEEK FIVE YEARS AGO!!

GST Seton rebrands as Pangea

Outfitters launching their own online

READ IT HERE - S&V Weekly Newsletter Vol.7 No.23, June 7 2021

NEWSLETTER ARCHIVE

All the past S&V Weekly Newsletters from January 2016 onwards are available in the newsletter archive.
VIEW THE ARCHIVE - CLICK HERE

Contact us

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

Next newsletter: Monday 15 June, 2026. Ad and editorial deadline Friday 12 June 2026.

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