S&V Weekly Newsletter Vol. 12 No. 31, August 03 2026

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Wage Negotiations

Tanning Sector: Still no final agreement

Port Elizabeth, E. Cape, SA – The Tanning Sector has still not reached a final wage agreement, and there has not been an update on the statement last week by the National Bargaining Council of the Leather Industry of SA which said there was to be a meeting between the Commissioner, the Southern African Clothing & Textile Workers Union (SACTWU) and the SA Tanning Employers Organisation (SATEO) to discuss picketing rules. However, Gert Kruger, MD of Mossop-Western Leathers, said yesterday: “It’s premature to say that there will be a strike in the tanning sector. Employers and SACTWU representatives have several points to still discuss and agree upon. An agreement with the National Union of Leather & Allied Workers (NULAW) has already been concluded.”

Trade

Industry engages the dtic on AfCFTA tariff offer ahead of SACU negotiations

By Dimakatso Moji (DTIC), Zamani Oliphant (SAFLIA), and Nerisha Jairaj (SAFLEC)
SAFLIA, SAFLEC, manufacturers and other industry stakeholders participated in an urgent consultation convened by the Department of Trade, Industry and Competition (the dtic) on 29 July 2026 to discuss South Africa's proposed African Continental Free Trade Area (AfCFTA) tariff offer for the footwear and leather sector.
     The consultation formed part of the final national engagement ahead of the upcoming Southern African Customs Union (SACU) negotiations, where South Africa's position on the remaining tariff lines will be consolidated before submission to the AfCFTA Secretariat. Industry was requested to provide urgent input on the proposed movement of selected tariff lines from the exclusion category to the sensitive category and to identify any remaining "red lines" supported by evidence.
     The discussion focused on the potential implications of the proposed tariff offer for the South African footwear and leather industry, together with the opportunities and risks associated with the implementation of the AfCFTA.
     Among the key issues raised by SAFLEC was the potential impact of foreign direct investment (FDI). While increased investment into Africa is an intended outcome of the AfCFTA, industry highlighted the need to ensure that investment strengthens African manufacturing and value addition without placing established South African manufacturers at a competitive disadvantage. Concern was expressed that manufacturers from major competitor countries could establish production facilities in lower-cost African countries and subsequently export duty free across the continent, increasing price pressure on local producers.
     Industry also requested greater transparency regarding the tariff concessions being offered by other African countries. Members emphasised the importance of understanding the reciprocal market access opportunities available to South African manufacturers and identifying markets where meaningful export growth can be achieved.
     Non-tariff barriers were also highlighted as a significant concern. SAFLEC referenced Kenya's testing requirements for footwear exports as an example of measures that increase the cost of doing business and reduce competitiveness despite preferential trade arrangements. Industry stressed that addressing non-tariff barriers will be as important as tariff liberalisation if the AfCFTA is to deliver tangible export opportunities.
     SAFLIA further raised concerns regarding transshipment and the integrity of the rules of origin. Industry cautioned against products manufactured outside Africa being routed through African countries and incorrectly declared as African-origin goods to qualify for preferential treatment. Strong enforcement of the rules of origin, customs verification and effective monitoring were identified as essential to protecting legitimate African manufacturing and ensuring a level playing field.
     The consultation also recognised the importance of balancing market integration with industrial development. Discussions highlighted the need for the AfCFTA to promote genuine manufacturing, regional value chains, investment, employment and value addition across Africa, while safeguarding existing productive capacity and supporting competitive local industries.      The dtic requested industry to submit evidence-based recommendations on the proposed tariff lines to assist South Africa in finalising its negotiating position ahead of the SACU discussions. SAFLIA will coordinate industry feedback and continue engaging with stakeholders throughout the process.
     SAFLIA and the dtic will continue to keep industry informed as the negotiations progress. In addition, SAFLEC will host a webinar later this quarter focusing on AfCFTA export opportunities, practical market access considerations and support available through Afreximbank.
     SAFLIA and SAFLEC remains committed to working collaboratively with government and industry partners to ensure the interests of South Africa's footwear and leather sector are effectively represented throughout the AfCFTA process.

The footwear lines that are specifically affected by AfCFTA tariff offer

By Zamani Oliphant (SAFLIA)
In Chapter 64 (Footwear), 11 tariff lines are proposed for movement from the Excluded List to the Sensitive List. These are the subject of the industry’s consultation. They are:
64011000 Footwear incorporating a protective metal toecap
64019200 Covering the ankle but not covering the knee
64022000 Footwear with upper straps or thongs assembled to the sole by means of plugs
64031900 Other
64032000 Footwear with outer soles of leather, and uppers which consist of leather straps across the instep and around the big toe
64034000 Other footwear, incorporating a protective metal toecap
64035100 Covering the ankle
64035910 Footwear with uppers of ostrich leather
64035990 Other
64039910 Footwear with uppers of ostrich leather
64039940 Footwear incorporating a protective toe cap of materials other than metal (e.g. fibreglass or carbon glass), with an impact strength of 200 Joules or more
     Following the discussion on Thursday, together with the broader engagements we have had with manufacturers and stakeholders, the clear mandate emerging from industry is that the current position should be maintained. Given the current state of the South African footwear industry, the continued pressures on local manufacturers and the need to safeguard existing productive capacity and employment, our view is that these tariff lines should remain unchanged and that we are not in a position to support further concessions at this stage.
     While the meeting also covered broader matters relating to foreign direct investment, rules of origin, transshipment, reciprocal market access and non-tariff barriers, the immediate priority is the position on these 11 tariff lines ahead of the forthcoming SACU negotiations.
     Should you have any additional comments or evidence that would strengthen the industry's position, particularly in support of maintaining the current tariff treatment, please forward these to me as soon as possible so that they can be incorporated into our consolidated submission.
     Thank you once again for your participation and continued support as we work to represent the interests of the South African footwear industry.

Results

Woolworths: Iran war hit fashion sales

Extracts from trading update and voluntary trading statement in respect of the 52 weeks ended 28 June 2026

Following a good first half result, the second half ("H2") of the financial year presented a more challenging operating environment, with the war in the Middle East driving fuel prices and inflation higher, dampening consumer confidence and demand, and increasing operating costs. This, coupled with the resumption of interest rate increases across South Africa and Australia, saw consumers increasingly prioritise promotional offerings and essential purchases.
     Against this backdrop, Group turnover and concession sales for the period grew by 4.3%, and by 4.8% in constant currency, with positive sales growth in all segments of the business on a full-year basis. Growth in the second half, however, slowed to 3.3%, reflecting a particularly challenging final quarter.
     Woolworths South Africa delivered solid turnover and concession sales growth of 5.4% for the period. Trading momentum moderated to 4.1% in the second half, with particular weakness in the fourth quarter, reflecting the impact of a strong comparative base, softer consumer demand and disruptions to trade. This impact was more pronounced in Fashion, Beauty and Home ("FBH").
     FBH turnover and concession sales increased by 4.4% and by 4.0% on a comparable-store basis. While trading momentum accelerated in the first half, the war in the Middle East had a pronounced impact on demand, particularly in the fourth quarter, resulting in H2 sales growth slowing considerably to 2.6%. Price movement averaged 2.4% over the period, with Fashion inflation at 0.9%. Our price investment in Kidswear, together with additional promotional activity and clearance of excess inventory following the unplanned weaker sales performance in the last quarter, placed significant pressure on gross profit margin in the second half. Notwithstanding further cost reduction efforts, these were insufficient to offset the impact of gross profit margin dilution on H2 profit. Our Home business delivered strong growth of 11.7%, supported by an enhanced Homeware offering. Beauty grew by 7.9%, despite increased competition in this category, and continues to entrench itself as a leading Beauty destination. Our ongoing focus to optimise space and efficiency metrics, resulted in net trading space for FBH decreasing by 0.7% relative to the prior period, while online sales contribution to SA sales declined marginally to 6.3%.

AVI Ltd: Footwear and apparel up

Extracts from voluntary trading statement and update for the year ended 30 June 2026

Johannesburg, Gauteng, SA – Segmental revenue for the year ended 30 June 2026

AVI's results for the year ended 30 June 2026 reflect another resilient performance in what remains a challenging trading environment. The first semester benefitted from selling price increases, volume growth in several categories and sound margin management, supported by cost efficiency initiatives implemented in the prior year. The second semester was more challenging. Weaker consumer demand was exacerbated by materially higher fuel prices, sustained high interest rates and a generally more competitive environment. The last quarter's sales were substantially impacted by lower demand from distributors and wholesale customers delaying purchases due to the threat of unrest surrounding the 30 June national protest action.
     Footwear and apparel brands delivered a pleasing result, with growth supported by the non-repeat of prior year supply chain challenges, good demand for core footwear brands through the peak December trading period and the non-recurrence of prior year costs associated with the closure of Green Cross. Footwear sales volumes improved in both the first and second semester, albeit constrained by widespread deep discounting by big-box apparel retailers.

VF Corporation: 1st quarter up 1%, Vans still poor

Denver, Colorado, U.S. – VF Corporation reported financial results for its first quarter (Q1'27) ended 27 June 2026.
Bracken Darrell, President and CEO, said: "We had a solid start to the year, beating our revenue and operating income guidance. The North Face, Timberland and Altra delivered another quarter of growth; and Vans Americas DTC continued to grow but was more than offset by declines in global Wholesale. We expect Vans Wholesale to improve significantly in the second half of the year. Given our overall Q1 performance and better visibility into the balance of the year, we are raising our FY'27 revenue guidance."
•Revenue (5%) vs. LY
     •Revenue ex Dickies +1% vs. LY or flat C$, ahead of guidance of down low-single digits C$ vs. LY
     •Continued positive performance in global DTC, +2% vs. LY or +5% C$ ex Dickies
     •Americas region (4%) vs. LY; ex Dickies +4% C$ with growth across both channels
     •The North Face +6% vs. LY or +4% C$, led by the Americas region and DTC channel
     •Vans (8%) vs. LY or (9%) C$, with continued growth in Americas DTC, more than offset by Wholesale declines
     •Timberland +4% vs. LY or +3% C$, driven by the Americas

Death

Port Elizabeth, E. Cape, SA – Colin Battle, a former agent, died on 27 July, aged 69. An obituary will follow in the August issue of Shoes & Views.

They Said It

“The guys aren't using ladies’ heels in their factories. Mostly they’re making simple sandals.” - Shaun Moodley, BM Agencies, Durban, KZN, SA, one of the few remaining ABS higher heel manufacturers.

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

03/08/1941: Rolf Haesloop, retired, formerly Haesloop Agencies, Pinetown, KZN, SA.
03/08/1972: Fazel Allie, Arma Trading, Botswana.
03/08/1928: Gerry Elder, retired, formerly an agent, Cape Town, W. Cape, SA.
05/08/1933: Roberto Marchesi, designer, Cape Town, W. Cape, SA.
05/08/1943: Barry Selby, retired, formerly The Athlete’s Foot, Cape Town, W. Cape, SA.
05/08/1953: Iqbal Moosa, Jumbo Footwear, Pietermaritzburg, KZN, SA.
05/08/1956: Rafiq Shah, Evoné, Pietermaritzburg, KZN, SA.
05/08/1961: Vaughn van der Merwe, World of Workwear, Germiston, Gauteng, SA.
05/08/1964: Christo Nel, Conloo Joinery, Welkom, Free State, SA.
05/08/1979: Deepesh Ghela, National Adhesive Manufacturers, Pietermaritzburg, KZN, SA.
06/08/1953: Naren Pattundeen, left the industry, formerly Palm Footwear, Durban, KZN, SA.
06/08/1951: Marius Ferreira, retired, formerly Bolton Footwear, Great Brak River, W. Cape, SA.
06/08/1942: Mahomed Farouk Moosa Seedat, retired, formerly Prince International, Durban, KZN, SA.
06/08/1959: Mano Chetty, Borage Trading, Pinetown, KZN, SA.
06/08/1979: Anke-Maree Nefdt, Martin Nefdt Agencies, Port Elizabeth, E. Cape, SA.
07/08/1951: Frik Janse van Rensburg, retired to Margate, KZN, formerly Game Skin & Leather Tanning (closed), Brits, N.W. Province, SA.
08/08/1950: Eldon Fortmann, retired, formerly Bagshaw, Port Elizabeth, E. Cape, SA.
08/08/1953: Doug Hawkey, emigrated to Australia, formerly Columbia Marketing/Apex Components (closed), Pinetown, KZN, SA.
08/08/1986: P.G. Needham, Needham Leather Goods, Pretoria, Gauteng, SA.
09/08/1988: Waseem Carrim, Bossini Collezione D'Italia, Rustenburg, N.W. Province, SA.

In memoriam this week

03/08/1999: Otto Guldimann (b. 2/10/1922), Cellini (closed), Cape Town, W. Cape, SA.
03/08/1992: Malcolm Kueghn, Hi-Tec Sports, Johannesburg, Gauteng, SA.
03/08/2007: Noel Amery (b. 05/09/1944), Western Tanning and Michelle Footwear, Durban, KZN, and Clarens Leather (closed), Clarens, Free State, SA.
04/08/2006: Peter Gibbings (b. 31/01/1922), Apeco (closed), Port Elizabeth, E. Cape, SA.
05/08/2002: Darryl Austin (b. 21/02/1947), Austin Shoes, Karmino Shoes [both closed], Pietermaritzburg, KZN, SA.
06/08/2012: Bob Johnsen (b. ?), Picannini Shoes (closed), footwear designer, Durban, KZN, SA.
06/08/2021: Ben Peters (b. 30/09/1934), Tuftex, Port Elizabeth, E. Cape, SA.
08/08/2010: Gareth Davies [b. 02/04/1945], Edcon (closed), Johannesburg, Gauteng, SA.
08/08/2019: Ben Cartoon (b. 08/10/1946), Paris Belts, Johannesburg, Gauteng, SA.
09/08/2013: Daniël Bruwer (Stoffel) Matthis (b. 04/05/1934), SHALC and many meat industry bodies, Pretoria, Gauteng, SA.
09/08/2020: John Kellett (b. 25/10/1939), Durata Shoe Works (closed), Cape Town, W. Cape, SA.
09/08/2020: Suliman Mohamed Ahmed (b. 21/05/1949), Shoe Valley, Benoni, Gauteng, 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.

New subscribers last week

Yusuf, 85 Karat Apparel, Durban, KZN, South Africa
Judy Lazarus, HR Manager, Dick Whittington Shoes, Pietermaritzburg, KZN, South Africa

Directory entries updated last week

Ace Shoe Components cc, Pinetown, KZN, SA.
African Gameskin Group (Pty) Ltd, Cape Town, W. Cape, SA.
African Gameskin Group (Pty) Ltd – Durban branch, KZN, SA.
African Gameskin Group (Pty) Ltd – Johannesburg branch, Gauteng, SA.
Bevin Horwitz Agencies, Pretoria, Gauteng, SA.
Leather From Hart cc, Pietermaritzburg, KZN, SA.
Owen Horwitz Agencies, Bloemfontein, 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 (29 July 2026) - The current average hide price decreased by 2.04% to R2.321/kg from R2.369/kg a week ago. The current price is 0.03% higher than the average price a month ago and was 6% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.25 Maximum price: R2.79. 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. - Jade Smith, 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:

Sentraal Suid Koõperasie, Swellendam, W. Cape, SA. Cooperative.
Two On Toast, Knysna, W. Cape, SA. Women’s apparel retailer.

THIS WEEK LAST YEAR!

U.S. tariffs
- Exports paused ‘until there is clarity’
- A bump in the road, not a roadblock
- A drop, but if competitors face similar tariffs, we will still be competitive
- We shouldn’t be targeted
- Challenging headwinds, unwavering resolve: Navigating tariffs and political uncertainty in our mission to position South Africa as a premier sourcing destination

Stock Exchange News Service
- Fashion, beauty & home turnover up 5.1% on comparable store business

READ IT HERE - S&V Weekly Newsletter Vol.11 No.31, August 04 2025

THIS WEEK FIVE YEARS AGO!!

The aftermath part 3
- Greenaways: Getting there, but achingly slowly
- Sweet Peas: With a little help from our friends...
- Casanova: 'I'm a town boy...that's me'
- AVI: Impact of recent looting and violence

Stock Exchange News Services (SENS)
- AVI - trading statement

End-of-rent blues

Retirement: Heleen Temple, senior manager: standards development at the SA Bureau of Standards

READ IT HERE - S&V Weekly Newsletter Vol.7 No.31, August 2 2021

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All the past S&V Weekly Newsletters from January 2016 onwards are available in the newsletter archive.
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Contact us

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

Next newsletter: Monday 11 August, 2026. Ad and editorial deadline Friday 07 August 2026.

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