Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries

PLEASE NOTE: We are currently busy with the rollout of the new website so there are elements that are currently still being tweaked and content being added.

S&V PUBLICATIONS WEEKLY NEWSLETTER

The S&V newsletter is published weekly to our newsletter mailing list and is also published to our web site. 

S&V Weekly Newsletter Vol.5 No.45, November 11, 2019

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

 

Good news last week

Tracking SA's recovery in the headlines:
South Africans have also had another reason to smile over the past few days – albeit through slightly gritted teeth – at ratings agency Moody’s decision on Friday to keep the country’s credit rating at Baa3.

 

Retail last week

Comment from 4 retailers on Saturday
"It hasn't been too bad. Friday was quite good, and today we had a couple of big account customers. We've also been experimenting with opening on Sundays for the past couple of months, which is possible since I joined and we have more management. So far it doesn't compare to Saturdays in terms of business, but people are popping in and saying they didn't realise we'd be open. We'll probably open 1 Sunday a month and advertise it on social media. We've been doing quite a lot of promotions on social media, and it's also too soon to say how much effect it has, but we'll continue with it. We've also spent quite a bit on store upgrades and on fliers and window advertising." - Ahmed Jassat, manager, Jasworth Sports/Bargain House, Bethal, Mpumalanga, SA. Independent, 2 stores, sport fashion and departmental store.

"Like the whole year, it hasn't been good at all. Unemployment is the biggest problem for the whole country, but we have some local ones, too. Our West Rand store has been affected by the violence surrounding illegal mining, which is a huge industry now - forget people crawling around in tunnels, there's open cast mining taking place in front of our eyes. The Carlton Centre store has been affected by xenophobic attacks on foreigners who are now too scared to buy anything in case it's stolen from them in attacks. And here in Randfontein, we've been without electricity for 5 hours today. We've been in business for 35 years, and we've experienced some bad times, but we've always recovered. Anyway you look at it now, we're in the doghouse." - Yameen Mayet, director, Jay's Outfitters/Cyber Zone, Krugersdorp, Randfontein and Johannesburg, Gauteng, SA. Independent, sports fashion.

"Monday to Thursday was very quiet. Friday you couldn't do anything with all the traffic until the Springbok bus passed - then it was busy, and today has also been busy. Most retailers have had a hard time this year, and that's hurt the factories, too. All the Chinese, Ethiopians and Nigerians selling fakes outside their shops make life difficult. I think that's why Edgars closed its store in West Street. About 2 months ago, the police raided warehouses with illegal stock, but the next day, they were operating again. I'm lucky because I'm a retailer and a repairer and a commission agent for Navada Clothing, including their shoes, but the agency side has also dropped by 50% because you can't supply blindly anymore." - Jay Mavjee, proprietor, Natal Shoes & Repairs, Durban, KZN, SA. Independent, 1 store, men's and children's shoes and school shoes.

"We've noticed that the foreign tourists are coming later this year, which has affected us, but with our local customers, we're doing well. We're a destination store, and we have a big retirement village near here, so everything we sell is comfort and good quality. Generally, trade is down from the 10th to the 17th of each month, and right now, people are waiting for Black Friday. We'll make a big thing of Black Friday, and we have promotions every 3 or 4 weeks, to keep our stock moving." - Jacqui Martin, sales and admin, Jenebella Trading, Somerset West, W Cape, SA. Independent, 1 store, women's and men's comfort footwear, handbags and accessories.

 

 

SENS releases last week

1. TFG interim results September 2019
Cape Town, W Cape, SA (November 7, 2019) – Revenue for the interim period grew to R18.6 billion (2018: R17.5 billion) whilst gross profit increased to R9 billion (2018: R8.5 billion). Operating profit before finance costs rose to R2.3 billion (2018: R2.2 billion). Furthermore, headline earnings per share were higher at 526.7 cents per share (2018: 511.4 cents per share).
       Interim ordinary dividend: The directors have declared a gross interim ordinary dividend of 335.0 cents per ordinary share from income reserves, for the period ended 30 September 2019, payable on Monday, 6 January 2020 to ordinary shareholders recorded in the books of the company at the close of business on Friday, 3 January 2020.
       Preference dividend: Dividend no. 166 of 3.25% (6.5 cents per share) (gross) in respect of the six months ending 31 March 2020 has been declared from income reserves, payable on Monday, 16 March 2020 to holders of 6.5% preference shares recorded in the books of the company at the close of business on Friday, 13 March 2020.
       Company outlook: The general retail outlook in the UK and Australia remains relatively subdued. However, the retail outlook for South Africa is particularly challenging given the close to zero growth environment, chronically high structural unemployment and the continuing speculation of a possible credit downgrade and what that may imply for the consumer.
       Despite these challenges, TFG will continue focus on its well-defined strategy and believes that its considerable efforts in respect of digital transformation and business optimisation will positively position the Group for the future.
       As always, the second half of the Group's financial year is heavily dependent on Black Friday, Cyber Monday and Christmas trade, which will largely determine performance for the full year. In South Africa, trading conditions have continued to tighten over recent months and, coming off a high base in the previous period, the Group is cautious in respect of its expectations for the remainder of the financial year.

2. Truworths business update
Cape Town, W Cape, SA (November 7, 2019) – Truworths announced that retail sales for the first 18 trading weeks (1 July 2019 to 3 November 2019) of the 2020 financial period (the current period') increased by 2% to R6.3 billion compared to the first 18 trading weeks (2 July 2018 to 4 November 2018) of the 2019 financial period (the prior period').
       Account sales comprised 52% (2019: 50%) of Group retail sales for the current period, with account sales increasing by 5% and cash sales decreasing by 1% relative to the prior period.
       Retail sales for Truworths Africa (being the Group, excluding the UK-based Office segment and comprising mainly of the Truworths businesses in South Africa) increased by 3% to R4.6 billion relative to the prior period's R4.4 billion. Account sales comprised 71% of these retail sales (2019: 70%). Truworths' trading space increased by 1% on the prior period and is expected to increase between 0% and 1% for the full 2020 financial period. Comparable product inflation averaged 0.4% for the current period.
       Retail sales for the Group's UK-based Office segment were unchanged in Sterling terms at GBP95 million. In Rand terms retail sales for Office decreased by 1% to R1.7 billion. Office's trading space decreased by 7% compared to the prior period and is expected to decrease by approximately 5% for the full 2020 financial period as Office continues to exit unprofitable space.
       The Group's gross trade receivables at 27 October 2019 increased by 4% to R5.9 billion compared to R5.7 billion at 28 October 2018. The number of active accounts increased by 3%. The percentage of active account holders able to purchase and overdue balances as a percentage of gross trade receivables were at 85% and 13%, respectively.
       Although the trading environment is expected to remain challenging, the Group continues to utilise its extensive experience to manage the risk of fashion through its proven merchandise design and buying processes, and manage the risk of the book through continuing to apply strategies to ensure the on-going health of the portfolio.
       Shareholders are advised that this business update does not constitute an earnings forecast, that the financial information provided herein is the responsibility of the directors, and that such information has neither been reviewed nor reported on by the Group's external auditors. The Group's interim results for the 26-week period ending 29 December 2019 are scheduled for release on or about Thursday, 20 February 2020.

 

Peter Adams, ex-TFG, joins FLIC

By Richard Starmer, FLIC
Pietermaritzburg, KZN, SA – FLIC has acquired the services of Peter Adams (ex Edgars & TFG retail specialist) as of the 1st November 2019.
       He comes with a wealth of retail knowledge which he will shortly start imparting on compliant footwear and leather goods manufacturers wishing to break into the big retailers. He will be conducting evaluations of the various companies wishing to take advantage of this FLIC intervention. He will then conduct the relevant retail readiness training programmes with the various companies and their representatives to retail. This dovetails very nicely with the R-CTFL Masterplan objectives.
         In addition to assisting established manufacturers, he will be looking to develop and assist in the marketing of SMMEs and their products to big retailers. He has a significant network of contacts within the footwear and clothing retail sectors and is ideally suited to assisting in making this a reality.
       He can be contacted on peterada2211@gmail.com

 

They Said It

"Nike's decision to close independent retailer accounts: Big chains, big winners. Street traders, selling fakes, big winners. But independent retailers, who built the brand, big losers." - Ginger Bhagwandas, Gingers International.

"You shouldn't be working on a Saturday. You should be riding a bike on the beachfront." - Jay's Outfitters director Yameen Mayet. Ah, Yameen - tell that to my bank manager.

 

S&V Directory - Order now

The directory is ready. On sale for R450. The online version is also available at R450 for 12 months' access.

 

2019 Trade Fairs Another essential service from S&V

Please note that we have put a list of the 2019 trade fairs and conferences on our website, linked to their websites: http://www.svmag.co.za/events

 

Exchange rates

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ Yuan Renminbi ¥
05/01/2019 R15.94 R17.79 R13.99 R2.03
12/01/2019 R15.86 R17.76 R13.83 R2.04
19/01/2019 R15.76 R17.85 R13.87 R2.04
26/01/2019 R15.52 R17.97 R13.60 R2.01
02/02/2019 R15.26 R17.42 R13.32 R1.97
09/02/2019 R15.46 R17.66 R13.65 R2.02
16/02/2019 R15.90 R18.15 R14.09 R2.08
23/02/2019 R15.90 R18.32 R14.04 R2.09
02/03/2019 R16.17 R18.77 R14.22 R2.12
09/03/2019 R16.22 R18.79 R14.43 R2.14
16/03/2019 R16.31 R19.15 R14.40 R2.14
25/03/2019 R16.31 R19.02 R14.42 R2.14
30/03/2019 R16.26 R18.90 R14.49 R2.15
06/04/2019 R15.80 R18.36 R14.09 R2.09
13/04/2019 R15.76 R18.24 R13.95 R2.08
20/04/2019 R15.86 R18.33 R14.10 R2.10
27/04/2019 R16.03 R18.56 R14.37 R2.13
04/05/2019 R16.08 R18.88 R14.34 R2.13
11/05/2019 R15.91 R18.40 R14.16 R2.07
18/05/2019 R16.09 R18.32 R14.41 R2.08
25/05/2019 R16.15 R18.32 R14.41 R2.08
01/06/2019 R16.28 R18.41 R14.57 R2.11
08/06/2019 R16.95 R19.03 R14.94 R2.16
15/06/2019 R16.61 R18.65 R14.81 R2.14
22/06/2019 R16.30 R18.24 R14.32 R2.08
29/06/2019 R16.01 R17.88 R14.08 R2.05
06/07/2019 R15.91 R17.74 R14.17 R2.05
13/07/2019 R15.75 R17.57 R13.97 R2.03
20/07/2019 R15.63 R17.42 R13.93 R2.02
27/07/2019 R15.91 R17.68 R14.29 R2.07
03/08/2019 R16.42 R17.97 R14.78 R2.13
10/08/2019 R17.08 R18.34 R15.25 R2.16
17/08/2019 R16.97 R18.58 R15.30 R2.17
26/08/2019 R17.00 R18.74 R15.27 R2.13
31/08/2019 R16.68 R18.46 R15.18 R2.12
07/09/2019 R16.32 R18.13 R14.79 R2.07
14/09/2019 R16.22 R18.16 R14.55 R2.05
21/09/2019 R16.44 R18.61 R14.92 R2.10
28/09/2019 R16.55 R18.61 R15.14 R2.12
05/10/2019 R16.52 R18.56 R15.04 R2.10
12/10/2019 R16.32 R18.68 R14.78 R2.08
19/10/2019 R16.52 R19.19 R14.78 R2.08
26/10/2019 R16.20 R18.74 R14.61 R2.06
04/11/2019 R16.54 R19.17 R14.82< R2.10
09/11/2019 R16.37 R18.98 R14.85< R2.12
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends 08/11: Hides & skins prices

Hides: The current price is 7.5% lower than prices were a month ago and the current hide price is 64.5% lower than prices were a year ago. This week a slight uptick in local demand supported prices. Generally, the hide market sentiment is bearish, in line with the weak international hide market. Abundant supplies continue to weigh down the global and local market. Prices are not expected to rebound in the short to medium term. Sheep skins: The price for dorper skins remained unchanged at R23.33/skin and the price of merino skins increased by 8.5% to R41.43/skin this week. Compared to a year ago the price of dorper skins is 23.83% lower and the price of merino skins is 57.24% lower. - Wessel Lemmer, senior agricultural economist, Absa Group. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
18/01/2019 3.94 33.75 81.67
25/01/2019 2.89 31.11 92.78
01/02/2019 2.83 30.63 87.50
05/02/2019 2.53    
13/02/2019 2.95    
15/02/2019 2.95 25.83 62.01
19/02/2019 2.01    
22/02/2019 2.00 31.88 49.21
26/02/2019 2.04    
01/03/2019 2.04 30.00 45.21
14/03/2019 1.63    
20/03/2019 1.60    
27/03/2019 1.67    
10/04/2019 1.68    
24/04/2019 1.78    
26/04/2019 1.49 32.50  
03/05/2019 1.82    
17/05/2019 2.05 34.00  
21/05/2019 1.72    
24/05/2019 1.72 36.67  
28/05/2019 1.74    
31/05/2019 1.74 32.50 48.75
10/06/2019 1.68 41.90  
14/06/2019   25.83 38.57
18/06/2019 1.68 25.83  
28/06/2019 1.66    
01/07/2019 1.67    
05/07/2019   25.00 38.57
12/07/2019 1.70 24.00 38.75
16/07/2019 1.71    
23/07/2019 1.71    
29/07/2019 1.59    
09/08/2019 1.58 28.75  
13/08/2019 1.57    
28/08/2019 1.52    
17/09/2019 1.78    
27/09/2019   25.00 35.50
08/10/2019 1.86    
16/10/2019 2.09    
18/10/2019   23.33 39.29
29/10/2019 1.65    
06/11/2019 1.72    
For previous prices, see HERE
 

  

11/11/1940: David Chasi, Zambezi Tanners, Bulawayo.
11/11/1941: Brian Gurney, retired, formerly Watson Shoes, Great Brak River.
11/11/1947: Trevor Espey, agent, Cape Town.
11/11/1951: William Scalco, LTE, Cape Town.
11/11/1961: Wayne and Anthony Matthysen, WAM Agencies, Durban/Johannesburg.
11/11/1963: Thammo Schull, Capcorv Recycling, Germiston.
11/11/1964: Jacoba Nel, Conloo Joinery, Welkom.
12/11/1954: Kevin van Staden, retired, formerly Bolton Footwear, Port Elizabeth.
12/11/1966: Bevin Horwitz, agent, Pretoria.
12/11/1981: Gert Kruger, Mossop Western Leather, Cape Town.
13/11/1945: Eckie Schumann, Shoetech, Pinetown.
13/11/????: Indira Singh, retired, formerly Bellstedt, Pinetown.
14/11/1953: Bruce Lynn, emigrated.
14/11/1974: Norman Venks, HW Textiles, Hammarsdale.
14/11/1983: Ximena Farfan, freelance designer, Johannesburg.
15/11/1977: Mario Alves, Unikem Pinetown.
15/11/1971: Michelle Lambert, Freestyle Handmade Originals, Cape Town.
15/11/1971: Marcus Reddy, International Fabric Supplies, Durban.
16/11/1939: Danny Pincus, agent, Johannesburg.
15/11/1979: Warren Gedye, Michelle Footwear, Durban.
16/11/1950: Len Crozier, retired, formerly leather technician, Bronkhorstspruit.
16/11/????: Sonal Ambaram, JFK Trading, Durban.
17/11/1953: Andy Sandison, retired, formerly ACA Threads, Cape Town.
17/11/1966: Robbert van Schagen, Paris Avenue Boutique, Windhoek.

 

In Memoriam this week

12/11/1997: Angus Ogilvie, Ogilvie's Shoes [closed], Pietermaritzburg.
14/11/1989: Cyril Fletcher (b. 08/02/1930), Edcon, Johannesburg.
15/11/2002: Jody Woycieh (b. 12/11/1949), Sting Components [closed], Pietermaritzburg.
16/11/2018: Rosa Costa (b. 20/01/1932), formerly of the Superior Footwear Group, Harare.

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.

 

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:
Biodynamics Institute, Cape Town, W Cape, SA. Podiatry practice specialising in overall wellness.
Bischoff & Kahts Sports, Bethlehem, Free State, SA. Sportswear specialist.

 

Contact us

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

Next newsletter: November 18, 2019.

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

Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za

 

 

©2017 S&V Publications