31 of 2018


Newsletter No. 31                                                                                 17 August  2018

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SA retails growth slows in June, with clothing outperforming other segments

South African retail sales for June 2018 grew by 2.9% year-on-year excluding the effects of inflation, marking the weakest pace of growth since October 2017. This is according to the Mastercard SpendingPulse June 2018 report, which provides a macro-economic analysis of retail spending trends in South Africa.

June’s retail sales volume was slightly below the 3% year-on-year gain recorded in May 2018 and signals the third consecutive month that the rate of growth has decelerated in South Africa’s retail sector. Total retail sales growth, including the effects of inflation, grew 5.8% year-on-year.

Price inflation

“While real spending in the retail sector remains in positive territory, we did see the rate of growth continue to slow in June. Retail price inflation also ticked up for the first time in a year, after bottoming out in May. This may further weigh on consumers in the coming months as they already face tight wallets due to weak wage growth and rising unemployment,” says Michael McNamara, senior principal, data and services at Mastercard.

“Slowing GDP growth in the first quarter, rising fuel prices and a strengthening US dollar also contribute to a challenging macro-economic environment,” McNamara says.

Segment performance

Clothing was the best-performing segment of the retail market in June, with sales excluding the effects of inflation rising 4.4% year-on-year. Overall, June sales were 8.4% above average for this time of year. Sales including the effects inflation were also up, growing 6.3% year-on-year.

The Pharmaceutical, Medical Goods, Cosmetics and Toiletry category once again performed well with sales excluding the effects of inflation growing 4.2% year-on-on-year for June 2018. Including the effects of inflation, sales grew 7.2%, meaning that inflation contributed only three percentage points to growth, compared to 3.6 percentage points in May.

In the Food and Beverages sector, sales excluding the effects of inflation grew 3.8% year-on-year in June, showing an improvement over the 1.5% growth rate of the first quarter in 2018. Sales including the effects of inflation grew 8.9%.

General dealer underperformance

Confirming a trend evident in most months of 2018, the General Dealer sector once again underperformed the rest of the retail market. General Dealer sales volumes excluding the effects of inflation fell 2.9% year-on-year for June 2018. Including the effects of inflation, General Dealer sales rose 3.6% year-on-year.

“As the benefit from lower food and oil prices runs its course, growth in consumer spending is expected to face an additional headwind from a higher value-added tax, which increased from 14% to 15% in April,” says McNamara.

SACTWU settles 2018 wage negotiations in the Blanket Sector

The Southern African Clothing and Textile Workers’ Union (SACTWU) has settled its 2018 wage negotiations in the Blanket Textile Sector.

The agreement was reached under the auspices of the National Textile Bargaining Council, between SACTWU and our employer counterparts as represented by the South African Blanket Manufacturers Employers’ Organisation (SABMEO).

It is a two year agreement and will cover metro and non-metro areas. For this year, the wage increase for metro areas is 8% and 14% for non-metro areas, respectively. For the next year, it will be a 6.5% increase for all areas.

The effective date of implementation for wage increases in the Blanket Sector is 1 August each year. For this year, it will be back dated to 1st August for those workers in the sector who have not yet received  the increases.

SACTWU is an affiliate of COSATU.

Issued by Andre Kriel SACTWU General Secretary.
If further information is required, kindly contact SACTWU’s  Blankets National Negotiator Louisah Modikwe on 082 297 2659.

Australia’s Base Titanium constructing ginnery in Kenya

Australian mining firm Base Titanium has partnered with farmers in Kenya’s Kwale county to construct a ginnery, a landmark $897,039 project for the revival of cotton farming in the country. The ginnery, to be located within a business park, aims at improving farming, ginning and garment production and is likely to be begin operations by 2019 first quarter.

Base is working with locals through Kwale’s Pamba and Viazi cooperative (PAVI), according to a report in a financial journal from East Africa.

The ginnery will support the miners’ cotton farming initiative launched in the area in 2014 under its community development programmes.
Base is planning to have at least 10,000 small-scale farmers involved in the programme by 2020.

The project has received backing from the Kenyan Government as well. The ginnery will feature six gins with a capacity to process up to 1,800 kg of cotton per day and capable of producing about 600 kg of lint each

Fashion set to pop at Bridge City this August

By Steven J Brown

Aspiring entrepreneurs and fashion lovers can look forward to an unforgettable pop up fashion experience – including a glam fashion exhibition space, fashion shows and some inspiring business and fashion advice from a top fashion panel – at Bridge City Shopping Centre in KwaMashu from August 17-19, 2018.

This forms part of Durban’s mega annual fashion event, the Durban Fashion Fair (DFF), who are celebrating their 7th year, which will be running concurrently with the Durban Business Fair who are also celebrating their 20th anniversary, at the Inkosi Albert Luthuli International Convention Centre between September 19th – 22nd with shows starting at 18h00.

The Bridge City fashion panel discussion will be taking place on Saturday, August 18th at 13h00 and will be hosted by popular TV personality and Ukhozi FM presenter, Selby Mkhize- otherwise affectionately  known as ‘Selbeyonce’. Our fashion panellists will focus on “The Business of Fashion & Industry Opportunities” and they include Mita-N Dzyns designer & creator Muzi Mlambo, as well as the founder of ‘Treasure Cindi’ who specialises in wedding and evening gowns.  Ukhozi FM’s entertainment commentator and founder of SA BLOGGERS, Sandile Sandy Nene, will also be on the panel, as well as fashion buyer, Sinqobile Trevor Ntombela, who has over a decade of experience in the retail industry. Our final panellist is Khulile Mavundla Lamula, who is the managing director at Enza Management Services and creative director at Imara Jewellery.

Business and fashion have always gone hand in hand, so this year’s DFF will run alongside the Durban Business Fair which aims to provide a platform for potential entrepreneurs to showcase their work and market their products whilst networking with big names in business and creating possible business linkages. Included will be a number of empowerment seminars, spearheaded by renowned business people who will share their business expertise with the public and fellow entrepreneurs.

Members of the public are encouraged to attend this exciting event and explore various business activities and you can catch all the latest fashion, when we showcase various designers creations modelled by the class of 2018, our “New Faces” within the fashion pavilion at 14h00 and 16h00 on Saturday & Sunday.

The Bridge City Indaba is set to commence at 08h00  until 15h00 over the 3 days and is free to attend.

Did you know……..

Facts about the 1920’s Fashion for Women

Art Deco fashions: Art Deco fashions came into vogue using strong primary colors and sharp, geometric shapes to convey the “modern” look. Art Deco clothes also inspired sleek, streamlined forms to convey elegance and sophistication in women’s fashions.

Knickerbockers: Amy Johnson borrowed the knickerbockers or jodhpurs trouser fashion from men as a comfortable and practical form of dress for female aviators of the era. The avant-garde style of knickerbockers, loose-fitting breeches gathered at the knee, were adopted as a fashion statement by women, often accompanied by a shirt and tie.

Bathing Costumes: Bathing costumes or suits became skimpier in the 1920’s. Necklines receded and arms were exposed as were legs up to mid-thigh as shown in the picture of 1920’s Hollywood movie star, Marie Provost. The swimsuits consisted of a long top that covered shorts, matching stockings were worn to complete the outfit. The most common fabric was a jersey material. Necklines receded from around the neck down to around the top of the bosom. The development of new fabrics allowed for new varieties of more comfortable and practical swimwear in the 1920’s.


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