OPERATIONAL REVIEW: JORDAN & CO

Profile

Jordan & Co specialises in supplying men’s fashion and sports footwear, mainly to the domestic market.
Brands are positioned to be sold through various retail channels, being retail chains, discounters, wholesalers and independent shops, depending on target markets. Sales are also made directly to state and parastatal enterprises and to South African-based international sports companies serving the domestic market.

Year under review

2005 has been a year of a number of challenges and opportunities. Retail sales have surged in the year and Jordan’s main brands of Bronx, Jordan and Olympic have benefited from this, although there has been intense pressure on prices and margins as new importers have entered the market and major chains have emphasised their own house brands.

Jordan is determined to continue to provide a manufacturing service for a specific niche market, but has had to contend with a significant decline in its manufacture for international sports companies as they have consolidated their sourcing from overseas suppliers. This has required restructuring to match the manufacturing demand to capacity.

Jordan’s strategy continues to be to build its own brands and to exploit opportunities from its distributorship rights of international brands, of which Asics, the world’s best running shoe, is well established, and other brands, such as Sperry, Keds, Dr Martens, Tommy Hilfiger and Phat Farm are all being promoted although they are all in the early stages of growth.

Assured delivery and quality are essential and this requires increasing time and effort to effect continual improvements from our Asian sources of supply.

Jordan has a small chain of factory shops to clear excess stocks of both imported shoes and shoes manufactured from surplus materials and components.

Prospects

2006 looks promising, with total orders on hand being 9% higher, in real terms, which is considered more than acceptable considering that 2005 included significant orders from international sports sources which have now discontinued purchasing from us.

The expansion of the ladies’ footwear division and the focus on extending the Jordan product range to incorporate well-positioned international brands will continue to bear fruit in the medium and long term.

We look forward to continued success in this buoyant retail environment.