Important Notice and Basis of Preparation

Jump to section

• Overview & contents
• i. Important Notice and Basis of Preparation
• 1. Allocation: What You Are Allowed to Sell
• 2. Executive Summary
• 3. The Size Curve: Where Footwear Margin Is Lost
• 4. The Store and the Channel
• 5. SWOT and Competitive Position
• 6. Organisation and Compliance
• 7. Financial Plan
• 8. Break-Even and Debt Service
• 9. Investment Analysis
• 10. Sensitivity and Scenario Analysis
• 11. Risk Analysis
• 12. Implementation Roadmap
• 13. Key Performance Indicators
• 14. Key Assumptions
• 15. Conclusion and Recommendation
• A. Appendix A: Consolidated Financial Summary
• B. Appendix B: Allocation, Size Curve and Store Schedules
• C. Appendix C: Funding, Debt and Stock Schedules
• D. Appendix D: Risk Register
• E. Appendix E: Glossary

This business plan has been prepared for Kasi Kicks (Pty) Ltd, a proposed multi-brand sneaker and footwear retailer for Gauteng, opening with two stores of about 185 m² each and building to four by Year 4, supported by a central warehouse, a merchandise planning function and an online channel.

Basis of the figures. Revenue is built from stores, pairs sold per store, the allocation mix and the realised price after markdown. It is not a growth rate applied to an assumed base. The income statement, balance sheet and cash flow statement are fully articulated: the balance sheet is derived rather than plugged and balances to the rand in every year, and the closing cash position reconciles exactly to the cash flow statement.

Selling prices, allocation shares, store volumes and the size curve are modelled. Allocation in particular is negotiated brand by brand and store by store, and a new independent retailer should assume it will receive less limited product than this plan allows for until it has traded for two seasons.

The single largest risk in this plan is not addressed by any operational improvement: the business depends on brand supply agreements it does not control, in a market where the largest competitors have far greater buying power. Section 2 sets that out plainly rather than burying it in the risk register.

Published benchmarks. The South African athletic footwear market reached US$901.4 million in 2025 and is projected to reach US$1 102.7 million by 2034, a compound annual growth rate of 2.15 per cent over 2026 to 2034. Gauteng commands the largest regional share at 39.2 per cent, supported by Johannesburg and Pretoria’s dense retail networks and higher disposable incomes, and running shoes hold the leading product position at 36.8 per cent. Retail power is held by groups including TFG — which operates Sportscene, Totalsports and Sneaker Factory and has brought JD Sports to South Africa — together with Studio 88, Pepkor’s Tekkie Town, Mr Price Sport and Truworths; Frasers Group completed its acquisition of the Holdsport group, including Sportsmans Warehouse, Outdoor Warehouse and Shelflife, in 2025. The market is import-reliant, with Vietnam, China and Indonesia the dominant supply origins. Industry commentary reports that full-price sell-through across fashion has fallen from a norm of 70 to 75 per cent toward roughly 50 per cent at many retailers. The national minimum wage is R30.23 an ordinary hour. These are cited where used.

Taxation. Small Business Corporation rates are applied while turnover remains below the R20 million threshold, and the standard corporate rate of 27 per cent thereafter, with early losses carried forward subject to the section 20 limitation.

Confidentiality. This document is delivered in confidence to the named recipient. It may not be reproduced or circulated in whole or in part without prior written consent.