KEY POINTS:
Retail spending is down, the economy's sliding and the price of everything is going up, up, up.
So now for some good news. Luxury goods retailers say the "credit crunch" is yet to hit New Zealand's financial elite, who are continuing to fuel the economy by splashing out on new Ferraris, $30,000 chandeliers and $20,000 sofas.
At Mercatini furnishing store in Auckland's Newmarket, "spontaneous" smaller purchases of $5000 or under were down, but discerning buyers who wanted beautiful things were still spending up large, said owner Lisa Bonaiuti. Dining tables worth $15,000 were selling as well as ever, as were the accompanying chairs at $1500 each.
At nearby Studio Italia, manager Valeria Carbonaro said she was nervous about profits but hadn't been affected yet.
"The people with money will always buy."
Georgi Noble, of Georgigregg Home in nearby Parnell, reckoned the super-rich were taking slightly longer to mull over big purchases before whipping out the platinum card.
But business was still good, with a $30,000 chandelier selling last week and $20,000 beds still popular.
A spokesman for Napier's Statements Gallery said buyers were still splashing out on contemporary New Zealand art, with items priced up to $15,000.
Caron Newby, of the Hamilton branch of Danske Mobler was ringing up a $12,000 sale when we phoned and said $4000 dining chairs were going fast.
The luxury car market is also strong, with Ferrari/Maserati customer services manager for Continental Cars, Brian Keating, reporting a rise in sales of new and used vehicles in May.
He sold a $280,000 Ferrari on Friday morning, while a brand new model priced "in the $600,000s" was delivered a couple of weeks ago.
