"About 2.55pm a fist fight broke out right in front of me. I announced I was calling the police ... then some of these kids started hollering things like 'shoot him' and 'kill him'."
Mr Luke said a short time later a large group of young people gathered outside his shop.
"So I closed the doors and didn't open them again that day. There were so many of them - it was amazing."
Mr Luke said he told police he was being threatened.
"There were adults involved too, I was totally stunned.
"Shoppers don't feel safe, I don't feel safe and my wife doesn't feel safe walking down the street to the bank - this is insane.
He said he had seen more fights on Tutanekai St in three years than in his whole life.
"These kids are out of control ... I was truly shaken."
However, Mr Luke said he fully supported the police.
"The rank and file do a fantastic job, but this is a management issue," he said.
McLeod's Booksellers manager Fraser Newman said he witnessed part of the fight and was appalled with what he saw.
He said he wanted police to release CCTV footage of the incident to the media so the public could identify the adults involved.
"When police did arrive everyone scattered, so it shows what a police presence can produce.
"This feral behaviour undermines Rotorua's image, it's an embarrassment and it makes me angry," he said.
Rotorua Mayor Steve Chadwick said it was a bad look for the city.
"There's probably a lot more going on in town than at their own homes, but it's a very unfortunate incident.
"Leading up to Christmas we had a great response from police, but this is totally unacceptable behaviour.
"It's very frustrating when you are trying to do things like say Rotorua is a safe place, and I still believe it is.
"I've asked the owner to hang in there but I can understand his position," Mrs Chadwick said.
Rotorua police Inspector Ed Van Den Broek said staff had seen the CCTV images but were unable to identify the culprits.
He said situations like this could be intimidating for the public.
"Police have committed considerable resources to keeping youth disorder and associated problems to a minimum in the CBD over the school holidays.
"There have been extra police officers on beat patrol which has made a significant impact in reducing crime and disorder in the CBD."
Mr Van Den Broek said there were adults seen trying to stop the fighting.