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"The general atmosphere is one of despondency -- there are a lot of closed shops and a lot of businesses are having to cut prices drastically," reports owner Michael Prato.
"Everyone wants to cheer themselves up, indulge themselves, as long as it's under $100," Mr Prato said.
"With our more expensive items, people spend months, sometimes even years, making a decision. But things under $100, such as Afghan leather-lined socks for $25, are just walking out the door. Because they're cosy and practical." Mr Prato said rising interest rates and petrol prices had drastically damaged sales since 2002 and it was noticeable that people now had more money to spend since prices and rates had come down again.
THE staff at Afghan Interiors in Sydney's trendy inner suburb of Newtown don't have to look very far to see evidence of the economic downturn.
Up and down famous King Street they can see shops closed or bright red sale signs.
"The general atmosphere is one of despondency -- there are a lot of closed shops and a lot of businesses are having to cut prices drastically," reports owner Michael Prato.
"There are a lot of 40 per cent sales going on at the moment."
Ironically, with the release of figures showing NSW has suffered a 2.4 per cent fall in retail sales, and the rest of the country also going through difficulties, Afghan Interiors has had one of its best weeks since moving to Newtown six years ago.
"Everyone wants to cheer themselves up, indulge themselves, as long as it's under $100," Mr Prato said.
"The pre-Christmas stimulus package was noticeable in its effect; and as for the most recent stimulus package, we can certainly say March has been much, much better than February -- 50per cent better, in fact.
"With our more expensive items, people spend months, sometimes even years, making a decision. But things under $100, such as Afghan leather-lined socks for $25, are just walking out the door. Because they're cosy and practical." Mr Prato said rising interest rates and petrol prices had drastically damaged sales since 2002 and it was noticeable that people now had more money to spend since prices and rates had come down again.
"People are once again finding they have money to spend, but they are adopting a much more cautious approach," he said.
"The crucial issue is whether people can keep their jobs. Everyone is worried about unemployment. I often hear the customers talking about it."
Shop assistant Carmel Byrne said Afghan Interiors had survived in a difficult retail climate because the shop had established itself with a niche market of unusual objects and textiles.
She said customers had become noticeably more choosy since the economic downturn and much slower in making their decisions, but in a strange way seemed relieved not to be caught up in the status-building buying frenzies of bygone days.
"It is not about conspicuous displays of wealth any more, it is about making your own environment at home more comfortable and more expressive," she said.
"People are looking for things that resonate, that make them feel good in their own home. The textiles here are hand-beaded, the clothes hand-stitched, thefurniture hand-carved ... and that appeals to people at this time."
Credit: John Stapleton
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