This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/world/2015/jul/16/sales-jewellery-tvs-cars-rise-greece-trust-goods-eurozone-crisis

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Sales of jewellery, TVs and cars rise as Greeks place their trust in goods Sales of jewellery, TVs and cars rise as Greeks place their trust in goods
(34 minutes later)
It is not every day that Zolotas, the high-end Greek jeweller, attracts a steady stream of local customers. But in recent weeks, its flagship store in the heart of Athens has seen a jump in business that few would ever have expected. “At the height of fears over bankruptcy and banks, we suddenly saw a rise in sales of our classic signature pieces of gold and diamonds,” said Marianne Le Clere Papalexis, the jeweller’s managing director. “Not that long ago, we had a customer, a middle class Greek I’d say, who wanted to buy a million euros’ worth of jewellery via bank transfer. We just had to say no because, we, too, were fearful of what might happen to the banks.” It is not every day that Zolotas, the high-end Greek jeweller, attracts a steady stream of local customers. But in recent weeks, its flagship store in the heart of Athens has seen a jump in business that few would ever have expected. “At the height of fears over bankruptcy and banks, we suddenly saw a rise in sales of our classic signature pieces of gold and diamonds,” said Marianne Le Clere Papalexis, the jeweller’s managing director. “Not that long ago, we had a customer, a middle-class Greek I’d say, who wanted to buy a million euros’ worth of jewellery via bank transfer. We just had to say no because, we, too, were fearful of what might happen to the banks.”
The Greek crisis is being played out in odd ways. On the streets of Athens, in luxury shops off avenues where beggars lie prostrate, panic-buying has ensured a surge in sales. Zolotas, made famous by the likes of Jackie Onassis and Elizabeth Taylor, is far from being alone.The Greek crisis is being played out in odd ways. On the streets of Athens, in luxury shops off avenues where beggars lie prostrate, panic-buying has ensured a surge in sales. Zolotas, made famous by the likes of Jackie Onassis and Elizabeth Taylor, is far from being alone.
Since the closure of banks and imposition of capital controls at the end of June, the country has witnessed a mini consumption boom that has defied trends seen through six long years of recession. Sales of cars have reportedly gone up – spurred by fears of Greece heading either for the euro exit door or a Cyprus-style ‘bail-in’ which might dock considerable amounts off holdings. A rise in VAT, due to take effect on 20 July, has been another factor. Since the closure of banks and imposition of capital controls at the end of June, the country has witnessed a mini consumption boom that has defied trends seen through six long years of recession. Sales of cars have reportedly gone up – spurred by fears of Greece heading either for the euro exit door or a Cyprus-style “bail-in” which might dock considerable amounts off holdings. A rise in VAT, due to take effect on 20 July, has been another factor.
“Last week, white goods, fridges and ovens, that sort of thing, began to sell like hot cakes,” said Sophia Saratsi who runs an electronics appliance store on Dragatsaniou street, not far from the National Bank of Greece. “For a few days, we were all really taken aback.” “Last week, white goods – fridges and ovens, that sort of thing – began to sell like hot cakes,” said Sophia Saratsi, who runs an electronics appliance store on Dragatsaniou street, not far from the National Bank of Greece. “For a few days, we were all really taken aback.”
On Thursday, Dixons reported that its Greek arm, Kotsovolos, was seeing big-ticket items fly off the shelves. Several outlets of Kotsovolos said they had run out of flatscreen TVs owing to demand. “The business in Greece delivered strong like-for-like revenue growth during the year, with most categories performing well, in particular large-screen TVs,” the company said. Fridges, freezers and other white goods have also been selling well. On Thursday, Dixons reported that its Greek arm, Kotsovolos, was seeing big-ticket items fly off the shelves. Several outlets of Kotsovolos said they had run out of flatscreen TVs. “The business in Greece delivered strong like-for-like revenue growth during the year, with most categories performing well, in particular large-screen TVs,” the company said. Fridges, freezers and other white goods have also been selling well.
Related: The crucifixion of Greece is killing the European project | Seumas MilneRelated: The crucifixion of Greece is killing the European project | Seumas Milne
The firm’s chief executive Sebastian James said fears of the Greek banking system’s collapse appeared to have encouraged consumer spending in the country, as consumers with cash stored at home decided to spend it on items that would hold their value. The company’s finance director Humphrey Singer said that Kotsovolos had seen a particular jump in sales in the days after capital controls were introduced. The Dixons chief executive, Sebastian James, said fears of the banking system’s collapse appeared to have encouraged consumer spending in Greece as people with cash stored at home decided to spend it on items that would hold their value. The company’s finance director, Humphrey Singer, said that Kotsovolos had seen a particular jump in sales in the days after capital controls were introduced.
“If you’re not sure the banks are going to exist for long and you’ve got money in your account why not spend it?” asked Loucas Ioannou, a coffee shop owner, in what has fast become a common line of thinking. “A lot of my regulars have been going out on shopping sprees because they don’t want to lose their money to some [bank] haircut. They want to have something to show for their savings.” In what has fast become a common line of thinking, Loucas Ioannou, a coffee shop owner, asked: “If you’re not sure the banks are going to exist for long and you’ve got money in your account, why not spend it? A lot of my regulars have been going out on shopping sprees because they don’t want to lose their money to some [bank] haircut. They want to have something to show for their savings.”
Although cash withdrawals from banks have been limited to €60 a day since the restrictions were announced, credit card usage and e-banking have both continued unencumbered.Although cash withdrawals from banks have been limited to €60 a day since the restrictions were announced, credit card usage and e-banking have both continued unencumbered.
That in turn has lead to a pleasant surprise for Greece’s cash-strapped state: revenues have risen in the form of VAT.That in turn has lead to a pleasant surprise for Greece’s cash-strapped state: revenues have risen in the form of VAT.
Anxiety over Greece’s future in the eurozone has not only been limited to binge spending. Accountants have reported a massive increase in Greeks wanting to go out of their way to pay taxes and other outstanding bills. “Clients want to access their accounts, access their money, and that’s one way of doing it,” said Dimitris Koukakis, who runs an accountancy office in Athens.Anxiety over Greece’s future in the eurozone has not only been limited to binge spending. Accountants have reported a massive increase in Greeks wanting to go out of their way to pay taxes and other outstanding bills. “Clients want to access their accounts, access their money, and that’s one way of doing it,” said Dimitris Koukakis, who runs an accountancy office in Athens.
Fear of political instability has also encouraged mass spending, according to officials at Athens University. Prime minster Alexis Tsipras’ shock decision to hold a referendum over the economic demands of foreign lenders earlier this month emboldened Greeks to dig into their pockets for education. “The very next day applications for our courses and educational programmes shot up,” Rania Galanopoulou, a course administrator, told the Guardian. “And a significant number wanted to pay. It came as a surprise to all of us.” Fear of political instability has also encouraged mass spending, according to officials at Athens University. Alexis Tsipras’s shock decision to hold a referendum over the economic demands of foreign lenders earlier this month emboldened Greeks to dig into their pockets for education. “The very next day applications for our courses and educational programmes shot up,” said Rania Galanopoulou, a course administrator. “And a significant number wanted to pay. It came as a surprise to all of us.”