Reykjavik shopping runs on two currencies: the króna and the 24% VAT you can claim back. Between wool cooperatives selling hand-knitted lopapeysur, Skólavörðustígur's design studios and the Kolaportið flea market's fermented shark counter, the city packs serious retail into ten walkable blocks.
The knitters' own cooperative on Skólavörðustígur 19, open since 1977. Every lopapeysa is hand-knitted by one of roughly 200 Icelandic members, with the knitter's name on the label. Sweaters run 28,000–42,000 ISK; mittens from 6,900 ISK. Open daily 09:00–18:00.
Iceland's only weekend flea market, in a former customs warehouse by the Old Harbour, Saturdays and Sundays 11:00–17:00. Second-hand lopapeysur go for 8,000–15,000 ISK, plus Icelandic vinyl, old books and a food counter selling hákarl and rúgbrauð.
A women's art-and-design collective founded in 1992, at Vesturgata 4. Nine to eleven Icelandic makers sell fish-leather handbags, wool-felt lamps and mineral-dyed silk directly from their own studios. Fish-skin purses from 14,000 ISK. Open Mon–Sat 10:00–18:00.
Bean-to-bar chocolate made in a converted fish factory at Hólmaslóð 4 in the Grandi harbour district. Bars in the signature pastel wrappers cost 1,290–1,690 ISK; the licorice and sea-salt varieties are Iceland-only flavours. Shop open weekdays 09:00–17:00.
The uphill street toward Hallgrímskirkja is Reykjavik's boutique spine: Aurum for lava-textured silver jewellery at no. 22, Farmers & Friends wool outerwear at no. 21, and Fischer's herb-and-scent house at no. 12. Most open 10:00–18:00.
Reykjavik's largest independent bookshop, four floors deep with a first-floor café. Strong English-language Icelandic literature section — Laxness, Sjón and Yrsa Sigurðardóttir in translation — plus Ordnance Survey-grade hiking maps of the interior. Open daily until 22:00.
Two Icelandic goldsmiths casting miniature Viking-era objects — anchors, oars, ravens, tiny axes — in silver and gold, each piece tied to a saga motif. Silver pendants 18,000–35,000 ISK, gold from 90,000 ISK. Open Mon–Fri 10:00–18:00, Sat 11:00–17:00.
The parallel street one block north of Laugavegur has become Reykjavik's quieter design strip: Hverfisgallerí at no. 4 for contemporary Icelandic painting, Kiosk collective at no. 20 for independent fashion labels sold in rotation by the designers themselves.
The city-centre outlet for silica mud masks and algae creams, identical stock to the lagoon itself but without the entry fee. Silica mask 4,900 ISK, mineral shampoo 3,200 ISK, travel sets from 9,900 ISK. Open daily 10:00–19:00.
For edible souvenirs, skip the tourist shelves: Krónan and the harbourside fishmongers sell vacuum-packed harðfiskur (dried cod) at 3,500–5,000 ISK per 150g, birch syrup, Icelandic sea salt from Saltverk at 1,290 ISK and skyr in flavours never exported.
Founded 1940 as a framing workshop, now Iceland's oldest souvenir house, curating sheepskin rugs, Ástrid Design ceramics and reindeer-leather goods rather than plastic Vikings. Sheepskins 22,000–38,000 ISK, ceramic puffins from 5,900 ISK. Open daily 09:00–21:00.
The record shop and label that first released Sigur Rós and Múm, with listening chairs, free espresso and staff who will play you whole albums. Icelandic CDs 2,500–3,500 ISK, vinyl 4,500–7,900 ISK. Open Mon–Sat 11:00–18:00.