I don’t go to Reykjavik to shop [apart from visiting the record shops of course], but that said it’s enjoyable to mooch in and out of the tourist shops and stores trying to work out if one can actually afford to buy anything! There are loads of trolls and puffins to choose from and also penguins [which are rarely seen in Iceland!]. Laugavegur and Rainbow Street leading up to Hallgrimskirkja are good places to start, there are plenty of cafes and bars here too. The Kringlan Shopping Mall is outside of the town centre past Perlan.
If you have a completely warped sense of humour you may consider purchasing a comic book or two by Hugleikur Dagsson. He covers topics most comedians would not touch with a barge pole! You will find his books in tourist shops, Harpa’s shop and bookshops. He also has a range of clothing which are really amusing or just plain wrong, depending on your stance !
Grunty tip- Keep your receipt and ask for a tax form when purchasing from the shops as you may be able to claim the tax back at the airport, which is most helpful.
There are loads of of clothing shops in the town centre selling quality clothing at quality prices. The hand made lopapeysa [and the cheaper machine made] wool jumpers are wonderful and I cherish the one I bought a few years ago. There is a huge selection of them just down from Hallgrimskirkja in the Handknitting Asssociation of Iceland Woolshop.
You may be able to get a real bargain and something truly unique in one of the Icelandic Red Cross shops in Reykjavik, I like the one on Laugavegur by Hlemmur. Don’t forget to keep your receipt and get a tax form.
Kolaportið- The Flea Market
The Fleamarket is near the harbour and is only open on saturday and sunday. It advertises itself as- Iceland’s #1 Fleamarket– but it is in fact Iceland’s only ! It’s a real muddle of a market selling fresh food, quality new items such as lopapeysa as well as antiques and second hand items as well as cheap imports and the truly bizarre.