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If you’re a shopaholic, Reykjavík is somewhere you could go cold turkey. There are some idiosyncratic fashion and craft shops selling Icelandic specialities from knitwear to wooden bowls and jewellery, and you can get hold of some interesting Icelandic literature and music at not too eye-watering prices, but in the main shopping in Reykjavík cannot compete with any of Europe’s capital cities. The centre is full of tourist shops selling the usual postcards and trinkets, but wander up Skólavorðustígur and browse through the craft shops for something more personal. Shopping malls like Smáralind in Kópavogur and Kringlan have English, European and American shops, though goods are more expensive than those you’ll find on Laugavegur, the main shopping street in the city. Shops are generally open Monday-Saturday 1000-1700, with the exception of the out-of-town malls and supermarkets and Mál og Menning bookshops, which are open later, and Kolaportið which is open on Sundays.
You’ll find that some things are expensive, like food in general, but other things aren’t so bad. Jewellery, in particular Icelandic gold and silver, is very good value and you can pick up a uniquely designed bargain here. Designer clothes are often more reasonably priced here too, especially if you claim VAT back at the airport. Icelandic wool is rightly famed for its softness and warmth, but you won’t see many people wearing the traditional Icelandic jumper, the lopapeysa or lopi, except for the occasional tourist and it’s a highly priced souvenir at around ISK 8000.
Skólavörðustígur, with its many boutiques and galleries, is one of the best places to start looking if you want to take home some Icelandic art or design, while Laugavegur is where you’ll find Prada as well as many individual boutiques, plus the impressive bookshop Mál og Menning, which has other outlets in the city, and some craft shops. The fact that this is the main shopping street in Reykjavík isn’t exactly a well-kept secret – there’s even a huge sign above it telling you. It’s obvious that this is the place to be because there aren’t that many shops in town itself. Reykjavík is the cheapest place in Iceland to buy things as shopkeepers in smaller towns take advantage of their monopoly to hike up prices.
Off-licences are state controlled and very expensive compared with normal European prices; these shops make bringing your duty-free limit into the country worth it. An average bottle of wine costs around ISK 1300 and a four-pack of beer is about ISK 850.
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