Hip fashions, designer jewelry, cutting edge music and sturdy outdoor wear – Iceland’s got it all Reykjavik may very well be the best-kept secret of the cosmopolitan shopping enthusiast. Despite rumors that Reykjavik is an expensive city, its prices are generally on a par with those in New York. And when it comes to high fashion or designer wear, Reykjavik prices are almost always more reasonable. What gives? Well, in Reykjavik the markup is lower, thanks to reasonably priced retail space and lower overhead. Add to this the 15% tax-free refund for tourists - off a minimum purchase of 4,000 ISK (less than US $60) - and you may wind up with some excellent buys indeed. Incidentally, price tags in Iceland always include sales tax.

The selection of goods available is also impressive. From warm woolens to beautifully crafted pottery and glass to resilient outdoor wear, you’ll find it all here. The nation’s best buys include:

Outdoor wear: If anyone knows how to make outdoor wear practical, durable and fashionable, it’s the Icelanders. Brands like 66 Degrees North and Cintimanni create great looking and hard wearing outdoor clothing that you can use on any of your hikes or just when you need to be warm. Stock up on everything from fleece to hiking socks (highly recommended!)

Wool wear: The traditional Icelandic lopapeysa, a knitted wool sweater with special design at the top and on the sleeves, is now a must-have fashion item. Worn for practical reasons by farmers and fishermen, the sweater (or its variations, including button or zipped cardigan) is one of the trendiest items around. You can also buy high quality woolen scarves, gloves, hats and blankets, all made from Icelandic wool.

Fashion and accessories: Iceland is home to many great fashion brands you are already familiar with, as well as some smaller, more specialized, ones. Stores likes Flex and Kron have great independent labels from all over the world, as well as jewelry. There are also a number of shops where you''ll find eyewear, shoes, handbags and more, all in some very creative designs!
CDs and books: You have probably heard of Björk and the Sagas. But Iceland has a lot more to offer the worlds of literature and music. You can buy some of the best up-and-coming Icelandic music here at a fraction of the import price you would pay back home. Impress your friends with music from the hippest acts like Sigur Rós, Singapore Sling and Mugison. There are also terrific photographic books on all things Icelandic, as well as English translations from well-known authors, including the Nobel Prize winning Halldór Laxness.

Jewelry: Local designs have been celebrated as of late for their observation of Celtic and Old Norse patterns. Artists often incorporate gold or silver with materials found in Iceland, like lava rock, and the effect is very eye-catching. You can also commission your own design. This is very popular for wedding rings, which many people buy in Iceland.

Icelandic Couture: Reykjavík is full of boutiques and shops which feature the unique work of Icelandic designers using a variety of styles and materials. Great for finding a really unusual, yet incredibly stylish, piece of clothing. You can find something for all ages, shapes and sizes.

Artwork: Artists in Iceland often take their inspiration from the country’s outstanding nature and surroundings, or from its literary history. From paintings to sculptures to pottery and glass work, you’ll find all sorts of creative designs here, both small and large.

WHERE TO GO Icelanders have a great deal of affection for their atmospheric "old city center", which in addition to top-of-the-line stores, has a great number of excellent cafes, restaurants and bars. Starting at the top of Laugavegur (Reykjavik''s main shopping street, which is one mile long) and making your way westward, you will find a number of exclusive boutiques and fashion stores. But there''s more than just clothes to Laugavegur. There’s accessories, children''s clothes, fine porcelain, leather goods, cosmetics, lingerie, books, CDs and plenty more.

UNDER ONE ROOF Iceland has two large indoor shopping malls, Kringlan and Smaralind, both in the Reykjavik area. The selection is diverse and designer labels, both American and European, abound and there are services for watching the little ones while you head off in search of bargains. Kringlan is located within walking distance of several of the city''s main hotels. It is easily accessible by bus from the old city center and has ample free parking. Smaraland is in the town of Kopavogur, a short bus ride from the city center. It also has the city’s largest movie complex – perfect for catching the latest releases on those rainy nights. (All movies are shown in their original language with subtitles in Icelandic.)

MARKET Bargain hunters should also check out Reykjavik''s only indoor market, Kolaportid. Essentially, it is a large garage sale, though some stands are permanent. Great buys can be had there on handmade Icelandic sweaters and other woolens, CDs (both new and used), toys, and sometimes shoes. Kolaportid''s food section is a tourist attraction in its own right, with its traditional Icelandic fare of pickled herring, cured shark, dried fish, and various other delicacies. Kolaportid is open weekends from 11-5.

WHEN TO GO The main shopping streets in Reykjavík are Laugavegur and Skolavordustigur. Most stores here are open from 10.00 – 18.00 on weekdays and from 11.00 – 16.00 on Saturdays. Clothing stores are usually closed on Sundays but the record and bookstores will be open. For longer shopping hours, visit either Kringlan or Smaralind Shopping Malls.

Kringlan and Smáralind both have a number of major stores for clothing, accessories and books / souvenirs. These include Zara, Next, Debenham’s, Fat Face, and many others.