Laugavegur

For open-air shopping, head to the Laugavegur shopping district. If it's winter, and you'd rather shop indoors, head to Kringlan. And just in case you want to bring back a distinctly Icelandic piece of fashion, look for some volcanic stone jewelry (Gullkúnst Helgu), a fish-leather handbag (Kraum) or a lopapeysa, a wooly knit sweater (Kisan Concept Shop). One Virtual Tourist calls walking down this street "wonderful." ,At night this shopping street (and the area around it) swells with people dining out, bar hopping or enjoying an evening coffee.