Shopping in Iceland: Where to Shop, Malls, and Brands

Beyond the streets and malls, you'll want to know which Icelandic brands to seek out, what a sweater or souvenir costs, and how to claim your tax refund before you fly home. Locals lean on the charity shops for cheaper wool and the supermarkets for edible gifts, and the Ring Road hides small-town craft shops worth a stop. The downtown core is compact, so a day or two covers far more than you'd expect.

• Shopping hub: central Reykjavík, around Laugavegur and Skólavörðustígur streets.
• Malls: Kringlan mall in Reykjavík and Smáralind mall in nearby Kópavogur.
• Local crafts: Kolaportið flea market, open weekends in the Old Harbor.
• Brands to know: 66°North, Cintamani, Farmers Market, Geysir, As We Grow.
• Typical sweater price: a genuine hand-knit Icelandic lopapeysa costs about 45,000 to 85,000 ISK (roughly $358 to $675 / €315 to €594), as of July 2026.
• Accepted payment: cards and phone wallets work almost everywhere, so you rarely need cash.
• Tax refund: non-residents can reclaim VAT on receipts of 12,000 ISK ($95/€84) or more from a single store.

The best shopping in Iceland is in Reykjavík, since around 60% of the country lives in the capital area and the retail follows the people. Downtown, the independent shops cluster on Laugavegur and Skólavörðustígur, while everyday international brands fill the Kringlan and Smáralind malls. The weekend Kolaportið market and the city's charity shops are where locals dig for crafts and secondhand bargains. 

If you're driving the Ring Road, small regional shops and wool markets break up the drive too. Closer to home, the Reykjavík city guide maps the neighborhoods if you want to fit shopping around the rest of your sightseeing.

Reykjavík's two key shopping streets are Laugavegur and Skólavörðustígur, both walkable and packed with local shops and studios. The two streets meet near the city center, so you can cover both on foot in an afternoon, with the Old Harbor and Hafnartorg a short walk away.

Laugavegur is Reykjavík's main shopping street and one of its oldest. The name means wash road: women once carried their laundry along it to the hot springs in Laugardalur, where the whole city's washing was done. Today it stretches through downtown, lined with design shops, galleries, bookstores, and cafes, with bars and restaurants taking over in the evenings. Tourist shops along it often carry near-identical stock at different prices, so it pays to compare before you buy. The Red Cross shop here is a reliable stop for secondhand Icelandic wool.

Skólavörðustígur is the street for design and craft, climbing from Laugavegur toward Hallgrímskirkja along the painted rainbow road. Ceramic galleries like Kaolin, jewelry studios, the independent record store 12 Tónar, and the Handknitting Association of Iceland all line it. The shops here lean local and independent, so this is the stretch to browse if you want Icelandic-made pieces over chain-store stock.

Hafnartorg is a newer shopping and dining district between the city center and the Old Harbor, with more than 30 shops and restaurants that mix local labels with international brands. Nearby, the Kolaportið flea market opens on weekends, Saturday and Sunday from 11 AM to 5 PM, in a large hall at Tryggvagata 19. Inside, you'll dig for vinyl, Icelandic wool, and local food like dried fish and licorice, and half the fun is haggling. Bring cash, since most stalls are cash only, though there's an ATM at the entrance.

Iceland's two main shopping malls are Kringlan and Smáralind. Kringlan is the largest mall within Reykjavík and the easier choice from the city center. Smáralind, in neighboring Kópavogur, is the largest shopping center in Iceland and is more convenient for drivers. Both combine Icelandic and international brands with supermarkets, restaurants, cinemas, and services, making them reliable options when the weather rules out outdoor shopping.

Opened in 1987, Kringlan has more than 120 shops and services and over 20 places to eat. Its stores cover fashion, Icelandic outdoor clothing, beauty products, homeware, books, gifts, and groceries. Useful stops include Hagkaup, Bónus, Icewear, 66°North, and the Spúútnik vintage shop. The building also connects to a public library and Reykjavík City Theatre, while its third floor contains a cinema, restaurants, and family entertainment.

Kringlan is about ten minutes from central Reykjavík by bus. Routes 1, 3, 4, and 6 stop directly at the mall, while routes 2 and 13 stop beside it at Borgarleikhúsið. Parking is free. Shops open from 10:00 to 18:30 on weekdays, 11:00 to 18:00 on Saturdays, and 12:00 to 17:00 on Sundays. The KUMEN food hall remains open until 20:00 every evening.

Located in Kópavogur, Smáralind opened in 2001 and contains about 100 shops, restaurants, and services across three floors. Its selection includes Icelandic brands alongside international chains such as Zara, Weekday, H&M, and Levi's. The complex also has a Hagkaup hypermarket, pharmacy, cinema, gym, football-themed activity park, and the Garðurinn food hall, whose restaurants generally stay open later than the shops.

Smáralind is about a 15-minute drive or roughly a 30-minute bus journey from central Reykjavík. Bus routes 2, 21, 24, and 28 serve the mall. Drivers have access to nearly 3,000 free parking spaces, including charging points. Free strollers and wheelchairs are available from the service desk. Shops open from 11:00 to 19:00 on weekdays, 11:00 to 18:00 on Saturdays, and 12:00 to 17:00 on Sundays, although restaurants and entertainment venues keep separate hours.

Iceland's best-known clothing brands cover outdoor gear, fashion, knitwear, and kids' clothing, with wool at the center and a clean, practical Nordic look throughout. The outdoor names, in particular, were built around the country's weather.

Founded in 1926 to make protective clothing for fishermen in the Westfjords, 66°North is Iceland’s premium outdoor label. It has supplied Icelandic search and rescue teams since 1928 and is best known for technical shells, insulated jackets, and outerwear designed to work both outdoors and in the city. Most of its production now takes place in company-operated factories in Europe.

Cintamani has designed and tested outdoor clothing for Icelandic conditions since 1989, with practical options for hiking, skiing, and family travel. ZO•ON, founded in 1994, is particularly good for rainwear and warm jackets with cleaner city styling. Icewear began as a knitting workshop in Hvammstangi in 1972 and now has stores throughout Iceland. It offers the broadest mix of wool clothing, base layers, rainwear, and everyday outdoor gear, usually across a wider range of prices. When comparing jackets, check whether the label says waterproof or only water resistant. In Icelandic conditions, a genuinely waterproof shell worn over a warm midlayer is generally more useful than a single heavy coat.

Blending local wool with modern Nordic design, Farmers Market is a popular contemporary Icelandic fashion label with its flagship store and design studio in the Grandi area. Travelers continuing around the Golden Circle can also visit the Geysir Shop beside the Geysir geothermal area, which combines Icelandic clothing and home goods with a large souvenir selection.

For a broad introduction to Icelandic design in one place, Rammagerðin has stocked local design and handicrafts since 1940. Its Reykjavík stores bring together wool clothing, jewelry, ceramics, glassware, fragrances, skincare, art, and home accessories from brands such as Varma, Farmers Market, Fischersund, Hlín Reykdal, and Andrea Maack. It is a useful stop if you want to compare several Icelandic designers without visiting separate studios. Icelandic design does not always mean Icelandic manufacture, so read the product label if local production is important to you.

For individual fashion labels, Spaksmannsspjarir offers Icelandic women's clothing, while Aftur creates one-of-a-kind garments in Reykjavík from previously used textiles. Designer Hildur Yeoman is known for expressive prints and statement pieces. These labels are better suited to distinctive fashion purchases than to conventional Iceland-themed souvenirs.

Founded in 1977, the Handknitting Association of Iceland is the most reliable place for genuine hand-knit lopapeysur, made by its members and sold from its store on Skólavörðustígur. Varma is another trusted name that makes Icelandic wool knitwear and accessories. For more on patterns, prices, and sizing, the Icelandic wool sweater guide goes deeper.

For a useful Icelandic gift that children can actually wear, start with As We Grow. It’s the better choice for classic sweaters, cardigans, hats, and baby gifts in alpaca, merino wool, cotton, and linen; visit its store at Tryggvagata 23. Iglo+Indi, at Skólavörðustígur 4, is a better fit if you want colorful everyday clothes with playful prints, including dresses, tops, trousers, and babywear. Both are Icelandic design labels, but production may take place abroad, so look at the garment label if Icelandic manufacture matters to you.

Reykjavík's design studios and craft shops offer unique pieces and gifts you won't find in the chains. Kaolin on Skólavörðustígur is a cooperative gallery where ceramic artists show and sell their own work. Kirsuberjatréð, on Vesturgata in the old town, is a longtime collective of Icelandic women artists selling jewelry, fish-leather bags, ceramics, and other handmade items from local materials.

Iceland publishes more books per capita than any country in the world, so its bookshops are a real part of the shopping scene rather than an afterthought. The country releases most of its new titles in a pre-Christmas wave known as the Jólabókaflóð, the "Christmas book flood," when books become the gift of choice. The same goes for music, where record stores stock Icelandic vinyl and CDs you won't come across easily back home.

Founded in 1872, Penninn Eymundsson is Iceland's oldest bookstore chain with several branches in central Reykjavík, stocking Icelandic and English titles, stationery, and gifts. Mál og menning at Laugavegur 18, now known as Hús Máls og Menningar, is a multi-floor bar and performance space with books lining the walls for sale and live music most nights. Bókin on Klapparstígur is a secondhand bookshop open since 1964, with thousands of books stacked high, most of them in Icelandic. A few names in mind make any of these shelves less daunting, so it's worth reading up on the best Icelandic authors beforehand.

12 Tónar on Skólavörðustígur is Reykjavík's most famous record store, founded in 1998 as both a label and a shop, where you can sip an espresso on the couch and listen before you buy. Lucky Records on Rauðarárstígur is the city's biggest crate-digging spot for new and used vinyl, and the small Reykjavík Record Shop just off Laugavegur is tightly curated. All three carry Icelandic releases you won't easily find at home.

Reykjavík has a strong vintage and charity-shop scene, and it's where authentic wool costs far less than new. Buying secondhand isn't a tourist compromise here; it's how plenty of locals shop.

For the widest curated selection, start at Reykjavík's go-to vintage store, Spúútnik on Laugavegur 28b, or visit its second branch in Kringlan. Open since 1986, it sells vintage clothing, shoes, bags, and accessories. Its well-known kilo sale, where clothes are priced by weight, is a special event usually held in August, and it’s not a year-round offer, so confirm the shop’s current announcements.

Gyllti Kötturinn at Fiskislóð 26 in the Grandi harbor area is best for statement pieces, including vintage dresses, coats, furs, jewelry, and selected new items. Wasteland at Ingólfsstræti 5 has a large, eclectic selection of handpicked vintage sourced from the United States, Canada, and Japan, particularly jackets, denim, shirts, and streetwear.

For an affordable second-hand lopapeysa, try the Icelandic Red Cross shops before paying vintage-boutique prices. The most convenient Reykjavík branches are at Laugavegur 12, Laugavegur 116 near Hlemmur square, and inside Kringlan mall. They sell donated clothing, and Icelandic wool sweaters do turn up, but stock, condition, and sizing are unpredictable. Check the cuffs, underarms, and fiber label carefully before buying. Proceeds support the Red Cross’s humanitarian programs.

Góði Hirðirinn, “the Good Shepherd”, is a large reuse store operated by SORPA at Köllunarklettsvegur 1, northeast of central Reykjavík. It carries some clothing, but it is much better for second-hand furniture, books, records, kitchenware, electronics, toys, and household goods. Unless you want those items or enjoy a broad bargain hunt, it is not worth the detour for clothing alone.

Supermarkets are usually the cheapest places to buy Icelandic chocolate, licorice, sweets, and sea salt, often at lower prices than gift shops or the airport. Bónus, recognized by its yellow sign and pink pig logo, is usually among the least expensive chains. Krónan has similarly competitive prices and a strong selection of local snacks, while larger Hagkaup stores offer the widest choice but tend to cost more. Skyr is worth trying during your trip, but it is a poor souvenir because it requires refrigeration and dairy import rules vary by destination.

For a more distinctive gift, look for bars from Omnom, an award-winning Reykjavík chocolate maker stocked by supermarkets around Iceland. Supermarkets are the practical choice for standard bars, while Omnom’s chocolate and ice cream shop at Hólmaslóð 4 in the Grandi district carries its complete range, samples, seasonal products, and elaborate ice cream desserts. The factory no longer offers tours, so visit for the shop rather than expecting a production tour.

Beyond edible gifts, wool knitwear, skincare, and locally made crafts also rank among the best Icelandic souvenirs to bring home.

Around the Ring Road, small-town shops sell wool products, crafts, and designs you won't find in the capital, and they make a good reason to stop and stretch your legs on a long driving day.

On the south coast, an Icewear store in Vík stocks wool and outdoor gear, a useful stop if the weather turns. Heading into the east, Hús Handanna in Egilsstaðir is an art and design shop focused on East-Iceland makers, with rotating local artists and pop-up events. The shop is at the busiest crossroads in the center of town, so it's easy to pair with a fuel or food stop.

In the north, Akureyri is the most convenient place to browse outside the capital. Flóra, a concept store in the historic Sigurhæðir house downtown, gathers work from local designers, artists, and small producers, and just south of town, the Christmas Garden (Jólagarðurinn) sells decorations and crafts year-round.

Shopping in Iceland is expensive, but tax-free refunds and a few smart choices soften the blow. The country ranks among the priciest in Europe, and retail prices reflect it. As of July 2026, a genuine hand-knit lopapeysa from the Handknitting Association usually costs between 45,000 and 85,000 ISK (roughly $358 to $675 / €315 to €594), since a single knitter spends many hours on each one. Small edible gifts are the cheapest option: a standard Icelandic chocolate bar costs about 350 to 500 ISK ($3 to $4), while premium bars like Omnom cost over 1,000 ISK (about $8). Flavored sea salts cost more: an Arctic Natura or Saltverk jar costs about 1,790 ISK ($14 / €13), and a smaller box is around 1,390 ISK ($11 / €10). Prices above as of July 2026.

You can keep costs down in a few ways. Charity shops are the place for cheap secondhand knits, supermarkets like Bónus and Krónan beat gift shops on candy and edible souvenirs, and the VAT refund takes the sting out of larger purchases. Souvenir shops at attractions and visitor centers tend to charge more than stores in Reykjavík, so it's worth doing your shopping in town when you can.

Iceland is close to a cashless society. Credit and debit cards and phone wallets are accepted nearly everywhere; some places don't take cash at all, and you rarely need krónur in your pocket. The one common exception is the Kolaportið flea market, where some stalls take cash only. Tipping isn't expected, since service staff are paid a full wage.

Downtown shops usually open around 10 AM, with many closing by 6 PM on weekdays and some staying open later, especially in summer. Saturdays are shorter, and Sunday hours are limited or nonexistent. The malls keep longer hours and open seven days a week, which makes them the safer bet on a Sunday. In December, shops extend their hours for the holidays.

Visitors or permanent residents outside Iceland can claim a VAT refund on eligible goods they take out of the country. The refund is up to about 14% of the retail price, not the full 24% VAT, and processing fees may reduce the final amount. To qualify, spend at least 12,000 ISK (about $95 or €84) on one receipt at a participating store. Ask for a tax-free form when paying and keep the original receipt attached.

The goods must leave Iceland within three months and may need to be presented unused with your passport or other proof of residence. At Keflavík Airport, take the goods, receipt, and completed form to the refund desk in the arrivals hall, opposite the car rental desks, before checking in your luggage. Purchases above 100,000 ISK also require customs validation.

The most popular things to buy in Iceland are the lopapeysa wool sweater, Brennivín, local candy and chocolate, and geothermal skincare. If you're deciding what to bring home rather than where to shop, those are the staples, along with sea salt, jewelry, and harðfiskur (dried fish). Each one is properly local and easy to pack. With wool especially, read the label so you don't end up with an imported knockoff: "Handknitted in Iceland" is the real thing, while "Designed in Iceland" usually means it was made abroad.

Yes, many shops in Iceland stay open on Sundays, especially in Reykjavík. Kringlan and Smáralind are both open from 12:00 to 17:00, while supermarkets and many tourist-oriented shops in central Reykjavík also open, often with shorter hours. Smaller independent boutiques are more likely to close, so check individual listings before making a special trip. Kolaportið flea market is open every Saturday and Sunday from 11:00 to 17:00. Public-holiday hours may differ.

Kringlan is better for most visitors staying in central Reykjavík; choose Smáralind if you have a car or want specific stores found there. Kringlan is within Reykjavík and served directly by Strætó bus routes 1, 3, 4, and 6. It has more than 120 shops and services, a food hall, a cinema, and children’s play facilities. Smáralind is in Kópavogur and is Iceland’s largest shopping center, with around 100 shops, restaurants, and services, nearly 3,000 free parking spaces, a cinema, and stores such as Zara, Weekday, and H&M Home. The store selections overlap but are not identical, so consult the directories if you need a particular brand.

Expect to pay from 45,000 to 85,000 ISK (about $358-675 or €315-594) for a new, authentic hand-knitted lopapeysa, depending on its size, pattern, and style. Prices as of July 2026. Reykjavik’s Handknitting Association guarantees locally hand-knitted sweaters made from Icelandic wool, while craft markets and rural cooperatives may be cheaper but have fewer sizes and colors.

A second-hand sweater at a Red Cross shop may cost roughly 8,000-25,000 ISK ($64-199 / €56-175) as of July 2026, but donated stock varies in price, size, and condition, and authenticity may be difficult to confirm. The purchase exceeds Iceland’s 12,000 ISK tax-free threshold, allowing visitors living abroad to claim a VAT refund of up to 14%. Ask the shop for a tax-free form and have it validated before checking in luggage at Keflavík Airport.

Avoid whale and puffin meat if you want to support wildlife conservation. Both appear in some tourist-oriented restaurants and specialty shops, although neither is an everyday food for most Icelanders; puffin does, however, have a regional culinary history, particularly in the Westman Islands. Iceland’s national Red List classifies the Atlantic puffin as critically endangered, while an IFAW-cited 2018 survey found that 84% of Icelanders had never eaten whale meat and only 2% ate it regularly. Campaigns such as Meet Us, Don’t Eat Us encourage visitors to choose wildlife-watching instead.

Locals mainly shop at Kringlan, Smáralind, the Skeifan retail district, and neighborhood stores rather than relying on central Reykjavík’s souvenir shops. Kringlan and Smáralind combine Icelandic and international fashion, supermarkets, homeware, restaurants, and services, while Skeifan is useful for outdoor-clothing outlets, electronics, and larger everyday stores. Bónus and Krónan are the standard budget grocery options. Downtown, locals still visit Laugavegur and Skólavörðustígur for Icelandic design, specialist shops, and cafés. On weekends, Kolaportið is worth checking for vintage clothing, records, food, wool products, and second-hand finds.