I am very excited to shop in Florence for leather goods. We will primarily be looking for smaller items - wallets, etc. I would like to purchase a leather ladies' briefcase as well.

Where is the best area in Florence to look for these things?

Near Santa Croce--the area must have 30 shops. Yes you can bargain.

You'll find exellent quality leather goods at the Leather School in Santa Croce. Everything from luggage, briefcases, desk sets and organizers, to handbags, purses, wallets, belts, lipstick cases, and bookmarks.

The Leather School has a huge assortment of smaller items in the back.

16 Piazza S. Croce is the Scuola del Cuoio (leather school) located in the Monastery S. Croce.

The part of the central market that features leather goods often has excellent buys--as long as you bargain.

If you are looking for anything brand name, I like Mandarina Duck, a very well-known Italian brand from Bologna with shops all over Italy. Its shop in Florence is on via Calzaiuoli. They have different lines and modern shapes; definitely a brand you can't find in the States except perhaps on e-Bay. The Alphaduck line in the very dark greenish/black is my favorite. My briefcase has aged well from them. Excellent quality and you can get the luxury tax refunded upon leaving Italy. This just as another option since other Fodorites recommended the leather school's shops that have good quality but bargain anyway.