18 Best Places to Shop in Reykjanes Peninsula and the South Coast (with the Golden Circle), Iceland

Icelandic designer Andrea Magnúsdóttir runs this bright and welcoming boutique by the harbor. Her selection of beautiful dresses and sleek handbags make it tough to leave empty-handed.

This charming gift shop showcases handmade works from over 20 local artisans. From traditional Icelandic wool sweaters and handcrafted jewelry to greeting cards and artwork, the selection is thoughtfully curated, unique, and unlike anything you'll find anywhere else. Overall, it's the perfect stop for a one-of-a-kind souvenir.

Behind a green door, right off the main road that leads through Selfoss, is a collection of beautiful curios waiting to be discovered. Gallery Flói is the pride of Fanndís Hulda, a local artist who makes glass beads, ceramics, handmade candles, and much more, all of which are popular gift items with locals and tourists alike. Opening hours change seasonally, so make sure to check online before you go.

This darling craft store offers a cozy collection of traditional Icelandic knitting and hand-crafted sweaters, each made with care by local artisans. Opening times can vary, so make sure to check their Facebook page or call in advance.

In front of a parking lot, close to Geysir, is this large shopping complex where you'll find established Icelandic outdoor and fashion brands, a souvenir shop with Viking-theme key chains, and a soup and fast-food canteen.

While traveling through Iceland, you will come across beautiful hand-knit sweaters in all kinds of colors and patterns. If you already know how to knit or you want to learn, this store offers kits with everything you need to make a traditional Icelandic sweater that will last you a lifetime.

This nonprofit wool workshop is housed in an old white house by the Ring Road. Since the 1990s, local women have been knitting here and selling their wares, including lopapeysa (the iconic Icelandic wool sweater that has kept Icelanders warm for centuries). They also sell yarn and knitting needles, so visitors can learn how to make their own sweaters.

In case you forgot your toothbrush, there is a small supermarket in town where you will find all necessities. It also has some quick food options like sandwiches, which are handy for a road trip or a small picnic by the scenic beach in Garður.

This classic countryside supermarket offers all the necessities for locals, including some fantastic burgers. It makes a smart pit stop before heading farther east or west, as supermarkets tend to be far apart.

This is the only supermarket in the area, so if you are in need of any necessities or want to grab a snack for the late-night munchies, energy drinks for hikes, or have a romantic picnic by the river, make a pit stop here.

If you walk about 100 meters (328 feet) farther than the Secret Lagoon, you will find a small boutique tucked away behind a big greenhouse. This is the storefront and workshop of the Icelandic clothing brand Kurl Project, which is all designed and produced in Iceland by tailor and owner Erna Óðinsdóttir.

In this charming little corrugated iron house you will find traditional sweets, handmade soaps, and postcards depicting views of Eyrarbakki. Stepping into the shop feels like entering a small museum; it is styled after a convenience store managed by the legendary Guðlaugar Pálsson from 1919 until his death in 1993. Be aware that it's only open on weekends and sporadically in the winter.

What used to be a charming and tiny design boutique is now a beautiful and spacious store located in the heart of Hafnarfjörður. They carry a wide selection of gifts by trendy Icelandic and Scandinavian designers, including posters, ceramics, jewelry, and much more.

Featuring 20 restaurants and a selection of shops, the Selfoss Centre is a must-visit. Art lovers can pick up some local pieces at the Listasel Gallery co-op while fashionistas can drool over the jewelry at Gullfoss. No visit is complete without a bouquet of fresh flowers from 1905 Blómahús.

One of the most beloved jewelry stores in Iceland was founded by a Finnish-Icelandic couple, who are known for their romantic yet timeless designs that you can wear for a lifetime. Their expertise in working with precious metals and stones makes their engagement rings very popular with couples from all over the world.

At this charming little farmers' market, you can grab locally grown Icelandic produce, freshly baked bread, handicrafts from local artisans, and so much more. You'll also find some of the best takeaway coffee in the area—roasted right here in Iceland—so make sure to grab a cup on your way in or out. 

In Iceland, you can only buy beverages stronger than 2.25% ABV in state-owned liquor stores called Vínbúðin. They can only be found in some of the bigger towns, so make sure to make a pit stop when you see one.