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The main shopping downtown is on and around Austurstræti, Aðalstræti, Hafnarstræti, Hverfisgata, Bankastræti, Laugavegur, and Skólavörðustígur.
Alcohol is not widely sold in grocery stores in Iceland—you have to visit government-run liquor stores. They're usually open no later than 8 pm on weekends, and that's where the planning comes in. There are a number of locations around Reykjavík and throughout the country. Just be warned: alcohol in Iceland is not cheap.
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