This is the place to pick up local arts and crafts, especially Cusco’s famous hand-woven textiles, which are considered to be the best in the country. One great shopping location is the area around the Plaza de Armas. Check out Triunfo and Plateros and be prepared to haggle. Not only is it accepted, but it is actually expected, and merchants are likely to hike up the price if they can see that you’re new to Cusco. Once you’ve come to a fair price, however, be gracious as not to insult the artisan.

It is impossible to shop in Cusco without being bombarded by ponchos, shawls, scarves, blankets, hats, gloves, and sweaters made of alpaca wool. Though alpaca products are everywhere, it is in your best interest to stick to stores that specialize in alpaca fashions; they are definitely worth the extra money. Some of the better stores include Artesanias Quipu Cancha on Plateros, Alpaca 111 on Plaza Recocijo, Alpaca’s Best on Plaza Nazarenas, and Alpaca 3 on Calle Ruinas.

Other popular items include jewelry, pottery, antiques and intricate woodcarvings, and the best selections can be found in the San Blas district. And if you want to shop with the locals—for, say, groceries and household items—go to the Mercado Central near the San Pedro rail station. You can find almost anything you need and get a taste of traditional Cusco at the same time. But do watch out for pickpockets.

The San Pedro Market has several handicraft stalls near the front of the market. The prices here appeared to be lower than around San Blas and Plaza de Armas. This is a good place to pick up that T-Shirt for dad and other simple souvenirs. Also a great place to pick up an extra duffel bag for all of those souvenirs you bought. A little further into the market you can find authentic pottery for excellent prices.