Every time visitors come to Berlin Berliners (well especially West Berliners) like to say "You simply must visit Kadewe, it is the Harrod's of Berlin" Two of my guests were even told to visit Kadewe by well meaning Germans. It is basically a gigantic upperclass shopping center and while they have a nice food section (I think it is the only place in town to buy unprepared raw sushi for sushimaking) there is nothing especially charming or alluring about it. If anything you will be jostled by a lot of fat Francophilic overweight German matrons in mink coats and eastern European tourists waving credit cards. so tasteless!
Unique Suggestions: check out the wine or beer section because they have a nice selection especially of German wines
Fun Alternatives: Check out the more interesting and smaller shops on Mehringdamm in Kreuzberg.
KaDeWe, a famous department store at Ku-Damm is where I bought the most expensive baguette in my life. 5 DEM (2,5 EUR), how about that? OK, my friend and I were really hungry so we just bought the first food we could find. Ironic enough, there was a small shop around the corner selling bread at 1 DEM... Anyway, what's the moral of this story? If you're on backpacker budget, KaDeWe is there for looking and not for shopping. It is beautiful indeed - I recommend a quick tour.
The Europa Center and the shops and places around it. Be careful. The icecream place outside around the fountain in the picture is completely overpriced!