This is Arequipa’s (if not Peru’s) most reputated sweet and chocolate industry. Here you can find all sorts of chocolates (milk chocolates are my favorites), mazapanes, toffees with diverse stuff (0range, lemon, peanut, etc.), etc.
You can also find other chocolate products like dolls, bunnies, etc.
La Ibérica also has a stand at the duty/free of both airports of Arequipa and Lima. Give it a try!
What to pay: Very reasonable prices
The local's market is one of those magic parts so integral to South America. Within its confines, you will find not only great fruits and vegetables but freshly butchered meat, fish, and local cheeses. It's also a great place to sample local foods at great prices. Though it's considered a "dangerous" part of town, we found it fascinating and really quite safe as long as you keep your wits about you.
What to buy: There is a great array of exotic fruits and the cheese stand was fantastic. We had the best cheese of the trip from there.
What to buy: As you travel through Peru, you'll find that everyone had pretty much the same products. That being said Arequipa is a great place to shop because the prices are as good or better than elsewhere, the vendors are less pushy than in other places, and there are various stores with high quality goods. If you're buying basic knitted goods, you'll probably be able to find them for cheaper in Colca Valley.
This shop close to the plaza is a upscale shop with prices to match. However, they have designer alpaca goods, in other words, not just the normal knitted good you normally see. Worth a look. They have men and women's clothes.
After looking around at souvenirs a fair bit we went into this shop on the passageway behind the Cathedral. The shop assistant was very friendly but not in an agresesive way. Alina ended up taking me out in the evening to how me Arequipa's nightlife. In return for her friendly hospitality I bought all my souvenirs at the shop she works at.
My friend Fiona wanted a blouse in a particular colour and Alina went out of her way to get one for Fiona. She called us at our hostal when she had it.
What to buy: We bought tops with hand woven designs, rugs (floor and wall), placemats, a belt, scarf, alpaca jersey.
What to pay: I knew that Alina was not ripping me off and so was comfortable purchasing here. I can't remember what we paid exactly but she did give a discount for larger purchases. The blouse my friend Fiona bought cost 40 Soles.
Fundo del Fierro: is a colonial couyard made of sillar de volcanic stone . It has a special atmosphere. Specially during the month of august , there is an artesanal fair from all the regios from Peru there.
El patio del Ekeko, is a shop where silver ware and fine alpaca and vicuna quality can be bought. Other goods like peruvian bombos and a cafe is also to find there.
What to buy: Arequipa is the best place to buy, Silver, beautiful jewerly with andean stones ans also with spondillus, the prices are between 10 dollars to up. Around plaza SanFrancisco there is a place called Fundo del Fierro inside there are many shops where you can buy silver (handmade designs).
Alpaca wol, is the treasure of the Andes, you can buy best quality alpaca in Arequipa, in shops like El patio del Ekeko in Mercaderes Street, Alpaca 111 is the best mark.
What to pay: Silver: from 10 USD to up, depending what are you buying
If you all of a sudden decide to do a hike and realize that you don't have sweats, or hiking pants, or boots, or rain gear or decide to want to go dancing and didn't bring a sexy/cool outfit then go to "el avelino" or closer to El centro "Siglo XX". There you will find vendor after vendor selling everything from shoes to food stuff.
To get to "el Avelino" go during the day and ask a secure taxi to take you there (this place is located near the bus terminal). It's not dangerous just be careful of pickpockets. Or better yet, hit Siglo XX. This is across the street from where the old jail used to be that is just like "el avelino" and it's called "Siglo XX" [veinte]. You can walk here. Ask your hotel staff to give you directions. Or you can take a cab from el centro for about 3-4 soles.
What to buy: Anything and everything. They import most things tax free. You can buy booze, batteries, clothes, shoes, underwear, electronics, hats, food, etc., etc.,
What to pay: All in soles, do not bring dollars. Also, you can haggle some but if you think it is already cheap then don't haggle any more. Remember that the vendors don't make that much money so be fair.
What to buy:
If the traditional embroidery with swirls and plant motives strikes your fancy, buy it here in Arequipa. In other places in Peru you will get a tiny selection and expensive prices. In my opinion it is more elegant and less kitchy than many other "typical" Peruvian motifs. Especially the designs on a black background.
You can find bags, wrist cuffs, cushion covers, belts and much more, all covered in this type of embroidery, in every tourist store in Arequipa.
La Iberica is a chocolate factory situated here. The chocolate mass is darked than we have used to in Europe, but more tasty, because they have used more cacao beans, I think.
In the heart of the city center and many other locations, you can enjoy the choco filled with Pisco, a liquor from peru
What to buy: types of chocolate
What to pay: 20 dollars as much