Yes, we know it's a long way from its peers in the fashion world, but Europe's northernmost city is a funky, lively destination and its fashion offerings are no exception. On Laugavegur, the city's main shopping street, you'll find a host of clothing boutiques, plus an assortment of shops offering accessories, leather goods, cosmetics, lingerie, books and music. Skólavörôustígur is the city's most chic shopping street, with more exclusive boutiques, gourmet stores, fur shops, jewelry shops and art galleries. You'll find some expected fashion names here but most notable are the local designers, who offer Iceland's own unique brand of style. Be warned: Iceland is one of Europe's most expensive countries, and while a tax refund for tourists and a relatively low overhead offset some of the markups for retailers, you'll probably have to pony up quite a bit for fine fashion. Still, if you buy an outfit from one of Reykjavík's local fashion houses you can rest assured that no one at your next party will show up sporting the same look.

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