Judging by the number of times our tour guide gave us shopping time, people visiting Israel love to shop. The trick, for me, was discovering the jewels hidden among the schlock-shops geared for tourists. I made this my mission for every touristy shopping stop -- find the design-forward, innovative shops and items and the authentic Israeli experience. I'm sure I only scratched the surface.
The Jerusalem Shuk (shuk means market) is the largest and busiest outdoor market in Israel. There is wonderful people watching and gorgeous fresh produce, nuts, and spices. Two cuisine experiences I recommend are sampling the rugelach and other wonderful pastries sold at many booths and trying one of the unique freshly squeezed and concocted juices. Harry, of Jerusalemite, a hip guide to Jerusalem, told me there is even a juice bar where one can get khat, catha edulis, which is a amphetamine-like stimulant, added to ones juice. Chewing khat leaves is an ancient Yemenite tradition. (I'm not sure if it is legal...)
Design-wise I found two golden nuggets in the Jerusalem Shuk, tucked away off side allies off the main drags of the shuk:
30 Walnut (is the name and the address) - a clothing and accessories store selling Riva, Neta Sade, and a designer Adamverivi, which makes wallets, key rings, and handbags out of laminated and stitched papers.
Bordeaux (6 HaTut, 6 Tut Street) - a clothing store with gorgeous serious clothing and cute t-shirts with cheeky sayings in Hebrew. The t-shirt above says something like, "What can I get you daddy?," a colloquial shouted out in the shuk to solicit business. I thought it perfect for me, being a shopkeeper and all!