Palermo's street markets are the real draw. La Vucciria, Ballaro, and Mercato di Capo are chaotic, colourful, and full of fresh fish, produce, spices, and street food. Go before 10am for the full experience at Vucciria, though Ballaro keeps going through the afternoon.
For boutiques and higher-end shops, head to Via della Liberta in the north of the city or the pedestrianised Via Principe di Belmonte. Local crafts, ceramics, and Sicilian sweets make good souvenirs. The markets are also good for picking up spice packets and local olive oil to take home.