I can comfortably tell you about shopping in Tel Aviv because I have explored it more like a local than as a tourist. In Jerusalem I feel like a tourist and am very wary of purchasing souvenirs there. I blend in very easily with the tourist crowd in Jerusalem and my confident Kama Ze (How much for that?) hardly helps me break that tourist image.
In Tel Aviv, I go to stores where I know the shop keepers or to places that also attract locals.
Handmade Souvenirs
If you are in Tel Aviv on a Friday or Tuesday, do not miss the Nahalat Binyamina Art Fair. It a street market where independent jewellery designers, handicraft artists, and other artists set up shops twice a week. Some of the art and jewellery sold here is very expensive. There are some designers who sell magnets, little trinkets and other souvenirs even for the budget conscious traveler. It is not at all hard to find magnets for 10 NIS, handmade hamsa trinkets for 30 NIS and framed photos for around 40-50 NIS. I love shopping at Nahalat Binyamina for the off-beat products I get here.
Head to small souvenir shops around Jaffa or shops on Allenby Street to pick up menorahs or ceramic ware typical to Israel. I avoid shopping at Shuk HaCarmel because I have no bargaining skills to speak of and the Shuk is a place where I think bargaining is the only way to settle on a good price.
Spices, Teas and Nuts
You will feel tempted to shop at the street side pop up stores in Shuk HaCarmel, fight it. I had a bad experience with chilli flakes I bought at the Shuk. Fungus grew in the chill flakes! I had never heard of this happening to any one, ever. So I don’t shop at the Shuk.
I instead go to brick and mortar stores in the Levinsky Market or brick and mortar stores that are off the Shuk HaCarmel street but in the main market area. I try to go into stores that are protected from the elements. I was horrified when I saw a cat crawl out from behind a peanut sack in an open brick and mortar store in the Shuk area.
Clothes and Shoes
When I asked an Israeli to suggest the most affordable stores to purchase clothes and shoes, he was amused that I thought of Tel Aviv as a shopping destination. “But, why?” he said, followed by, “I buy my shoes and clothes for cheap from the US.” I learnt my lesson.
You could try out the bargain stores on King George near the Allenby and King George intersection for cheap and export reject kind of apparel for 30 NIS onwards. I am not a great fan of those stores though.