If you want to buy authentic Icelandic Wool Sweaters this is where to go!

The Handknitting Association of Iceland is a group of mostly women that have been producing handknitted goods since 1977. They specialise in crafting items such as sweaters, pullovers, cardigans and blankets from the unique wool of Icelandic sheep. All products are handmade by members of the association using traditional knitting techniques.

Be sure to ask the staff about the VAT refund, especially if you're spending quite a bit of money here.