If you are staying in Lima, the odds are you will be in Miraflores. Good shopping is in walking distance. If you are coming by cruise ship and not taking one of the tours, have a taxi take you to Miraflores (price about $20 USD).
Skip the shops by the Marriott, pass up the ones on the main drag, by the park. There is a little section of town that has a bunch of little stalls and can save you as much as 75% from the shops on the main drag.
Prices are negotiable. While American dollars & euros are accepted this is one place you want Sols in your pocket.
Since street addresses are almost worthless to tourists walking about in a strange city, I’ll give you directions by landmarks. In the heart of town there is a big park. Find the Burger King facing it. With your back to Burger King, go to your right. You will see a big circle (run-about), turn right. Go a couple of blocks, and you will see a couple of larger Handcraft shops across the street. Cross the street, but skip the shops facing the street, about a block behind them is where you will find the deals. These buildings rent stalls to venders, as a rule the further back you go in the building, the better the deals.
What To Buy: Here you can pick up leather items, pottery, silver, gold, blankets, t-shirts, dolls…. you name it, they have it.
What To Pay: I was able to buy a leather purse for 20, small blanket for 12, ceramic vases for 10 each, a very large hand embroideried wall hanging for 120, leather covered photo books for 10. This is in local currency not dollars! As a general rule real prices are 25 to 30 percent less than marked.
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Theme: Local Craft