Puno [1] has three old buildings that have been renovated into small shopping centers with cafés. Casa del Corregidor, which houses The Fair Trade Shop (Deustúa 576, tel. 051/36-5603, www.casadelcorregidor.ciap.org [2], 8 a.m.–11 p.m. daily) is near the plaza; Casona Parodi (Lima 394, 9 a.m.–10 p.m. daily) is on the main drag; and Casa de Wiracocha (Tarapacá 260, tel. 051/36-3542, 10 a.m.–10 p.m. daily) is tucked away on a side street.
Puno [1] is a good place to buy alpaca wool clothing and weavings. Good spots include the Casa del Artesano (10 a.m.–10 p.m. daily) at Lima 549 and the Arts & Crafts Center (10 a.m.–10 p.m. daily) across the street, on the pedestrian mall near the main square, and the market on the railway between Los Incas and Lampa [3].
The highest quality is found at Alpaka’s (Lima 394, tel. 051/36-3551, 9 a.m.–noon and 4–10 p.m. Mon.–Sat., 4–8 p.m. Sun.), in Casona Parodi, and at the expensive Alpaca 111 (Lima 343, www.alpaca111.com [4], 10 a.m.–10 p.m. daily), which both sell nice sweaters, scarves, and shawls.
Links:
[1] http://www.moon.com/destinations/peru/lake-titicaca-and-canyon-country/puno
[2] http://www.casadelcorregidor.ciap.org
[3] http://www.moon.com/destinations/peru/lake-titicaca-and-canyon-country/between-puno-and-cusco/lampa
[4] http://www.alpaca111.com