While Israel is generally considered a Western country in the Middle East, Jerusalem can actually be as Middle Eastern or as Western as you wish it to be. Locals tend to rely on today's universal shopping options – supermarkets and malls – but you do not need to look far to get to something more exotic, or even traditional. The city still has a good number of small businesses, including cobblers and tailors; family-run grocery stores are a mainstay of the Israeli lifestyle.
Many stores in West Jerusalem are open daily from around 9:00 (neighborhood grocery stores much earlier) to around 19:00 or later. All stores close on Friday by about 14:00, and all but a few kiosks, some restaurants – and the duty pharmacy – are closed on Saturday and most holidays.
In East Jerusalem, the stores are open daily, but some close on Friday (some just for the noon prayer).
Supermarkets are not difficult to find in the city of Jerusalem, and you may find almost everything for daily life. There are three big and cheap supermarkets in Giv’at Shaul area: “Supersal Deal” and “Rami Levy” at Kanfei Nesharim St., and another “Rami Levy” at Beit Ha-Dfus St. There is a “Shufersal” at Nayot, very close to Givat Ram, not as cheap as the previous options. There is a “Corp Shop” supermarket out of the student village in Mt. Scopus.
The Mahane Yehuda market (“Shuk”) in Jerusalem is an important place for both local residents and tourists. It can be reached by many bus lines and the tram. For detailed shop info and street information of the market, along with the tours, check the following web page: http://www.machne.co.il/en/
Malha and Talpiyot are the two main shopping malls in Jerusalem, where most of the local residents go. You may find clothes stores, kitchen wares, electronics, etc. In the city center there are also many small stores selling different things. The “Max” stores at the Central Bus Station and Ha-Davidka sell cheap house wares. Generally, it is not necessary to bring kitchen ware from abroad unless you have special preference.
The Arab souk (covered market) of the Old City extends through over three kilometers (two miles) of lanes and alleys, with rugs, antique (and so-called antique) silver, brass and copper wares, hand-blown Hebron glass, coins, ceramics, and endless trinkets on offer.
A contemporary counterpoint to the souk can be found in the Cardo. The main thoroughfare of Byzantine Jerusalem is today a modern shopping avenue, extending from the Jewish Quarter to the souk. The Jewish Quarter is also home to many little galleries tucked away in the alleys.
The Armenian Quarter specializes in hand-painted ceramics that recall days of yore and the unique flavor of the Middle East.
The Muslim Quarter, closer to Damascus Gate, has many stores of house wares, besides spices and groceries being sold by Bedouins.