Although it might seem more "authentic" to buy your souvenirs at their source, you can find everything in the city, a real bonus if you're pressed for time. If the capital has any real tourist shopping district, it's found loosely in the cluster of streets around Parque Morazán, just north of downtown, an area bounded roughly by Avenidas 1 and 7 and Calles 5 and 9. Stroll and search, because many other businesses congregate in the area as well.
The northeastern suburb of Moravia has a cluster of high-quality crafts and artisan shops—for good reason very popular with tour groups—in the three blocks heading north from the Colegio María Inmaculada. The street is two blocks behind the city's church.