The main street is filled with shops hawking souvenirs and gifts, some of dubious origin. However, for the best and most authentic handicrafts, head for Trachtenstube, Hauptgasse 23 (tel. 071/787-16-06). On the second floor of this outlet you'll find a wide array of traditional Appenzeller clothing, along with farmers' floral work shirts and hand-embroidered handkerchiefs. A wide selection of lace, embroidery, and crafts are sold here as well. Even the locals come here to shop for costumes during festivals.
Another outlet on the main street, Margreiter, Hauptgasse 29 (tel. 071/787-33-13), offers machine-made work produced in neighboring factories that's often quite stunning. Embroideries decorated with edelweiss or other alpine flora seem to be the fastest-moving items.