Shopping

According to legendary medieval Lord Mayor, Dick Whittington (and his trusty cat), "the streets of London are paved with gold." Nowadays, those same streets are paved with row upon row of shops, all waiting for you to part with some of your gold.

London's shopping scene is eccentric, an eclectic mix of the thrifty and the luxurious. Shopping here isn't just about the big department stores, the impressive labels, or the obvious high-street chains anymore: It's going local, it's going boutique, and it's getting more personalized, as London develops an affordable charm of its own. The shopping scene today is all about being original, whether you're buying unique glassware on Portobello Road or haunting the vintage boutiques of the East End. It's about making your shopping personal to you, and buying something that you'll treasure forever. And of course, it's about collecting lots of "where did you get that?" compliments when you get home. The chances are that you picked it up from a little-known pop-up shop that disappeared a week later. They're all over London at the moment -- it's one trend that seems to be sticking around.

Londoners are still spending, but are thinking more about where and to whom their money goes, and smaller shops are doing well as a result. The friendly service, personal touches, and unique items are all part of the city's contemporary shopping experience. This once-hidden personality of London's shops has always been there, but now it's much easier to find. The searching can be the best bit, because that's when you stumble upon what's truly memorable.

So although the larger shops will always tempt, don't forget about those little gems. These are the places you'll remember -- and they're what make shopping in London as special as everyone says.

Hours -- London keeps fairly uniform store hours. The norm is 10am opening and 6pm closing Monday to Saturday, with a late Thursday night until 7 or 8pm. Most of the more central stores stay open until 7pm every day. However, the upscale stores along Bond Street usually shut earlier -- around 6pm.

On a Sunday, shops in England are allowed to trade for 6 hours; usually they choose 11am to 5pm, or noon to 6pm. You will also find that some shops open earlier for browsing only, thus extending their opening hours without breaking the law. Stores in designated tourist areas and flea markets are exempt from this law and may stay open all day on Sunday. Therefore, Covent Garden, Greenwich, and Marylebone are all big Sunday destinations for shoppers.

Taxes & Shipping -- Value-added tax (VAT) is Britain's sales tax, and is currently at its highest ever rate, a whopping 20% on most goods. It must be included in any quoted consumer price, so the number you see on the price tag is exactly what you'll pay at the register. Non-E.U. residents can claim back much of the tax by applying for a VAT refund. In Britain, the minimum expenditure to qualify for a refund is £50. Not every single store honors this minimum, but it's far easier to qualify for a tax refund in Britain than some other countries in the European Union.

Vendors at flea markets may not be equipped to provide the paperwork for a refund, so if you're contemplating a major purchase and are counting on one, ask before you buy. Be suspicious of any dealer who tells you there's no VAT on antiques. This was once true, but things have changed -- and pricing should reflect this. Negotiate a price you're comfortable with first, and then ask for the VAT refund.

VAT is not charged on goods shipped directly out of the country. Many London shops will help you beat the VAT by shipping for you. But watch out: shipping may be even more expensive than the VAT, and you might also have to pay import duties if you're shipping your stuff to North America.

You can ship your purchases on your flight home by paying for excess baggage (rates vary by airline), or have your packages shipped independently, which is generally less expensive than shipping it through the airlines. However, you can avoid the VAT upfront only if you have the store ship directly for you. If you ship via excess baggage or an independent shipping company, you still have to pay the VAT and apply for your refund.

How to Get Your VAT Refund -- Residents of countries outside the European Union are entitled to claim VAT back on major purchases. However, you must get your VAT refund form from the retailer. You can't get this form from the airport, so don't leave the store without it. It must be completed by the retailer at the time of purchase. After you've asked whether the store does VAT refunds and determined their minimum, request the paperwork.

Fill out your form and then present it -- with the goods, receipts, and passports -- at the Customs office in the airport. You should allow an hour to stand in line, and do remember that you're required to show the goods, and so put them in your carry-on luggage.

Once the paperwork has been stamped, you have a couple of options. You can mail the papers (remember to bring a stamp) and receive your money as a credit card refund; or you can go to the Cash VAT Refund desk at the airport and claim your refund in cash. If you accept cash other than sterling, you will lose money on the conversion. Many stores also charge a fee for processing your refund, so that will be deducted from the total you receive. But since the VAT in Britain is 20%, it's worth the trouble to get the money back for a major purchase.

Note: If you're heading to other countries in the European Union, you should file all of your VAT refunds together as you depart your final E.U. destination.

Duty-Free Airport Shopping -- Shopping at airports is big business. Heathrow is virtually a shopping mall these days, and designer shops are especially prevalent at Terminal 5. Prices at the airport for items such as souvenirs and confectionery are, of course, higher than on the streets of London, but duty-free prices on luxury goods are usually fair. Sales at these airport shops are made for those passing through Heathrow en route to other destinations -- usually home. Perfumes and aftershaves, as well as designer accessories, are where the best bargains are to be had.

Global Refund (www.globalrefund.com) is your best bet for getting VAT refunds at the airport. Shop where you see the Global Refund Tax-Free Shopping sign, and ask for a Global Refund Tax-Free check when you purchase your items.

Sales -- Traditional sale periods have changed in the face of local and global recession, and these days you can find a bargain during most months. It's rare that you can walk down a street without getting enticed by sale posters in a window. However, the January sale is still the big shopping event of the year. Boxing Day in England (December 26), following the Christmas shopping spree, marks the beginning of year-end clearance sales, which often run through January. On Boxing Day itself, many shops open early (some as early as 7am, although people start lining up much earlier). You'll also find that some stores try to cash in on bargain-hunting Christmas shoppers by starting their sales midway through December. The discounts usually increase again after Christmas, but if you want the good stock, get in early. Sharpen your elbows and get shopping.

There are also several designer sample sales that are worth looking out for. They're often advertised in the local press, but you can also find the best ones by signing up to email alerts from the London edition of Daily Candy (www.dailycandy.com). Expect long queues, and fashionistas fighting over the best pieces -- understandable given that most are discounted by 70%. Stock is replenished every day, but if you want the best stuff arrive at least an hour before opening. You should also expect to pay to get in, but this is rarely more than £5, and usually around the £2 mark, which tends to cover the costs for the venue and very busy staff. Make sure you keep an eye out for the massive costume and fancy dress sales from Angels, 119 Shaftesbury Ave., W1 (tel. 020/7836-5678; www.fancydress.com; Tube: Tottenham Court Rd.). They're rare, and you'll queue for hours; but if you're a fan of dressing up, it's one sale you do not want to miss. You'll find details of any sales in the London press, but if they have one coming up it'll be plastered all over the website too.