Ask almost any Melbournian to help you plan your time in the city, and he or she will advise you to shop until you drop. All Australia regards Melbourne as a shopping capital -- it has everything from fashion houses to major department stores and unusual souvenir shops. So even if you're also visiting Sydney, save your money until you get to Melbourne, and then indulge!
Start at the magnificent city arcades, such as the Block Arcade (between Collins and Little Collins sts.), which has more than 30 shops, including the historic Hopetoun Tearooms, and the Royal Arcade (stretching from Little Collins St. to the Bourke St. Mall). Then hit the courts and lanes around Swanston Street and the huge Melbourne Central shopping complex between Latrobe and Lonsdale streets.
Next, fan out across the city, taking in Chapel Street in South Yarra, for its Australian fashions, and The Jam Factory, 500 Chapel St., South Yarra (tel. 03/9860 8500), which is a series of buildings with a range of shops and food outlets, including a large branch of Borders bookshop, as well as 16 cinema screens. Get there on tram no. 8 or 72 from Swanston Street.
There's also Toorak Road in Toorak, for Gucci and other high-priced, high-fashion names; Bridge Road in Richmond, for budget fashions; Lygon Street in Carlton, for Italian fashion, footwear, and accessories; and Brunswick Street in Fitzroy, for a more alternative scene.
Serious shoppers might like to contact Shopping Spree Tours (tel. 03/9596 6600; www.shoppingspree.com.au), a company that takes you to exclusive and alternative shopping venues, manufacturers, and importers you wouldn't be likely to find by yourself. Tours depart Monday through Saturday (except public holidays) at 8:30am and cost A$74 (US$59/UK£30) for adults and A$35 (US$28/UK£14) for children under 12. They will pick you up at one of six hotel locations in the city center.
Crafts -- A good arts-and-crafts market is held on the Esplanade in St. Kilda on Sunday from 9am to 4pm. Take tram no. 16 from Swanston Street or no. 96 from Bourke Street.
Fashion -- High-fashion boutiques line the eastern stretch of Collins Street, between the Grand Hyatt and the Hotel Sofitel, and Chapel Street in South Yarra. In addition, thousands of retail shops and factory outlets are around the city, many of them on Bridge Road near Punt Road and Swan Street near Church Street in Richmond. You'll find designer clothes, many just last season's fashions, at a fraction of the original price.
In the city, the hottest new fashion center is the QV building, which takes up a whole block, bordered by Swanston, Russell, Lonsdale, and Little Lonsdale streets. Despite its size, it has a nice feel to it. This is where you will find top Australian and international designers, tucked into QV's laneways. The premium fashion alley is Albert Coates Lane, where you'll find the likes of Christensen Copenhagen, Cactus Jam, and Wayne Cooper.
Collins Street features most international labels as well as shoe heaven Miss Louise, 123 Collins St. (tel. 03/9654 7730). Nearby Flinders Lane has earned style status with the likes of Christine, 181 Flinders Lane (tel. 03/9654 2011), where women have been known to faint over the accessories. Down the road is Little Collins Street, another fashion-rat run. Look for local labels Bettina Liano (tel. 03/9654 1912), Scanlan & Theodore (tel. 03/9650 6195), and Verve (tel. 03/9639 5886). Alice Euphemia, 37 Swanston St. (tel. 03/9650 4300), also stocks upcoming Australian and New Zealand designers.