There's no lack of souvenir stands, T-shirt outlets, and overpriced hotel gift shops here, but good shopping options are limited. There are several outdoor arts and crafts markets around Varadero; the best, Artesanía, is at Avenida 1 and Calle 12. The Plaza de los Artesanos at Avenida 1 between Calles 46 and 48 is also good. ARTex has stores at each of these sites, as well as at Avenida 1 and Calle 35. At each, you will find a broad (and standard) collection of trinkets, T-shirts, musical instruments, posters, and CDs.
Taller de Cerámica Artística, Avenida 1 between Calles 59 and 60 (tel. 45/66-7554), is a working pottery studio and factory with a broad selection of finished goods for sale. Some are quite good and quite expensive. The work ranges from abstract and artistic to purely functional. You can usually watch a potter at work while shopping.
For a dense collection and variety of shops, Plaza las Américas, Autopista Sur Km 11 (tel. 45/66-8181) has a modern mini-mall and convention center with clothing boutiques and T-shirt shops, along with an art gallery and a music shop thrown in. There's even a small supermarket here, and several restaurants.
If you want cigars, the best-stocked shop in Varadero is Casa de los Tabacos, Avenida 1 and Calle 38 (tel. 45/61-4719). They usually have one or two rollers making fresh stogies here, and there's a comfortable bar for enjoying their wares, while sipping a glass of rum or a strong espresso.