Corfu town has so many shops selling jewelry, leather goods, olive wood objects, and handmade needlework that it is impossible to single out one or another. If you're looking for needlework, the stores along Filarmonikis (off N. Teotoki) may have something that pleases you; prices are generally fair and uniform.
I would never recommend a trip to Corfu just for the kumquat liqueur, but this Chinese fruit has been cultivated on the island since the late 1800s, and the liqueur makes a unique treat -- or gift, if it doesn't appeal to you!
Standing out from the many souvenir-gift shops is Antica, 25 Ayios Spiridon, leading away from the north end of Liston (tel. 26610/32-401), offers unusual older jewelry, plates, textiles, brass, and icons. Gravures, 64 Ev. Voulgareos, where the street emerges from the old town to join the new town (tel. 26610/41-721), has a fine selection of engravings and prints of scenes from Corfu, all nicely matted. Originals (taken from old books or magazines) can cost 150€, reproductions as little as 10€. And for something special, visit the Patounis Soap-Making Factory on I. Theotaki (tel. 26610/39-860) and try some of their olive oil soap.
There's no dearth of ceramics in Corfu, but I favor the Pottery Workshop, 15km (10 miles) north of Corfu on the right of the road to Paleokastritsa (tel. 26610/90-704), where you get to observe Sofoklis Ikonomides and Sissy Moskidou making and decorating all the pottery on sale here. Two kilometers (1 1/4 miles) farther along the road, on the left, is the Wood's Nest, offering a large selection of olive wood objects just slightly cheaper than in town
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.