An often ask question in any city, and one most difficult to answer in my opinion. The choices are endless, and taste varied wildly. However, I will give my choices, hope they help you enjoy your shopping pleasures in Madrid, and maybe exchange some new ones from you.
Madrid is a very compact city, most of the stores are located in the Centro or city center area,and for more upscale by the Salamanca district between Castellana and Principe de Vergara, and from calle de Alcalà to Calle Maria de Molina. The stores open from 10h to 21h with some open continuosly and others closing from 14h30 to 17h30 everyday, most however close on Sundays. You will see the hours are not all fix nor care for although they have improved over the years lol! The fashion trend has hit Madrid since Movida days and it continous today with many fashion designers popping up with passarelas a la Paris or Milan.
Let me give my favorites over the years in my beloved Madrid!
You have the typical chains like FNAC Spain, with the perennial main store at plaza Callao and metro Callao lines 3, 5. Lately at Calle Preciados near Sol. https://www.fnac.es/Fnac-Callao/Fnac-Callao/cl2/w-4
El Corte Inglés or the English cut, a chain store all over Spain,started in Madrid many years ago, and now the emblematic dept store of the city, my favorite is at Paseo de la Castellana,near Nuevos Ministerios where you get off from the airport at Barajas and arrive in the city go out turn right and the store is on your right hand side cant missed it. There is another perennial store by calle Preciados next to the Puerta del Sol. https://www.centroscomerciales.elcorteingles.es/centroscomerciales/es/eci/centros/centro-comercial-castellana
Museo del Jamon or ham museum, for that classical jabugo ham of bellota or wild nuts, several in town but the best selections are in Gran via. These are also restaurants. webpage https://museodeljamon.es/historia-del-museo/museo-de-gran-via-72-2/
Casa Mira, for those wonderful Spanish pastries including nougat or turron. Located at Carrera de San Jéronimo, 30 , metro Sevilla line 2. Open every day from 10h-14h and 17h-21h, Sundays 10h30-14h30 and 17h30-21h. https://www.casamira.es/la-tienda/
Mariano Madrueño, the best Spanish wines you can find in Madrid, all prices even from 2€! even liquors. Calle Postigo de San Martin, 3, Metro Callao lines 3,5. https://marianomadrueno.es/
Bodegas Santa Cecilia for wines, I had my personal well wishes always at Santa Cecelia better, find the other a bit too commercial, so Santa Cecilia stays for me. You go to store at calle Bravo Murillo,50 metro Rio Rosas line1 or Cuatro Caminos lines 1,2,6. Open Monday from 17h-20h30. Tuesdays to Saturdays from 10h-14h and 17h-20h30. https://www.santacecilia.es/santa-cecilia/tiendas-de-vino-madrid
El Flamenco Vive or the flamenco lives, a store for lovers of Flamenco and who is not? wonderful choices to buy everything related to this wonderful art of Spain. Calle Conde de Lemos,7, Metro Opera lines 2,5. https://www.elflamencovive.com/
El Arco Artesania, in the Plaza Mayor, several Spanish artists to sell you authentic jewerly, vases, ceramics,lamps,engraving etc; located at Plaza Mayor 9, Metro Sol lines 1,2,3.and Cercanias trains. https://www.artesaniaelarco.com/contacto
Casa Hernanz, the best Spanish espadriles sandals (alpargatas) over 150 yrs doing it; located at Calle de Toledo,18. Metro Sol lines 1,2,3. Open monday to fridays from 9h-13h30 and 16h30-20h, Saturday 10h-14h. https://casahernanz.es/en/inicioen/
The best public market or flea market is El Rastro, there for years and years around Plaza Cascorro and the Calle Ribera de Curtidores, this is a tradition every Sunday morning until 15h-16h, best way there is metro La Latina line 5, Puerta de Toledo line 5, or just descend from Plaza Mayor. https://www.elrastro.org/
Another popular flea or market I like to go is the one by Anton Martin, this one is every day from 9h-14h except saturdays afternoons and Sundays. It is a covered market of food,fruits,vegetables and very typical Spanish , calle Santa Isabel,5, metro Anton Martin line 1. https://www.mercadoantonmartin.com/
Another typical market even if best to have there, but you can take home too especially nowdays is the Mercado de San Miguel, located at the Plaza San Miguel ,going to it from the southwest side of the Plaza Mayor, metro Sol lines 1,2,3. https://mercadodesanmiguel.es/
Another one of my favorites in Madrid is the Mercado de San Idelfonso in the Calle Fuencarral, open everyday from 1àh-22h, in barrio Chueca, all types of clothing ,shoes,artistic creation all around a metal stairs; here you can continue your shopping around small boutiques of the Calle de la Hortaleza,Pelayo,and plaza de Chueca. metro Chueca line 5, and Tribunal lines 1,10. https://www.mercadodesanildefonso.com/
Calzados Victor, Calle Alcala, 278, shoes for the whole family at great prices, a family place, I was bought my first Spanish shoes here at 10, then my kids,and wife, a tradition for us since 1971 when I was living in Madrid,and still to this day. Metro Carmen line 5. Open 10h-13h30 and 17h-20h30. No webpage but perennial shoes store in the off the beaten path district of Madrid. Great bargains and family service.
Cortefiel , mens clothing at its best, the best location is calle Serrano. Other locations in Madrid. Also in France. https://cortefiel.com/fr/en/stores
Zara, the leading Spanish ready to wear chain, also in France, in Madrid it was just a few meters from my piso or apt at Calle Alcala, 365 metro Pueblo Nuevo line 5. The best for woman really, classy look, my mom favorite. https://www.zara.com/ic/es/z-tiendas-st1404.html?v1=11108
Antigua Casa Talavera, its a wonderful place for the lovers of ceramics from all periods of Spanish history. They come from all corners of Spain from the best masters. located at Calle de Isabel La Catolica 2, metro Santo Domingo line 2. Open every day except Saturdays afternoons, Sundays ,and holidays, from 10h-13h30 and 17h-20h. http://www.antiguacasatalavera.com/
Calzado Los Guerrilleros, a shoe store for all the family there over 50 years. Now closed but by the early 1970’s, it was my mom favorite too, and then we came in too. It had a funny commercial “dont buy here its too expensive” !! The main store was at Puerta del Sol . metro Sol lines 1,2,3. Here just for the memories of wonderful Madrid of old
La Favorita, for hats, even my grandfather purchase here, that’s old, and still here. Plaza Mayor, 25, metro Sol lines 1,2,3. Hats and caps of all sorts. A traditional place you will come back for it. https://www.lafavoritacb.com/contacto
Casa Yustas, Plaza Mayor 30 , metro Sol lines 1,2,3, a tradition of Spanish souvenirs (regalos), hats( sombreria) and armory( efectos militares) going back to grandparents in Madrid. My boys got to buy here too! https://www.casayustas.com/
Objetos de Arte Toledano, Paseo del Prado, 10-12, right front of museum of Prado, metro Banco de España line 2 or Anton Martin line 1. All about the universe of swords, medals and medieval military artifacts, souvenirs , best of Spain. This is another that say adios, sadly it was a nice place shop. Here just for the memories of my wonderful Madrid!
Alvarez, for sporting equipement of all sorts, see them ,the best always. you wont be disappointed, they can advise on site. You can buy online or go to stores, the one I frequented is at Calle Capitan Haya, 6, (now the street is call (Calle del Poeta Joan Maragall nº60) about 100 meters from hotel Melia Castilla,metro between plaza Castilla lines 1,9,10 and Cuzco line 10. Mondays to saturday continuosly from 10h to 21h. https://www.a-alvarez.com/
For groceries there are several good ones such Hipercor,(part of group El Corte Inglés see above); but I prefer the chain Sanchez Romero my family have enjoyed over the years, and I stock up when in Madrid. Great service and they take your swipe cards too,ask. The one I go is at Paseo de la Castellana,196; metro Plaza de Castilla lines 1,9,10 or Cuzco line 10. From Cuzco stay on the right hand side of Castellana and from Plaza de Castilla cross over to your left side and walk down. Other stores too,and cafeterias, also one at Castellana location, great prices. https://www.sanchez-romero.com/
Chocolat Factory, calle general Peron, 40, metro Santiago Bernabeu line 10, the best chocolats in Madrid, even if Valor is a national chain, the chocoholics here will be in heavens. open monday thru Saturdays 10h-21h inside the Moda shopping center lower o 0 level. https://modashopping.com/nuestras-tiendas
Real Madrid main store, of course, my team, the best ever !!! Calle Carmen, 3, metro Sol lines 1,2,3.or the one at the stadium but believe the one at Carmen is more lively more for customers, the other one is more for diehard fans really ::) https://www.realmadrid.com/en/santiago-bernabeu-stadium/stores/el-carmen-store?pid=1390165211192
Then you have the shopping centers, great to go for a nice shopping spree in any weather,and see the world go by. And if pressed for time in the city they are superbe. My favorites in no particular order are
La Vaguada,avenida Monforte de Lemos,30, metro Barrio del Pilar line 9 or Herrera Oria line 9 ,closest is first one. wonderful shopping center with all you need in one stop shopping plus great movies. https://enlavaguada.com/en/
Plaza Arturo Soria, calle Arturo Soria 126-128, metro best by bus from Plaza de Castilla No 70 or from intercambiador Ave de America bus Nos 122,322. https://www.arturosoriaplaza.es/index.aspx
Plaza Norte 2,Parque Comercial MegaPark, San Sebastian de los Reyes, just north of city limits of Madrid, great huge shopping center, great values and local ambiance, you can get there from plaza de Castilla on bus number 156 or 171. All major stores are there from El Corte Ingles to Haagen Dazs, you will love the mall!!! https://www.plazanorte2.com/
Shopping Center Parque Corredor, another of my favorites outside the city but easy to get there, this one is next to Torrejon de Ardoz, if you want a family shopping experience and see the local way of life then come here. We did it for Toys R Us and Burger King lol!!! kids rule! .The place is lovely setup and great shopping at Al Campo (Auchan in France) You go there from intercambiado Avenida de America, and take bus No 251/252, to Torrejon de Ardoz, cross street to take bus No 4 to Parque Corredor. https://parque-corredor.com/
Las Rozas Village, a shopping outlet type mall, on the outskirst of the city, that is popular with several expats I know, its in the town of Las Rozas, similar to the outlet mall in Disneyland Paris, so major brands catch the good prices and take a leisure ride into other Madrid, for the curious. From Intercambiador of Moncloa (calle Princesa 96) metro Moncloa lines 3,6 or from metro Sol, to Moncloa and take buses No 629 to Village. https://www.tbvsc.com/las-rozas-village/en
See above, Moda Shopping at calle General Peron, 38-40,metro Santiago Bernabeu line 10 just near paseo de la Castellana 95 and Santiago Bernabeu Stadium (Real Madrid FC), and right around Torre Picasso skyrise building. Some upscale shops and pubs, in a very busy section of modern Madrid, away from the tourist crowds and shop in a nice ambiance. https://modashopping.com/
ABC Serrano, Calle Serrano,61 metro Ruben Dario line 5 exit paseo de la Castellana,or metro Nunez de Balboa, line 9 or Serrano line 4. upscale oasis in Madrid chic district, very elegant stores, eateries for a nice indoors city break. https://www.abcserrano.com/
This is it for me. Hope it makes your shopping pleasure in Madrid a bit better. Of course, its not an exhaustive list nor inclusive of all, but it gives you a good start. If you need specifics I am always around my blog.
And remember, happy travels, good health, and many cheers to all!!!