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The stores are located at the Inn and on the Beach.

You have a choice of Talehma's (magic shoppe), Ivy's (Weapons and Armour shoppe) and Aya's Gifts and Giggles (General Goods and Dye Vendor and a good place to stock up on food so you'll be prepared for combat).
To enter a store click on the NPC (non player character) Krabbit and you will be transported to their shoppe.

From there see buying and selling
Picture of inside Aya's shoppe