Ulaanbaatar department stores near downtown offer many curios, antiques, artwork and fine winter clothing. Good leather jackets, cashmere sweaters, camel wool vests and blankets can be found at excellent prices. Traditional embroidered boots with upturned toes, dels tied with silk scarves, fox fur hats and stylish Mongol jackets called 'hitunim' are mostly homemade but can be found in some shops.

Supermarkets (or at least the Mongolian type) usually have stock foods like rice, western and local noodles, bread, sugar, flour. The stores in large cities like Ulaanbaatar are rather well stocked, you can get almost everything - if you search hard enough. In smaller towns the situation is very variable. If you happen to be in town when there is market, your chances of finding what you need are pretty good. On the markets you can even get vegetables (especially cabbage and tomatoes), different kinds of breads, and fresh meat in addition to stock foods.
(Source from:
http://www.mountainbike-expedition-team.de/Mongolia/mongo_info.html)
Typical Mongolian souvenirs, garments, quality cashmere, camel wool, national costumes, boots, jewelry, silver works, paintings on papers / canvas, Buddhist Tankas on silk, handmade carpets and rugs, snuff bottles, embroideries, leather clothes, books, maps and records are all available at reasonable prices. The State Department Store is the main shop from food to the above items. There are also many smaller shops and local markets as well as art and souvenir shops. Tourist shops are easy to find in the summer months, and one should make an effort to look beyond the pricey gifts shops at the main hotels. The following are worth visiting; note that some are not named, and are only known as 'art shop' or 'souvenir shop'. If you want to see some stores` address, click here.
Mongol-style paintings, books on Mongolian art, and traditional musical instruments make excellent gifts. Antique shops offer a good range of old kettles, silver bowls, knives and Buddhist artwork. As a word of warning, official opening and closing times in government offices, shops and museums are not held in high regard. Be prepared to alter your schedule and improvise.
At the Ulaanbaatar Central Market, towards the back, is a section reserved for antiques and coin sellers (this is the best reason to visit the market). It is, however, illegal to take antiques out of the country unless purchased from an authorized shop (customs agents will ask for a receipt). Some curios at the market are new, including snuff bottles and the famous Mongolian wood saddle. There are many sticky fingers about so leave your valuables in the hotel.
There are plenty of great places for shopping in Ulaanbaatar. For tourists seeking souvenirs there are many places that sell traditional Mongolian and Kazakh handicrafts and souvenirs. A popular destination for shoppers is the Narantuul market, also called the “Black Market”. This huge open-air market has vendors of all types and usually the best prices can be found here. Cashmere is another popular buy for tourists because of the low prices that can be found in Mongolia. There is no shortage of Cashmere shops in the city center. The large State Department Store in the center of Ulaanbaatar city is also a popular destination for shoppers because of its large selection of western food and international products. It offers a large selection of food, clothing, electronics, appliances and also a great souvenir display.