Therapy over on Valencia Street has a great selection of cute bags and clothes. Also, some pretty cute jewelery and little gifty things. Some of the stuff is expensive, however, make sure and check the clearance rack for t-shirts and skirts. They have a lot of Paul Frank which I don't personally care for, though some of the slippers and undies are cute. The staff is nice and the bonus is they have a housewares store right next door. Cute retro-furniture, very pricey. Look around though for home accessories (ie. glasses, etc.), sometimes incredible deals can be found.
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