Until the mid-20th century Gjirokastra was an important market town surrounded by vast feudal landholdings in the lush valley, so there was an important market for agricultural machinery as well as leather and wood for the artisans.
By the 1580s the town had more than 400 dwellings and in the 17th century Memi Pasha, the Ottoman governor, laid out a new commercial quarter with a mosque, on the present site, with all the roads ending up at the ‘neck’ of the bazaar. This first planned town centre was almost completely destroyed by fire and rebuilt in the 1750s. It was again rebuilt after another fire in 1912 when steel beams were first used to support the shop fronts.
Today the shops are selling souvenirs, or they are occupied by artisans knocking their stuff out or by bars and restaurants.