In Kittery more than 120 outlets  line a 1.3-mile strip of Rt. 1 surrounding the  Kittery Trading Post, a landmark since 1926 (vastly expanded in 2004), good for quality clothing, hunting, fishing and camping gear etc.  By contrast,  south of the I-95 exit 2 traffic circle are a half a dozen distinctive owner-operated shops --  Cacao Chocolates,  Beach Pea Baking Co. and Terra Cotta  Pasta Company are all worth a stop. 

York is home to Stonewall Kitchen ( www.stonewallkitchen.com) with endless exotic and tasty jam and jellies and  dozens of vinegars, chutneys, and barbecue sauces to sample in its flagship store, which also features kitchen ware and a café/deli .
 At Rocky Mountain Quilts in York Village Betsey Telford restores quilts and sells antique quilts (more than 450 in stock, “from doll to king”), blocks, and fabrics from the late 1700s to the 1940s. Quilters also head for Knight’s , which sells bright fabrics, quilt supplies, and small quilted gifts but no quilts). Woods to Goods  features ships’ models, and other decorative items made by inmates of Maine prisons.  
The most famous souvenirs from this stretch of coast remain Goldenrod Kisses. Don't leave York Beach without them. The Goldenrod,open memorial Day-Labor Day, is also a great spot for all three meals and homeade ice cream. It's been owned by the Talpy family since 1896.