It's the Mercado Artesanal La Mariscal, which translates to La Mariscal Artisan Market. There are several dozen little booths filled with items that might prove to be interesting to tourists. Need a t-shirt? They have plenty, and most are only $5 each. Other goods are available as well at various prices, but don't worry too much about the cost. Chances are good that the number will go down if you try to negotiate a bit, especially on the "higher priced" stuff. In fact, sometimes you don't have to negotiate - lower prices are sometimes "volunteered" in an attempt to reach a price point.
The regular dealers are inside the building. There are a few that work the streets outside, to take advantage of the tourist population without paying the overhead of a booth. There's a little pressure from the workers to buy as you stroll, even if you have already bought an item or two. But a simple "No, gracias" works pretty well, and there's a certain charm to the place.
The photo is of a "totem pole" right in the middle of the store. You don't see that in Macy's.
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