In the far eastern part of the west part of Reykjavík, the 'Vesturbær', on the corner of Ásvallagata and Blómvallagata, stands a little grocery store called Kjötborg. I myself grew up in the neighbourhood and have for a long time been a regular customer. The two brothers who run it have become sort of legends in their lifetime, as the store is one of the last bastions of small grocery stores in the city. They offer a warm and friendly personalized service, and the store has really become a kind of a community and social center of its own. For a small shop, it's also amazing to see all the different products that they offer. If they don't have it, they're sure to order it. If one cannot enter the store, the brothers offer to bring the products to one's home.
A great documentary was made about the store and its community, simply called Kjötborg. It has gotten excellent reviews, was chosen as the best film at the Patreksfjörður documentary festival in the Westfjords and recieved the yearly Edda award for best documentary. It really is a sweet and feel-good film, so I can definitely recommend it, if you should find it. You can see the trailer here: