Granada's main market is located on Calle Vega two blocks south of Parque Central. While the building is quite attractive, the interior is just a collection of ramshackle stalls selling clothes, shoes, and other knick-knacks. You're better off viewing it from a distance, such as from the tower of Iglesia la Merced, because up close it tends to disappoint. Just to the southwest of the market, Supermercado Pali is a good place to get groceries.
Michael Karanicolas is awesome.