Most of these have already been mentioned, but here's my up-to-date list for craft shops in Cork:
1. Cork Art Supplies - they have the supplies for most arts and crafts.
http://www.corkartsupplies.com/store/2. Vibes and Scribes Art Shop (it's on Lavitt's Quay, and a little bit down the street is one of their two bookshops with an amazing art history/photography/art selection, and they're really cheap) - sells loads of craft books, probably the biggest bead selection you'll find here, papers, paints, inks, wool, kid's craft supplies, sketchbooks, Fimo (small selection), ribbons, scrapbooking supplies and jewellery making supplies. I love the Vibes and Scribes chain here, I have to say.
3. Cork Craft Supplies (in Tesco on Paul St.) - I find myself going here a lot. It's only a little shop, but it's the best place for a great selection of embroidery thread, aida, waste canvas, stabiliser etc and all that sort of needlework supplies (I consider it a needlework shop, really). They also sell a small selection of beads, cross-stitch kits, fabric dyes, ribbons, possibly wool (but if they do it's not a huge collection, sorry I can't remember) and small booklets about stitches and stuff.
4. Joyces (same street as Cork Art Supplies) - I don't really consider Joyces a craft shop as much, but you might find something there. They have a lot of books and toys and kits and stuff. Craft-wise, I think it's most paper and glitter type stuff, and a bit extra. It's ususally pretty expensive though.
5. I know there's a yarn/wool shop somewhere - I think it might even be just opposite Cork Art Supplies, but if not there it's one of the sides streets parallel to it. It's pretty small, and it has a lot of knitted stuff in the window. I can't vouch for the quality, selection or prices, because I don't knit, but it's there.
6. Hickeys (in the Savoy and near B&Q opposite Mahon Point) - I went in there looking for fabric paint (doesn't seem to exist here, I'm afraid) and took a look at the fabric while I was there - can't say I was impressed. Also sells wool, embroidery thread, and other scraps of supplies (buttons, scissors, whatever). And when I went to one of the desks to ask about the paint, the women were all talking for ages and basically ignored me

7. Easons - art supplies, paints, sketchbooks, paper, etc.
8. Penneys - not a craft shop but it's good for really cheap clothes to decorate, embellish, reconstruct or use for fabric.
And yes, there are CRAZY amounts of charity shops here, but unfortunately I've never found anything good or worthwhile. I envy the American counterparts. I had given up on the ones here, but maybe I'll have another look now that I'm a Craftster
