i'll answer number 2.
no , if you look at the first store screen you will find a store level (i don't remember what its called) , its the level of the store, and if you buy or sell more from it it will level up, meaning it will have better equipment.
you can also get "into" some of the the items (the ones that glow in the item menu) in the item world, and you can up the stats of that item, or just to level up your party







