The dictionaries have a couple of definitions of fancy goods:
1-- fabrics of various colors, patterns, etc., as ribbons, silks, laces, etc., in distinction from those of a simple or plain color or make.
2-- goods that are chiefly ornamental
In your passage, the phrase seems to indicate further products of kinds similar to the specific ones mentioned in earlier sentences.
'Dangled their insidious graces' simply means that they were displayed in an alluring fashion. 'Insidious' because fancy goods are not necessities, but attract the shopper to spend hard-earned money that would be better spent for staples.
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