Yes, you can use caminábamos to describe a continued action in the past or an unfinished action.
The first translation is:
Caminamos de tienda en tienda para comprar las flores más baratas y hermosas.
We walked from shop to shop to buy the cheapest and most beautiful flowers.
On the other hand:
Caminábamos de tienda en tienda para comprar las flores más baratas y hermosas.
We used to walk from shop to shop to buy the cheapest and most beautiful flowers.
We were walking from shop to shop to buy the cheapest and most beautiful flowers when something occurred.
Normally, the past tense is used for completed actions in the past and the imperfect tense is used for continued actions. In your example:
Esta mañana fui a la playa: I went and I arrived-> past tense.
Había mucha gente: There were a lot of people while I was there->imperfect tense.
Tomé el sol: I did it, but I am not doing it->past tense.
If you say Hubo mucha gente it usually means that the people went away while you were there.
You may find more information here.