Are there any merchants in Legend of Grimrock 2? I want to know if I should hoard items or just drop the ones that I don't need. I assume it's the same as the first but I want to make sure.
No, there are no merchant in Legend of Grimrock 2. There is no money either. If you find a better item, you can drop the old one or give it to someone else in your team.
If you drop something, you should note it on the map, because some puzzles need special objets like rocks and more. So you may need it later in the game.
What i did was have my packhorse character (the minotaur in my game) hang on to spare items in chests or sacks, and then collect them together near a central save crystal. If you do leave them, then leave a big pile/sack/chest of them together and mark it on the map. DO NOT leave things lying around randomly, or you run the risk of needing some item and not knowing where it is.
Later in the game i got a bit OCD and organised all the loot i'd gathered throughout the game into 10 different chests - a chest for light weapons, a chest for heavy weapons, etc.