I was going to a shop and saw....
Seeing happened in the process of going ? - possible, but strange
I was going to the shop and saw an accident on the street.
I go to a shop and I see...
Strange.
Well, yesterday went like this: I go to the shop and I see an accident - As if a narrative - using present in the frame of reference of the narrative present?
.
As Sylvia says, past is more common.
...
I went to the shop and there I saw this wonderful skirt/phone/car/dog.