Agnes went mad in local shop (9)
I believe the answer is:
newsagent
'local shop' is the definition.
(a newsagents is a local shop)
'agnes went mad' is the wordplay.
'mad' indicates anagramming the letters.
'agnes'+'went'='agneswent'
'agneswent' with letters rearranged gives 'NEWSAGENT'.
'in' acts as a link.
(Other definitions for newsagent that I've seen before include "Seller of papers" , "place selling organs?" , "Retailer" , "Guardian seller?" , "paper supplier" .)