Crossword Genius

Agnes went mad in local shop (9)

Ross

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" .)

I've seen this clue in The Times.
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