Characters regularly seen in small-town shop (5)
I believe the answer is:
salon
'shop' is the definition.
(I know that salon is a type of shop)
'characters regularly seen in small-town' is the wordplay.
'characters regularly seen in' means one should take alternating letters (letters selected at regular intervals).
'small'+'town'='smalltown'
The alternate letters of 'smalltown' are 'SALON'.
(Other definitions for salon that I've seen before include "Call loudly" , "Reception room in grand house" , "Parisian art exhibition" , "Hairdresser's premises" , "Beautician's establishment" .)