City store entertaining centre of fashion (5)
I believe the answer is:
delhi
'city' is the definition.
(Delhi is an example)
'store entertaining centre of fashion' is the wordplay.
'store' becomes 'deli' (deli is a kind of store**).
'entertaining' indicates putting letters inside.
'centre of' means to look at the middle letters.
The central letter of 'fashion' is 'h'.
'deli' going around 'h' is 'DELHI'.
(Other definitions for delhi that I've seen before include "Capital at one time" , "Indian capital city" , "Asian city" , "Indian territory" , "It's also new in India" .)