Local souvenir stores in France, for instance (8)
I believe the answer is:
republic
'france for instance' is the definition.
(France is a republic)
'local souvenir stores' is the wordplay.
'local' becomes 'pub' (one's local pub).
'souvenir' becomes 'relic' (synonyms).
'stores' is an insertion indicator.
'pub' going within 'relic' is 'REPUBLIC'.
'in' acts as a link.
(Other definitions for republic that I've seen before include "Political system of government by the people" , "Country in which supreme power is held by the people" , "Nation with a president as head of state" , "Type of state" , "Pub relic found in a type of government" .)