Trader Joe’s standoff: worker killed in armed standoff with gunman.

A woman was killed during a shootout between police and a gunman who ran into a Los Angeles supermarket and held dozens of people hostage for three hours before giving himself up.

The victim, named in media locally as 27 year-old shop worker Melyda Corado, was shot when the suspect exchanged gunfire with armed officers at Trader Joe’s in the city’s Silver Lake district.

It is not yet clear if she was killed by the police or the gunman, who had earlier allegedly shot his grandmother and injured another woman before crashing his grandmother’s Toyota Camry outside the store following a police chase.

Frightened customers and workers dove for cover as police fired at the suspect, shattering the store’s glass doors.

Some inside the supermarket climbed out windows and others barricaded themselves in rooms as scores of police and firefighters and 18 ambulances converged on the scene and prepared for mass casualties.

Heavily armed officers in riot gear stood along the side of the store and used mirrors to look inside as hostage negotiators tried to coax the man into freeing his 40 to 50 hostages and surrendering.

At around 6.30pm, the suspect agreed to handcuff himself and walked out the front door, surrounded by four of the hostages.

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