A MAN was in police custody last night over an alleged attack in one of Hobart’s popular entertainment and restaurant precincts that left one woman dead and sent a community into mourning.

Tasmania Police arrested a 35-year-old man at a property in Claremont about 11 o’clock last night.

North Hobart business operators were shocked by the death of a “popular” and “hardworking” 68-year-old shopkeeper who received multiple stab wounds to the upper body.

The woman, who the Sunday Tasmanian has chosen not to name, was allegedly attacked about 12.20pm in the A & B Foodstore at 396 Elizabeth St.

The woman owns and operates the store with her son.

State Cinema owner John Kelly, whose businesses are located nearby, said the woman was a “North Hobart institution” and the local community was in shock.

“Our thoughts and prayers are with the family,” he said.

Police were last night taking witness statements, doorknocking the local area, talking to business owners and requesting CCTV footage as part of their investigations.

The arrest happened about 11pm in Claremont.

Earlier, Hobart CIB detective Inspector Ian Whish-Wilson said the woman had received multiple stab wounds at the store and a person fled the scene.

Insp Whish-Wilson said police set up a command centre at the site and had called for witnesses.

The grocery store is located between an Asian restaurant and a popular cafe.

Workers in nearby businesses were shocked to hear the news that the woman — who they said worked seven days a week — had been killed.

Insp Whish-Wilson said businesses had had “mixed reactions” to the news of the woman’s death.

Many stores remained open yesterday after the tragedy and it is expected to be normal trading at North Hobart today.

One shopkeeper who did not want to be named said people on drugs were becoming an increasing problem at North Hobart.

Insp Whish-Wilson said there was no evidence to suggest drug use was increasing in the area.