local produce shop; commodity store
Typically a shop selling local agricultural products, specialty foods, or regional goods. Often found in tourist areas or as a small community store.
I bought fresh vegetables at the produce shop in the roadside station.
This commodity store displays local specialty products.
土産物屋 is a souvenir shop aimed at tourists, whereas 物産店 focuses more on local produce and everyday commodities.
Compound of 物産 (products, goods) and 店 (shop). The exact historical derivation is uncertain, but the term is straightforwardly understood as a store for local products.