The suspect is in custody after surrendering to police in the hours-long barricade.
Los Angeles police said the incident started with a family dispute in the 1600 block of 32nd Street in South Los Angeles, where the suspect shot his grandmother and another female victim, police said.
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The suspect, who's in his late teens, then fled in his grandmother's 2015 Toyota Camry, taking the wounded female victim with him.
A pursuit then ensued until the suspect crashed, and an officer-involved shooting occurred.
Police said the suspect fled the vehicle and ran into the Trader Joe's, located in the 2700 block of Hyperion Avenue.
Many hostages were spotted walking out unharmed and with their hands up.
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Several SWAT officers and an armored vehicle are surrounding the building.
Los Angeles Fire Department officials confirmed another 20-year-old woman was transported in fair condition. It's unclear what type of injuries she sustained.
A family reunification location for family members affected by the barricade situation is at LAPD Northeast Station, located at 3353 N. San Fernando Road. You can also call 323-561-3211.
The public is urged to avoid the area of Hyperion Avenue and Griffith Park Boulevard.