Police spokesman Micky Rosenfeld says two assailants entered the shop in Beit Horon, northwest of Jerusalem, and began stabbing Israelis inside.
Rosenfeld says a security guard fatally shot the attackers outside the store.
Rosenfeld says two Israeli women were wounded in today's attack, one critically.
The last four months have seen near-daily Palestinian stabbing attacks that have killed 25 Israelis and an American student. At least 149 Palestinians have been killed by Israeli fire, 104 of them identified by Israel as attackers. The rest have been killed in clashes with Israeli troops.