City store called Habitat (9)

I believe the answer is:

stockholm

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'city' is the definition.
(Stockholm is an example)

'store called habitat' is the wordplay.
'store' becomes 'stock' (synonyms).
'called habitat' becomes 'holm' (I can't justify this - if you can you should believe this answer much more).
'stock'+'holm'='STOCKHOLM'

Can you help me to learn more?

(Other definitions for stockholm that I've seen before include "Swedish city" , "Sweden's capital city" , "Capital of Sweden" , "Scandinavian capital" .)

I've seen this clue in The Times and The Sunday Times.

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