According to police, the incident unfolded at about 11:30 a.m. PT when a 37-year-old man walked into the store at Granville and Drake streets and grabbed a female employee.
Police say the man doused her in lighter fluid, held her at knife point and threatened to set her on fire.
A witness saw the scene unfolding and reported it to a nearby Community Policing Station.
The man barricaded himself inside the convenience store when police arrived.
Vancouver police Const. Brian Montague says the man released the victim and surrendered after about an hour of hostage negotiations.
"The victim did receive some minor injuries. That's how it's been described to me. They were not serious but she was transported to hospital as a precaution."
It's believed the suspect and victim had a previous relationship.
The Granville Street Bridge was closed for a short time due to the incident. Granville Street was also shut down between Drake and Davie streets.