Seriously injured Derlano Samuels, 17, died later from a stab wound to the chest after the alleged incident, in Waterloo Road, Cape Hill, Smethwick, on May 1 last year.
Cam'Ron Dunn, who turns 19 on Tuesday, is accused of pursuing the alleged victim after initially stabbing twice him in the street before pursuing him into the shop where he "slaughtered" him by "striking him over and over" again with a "Rambo-style" knife.
At the opening of the trial, Miss Michelle Heeley QC, prosecuting told the jury at Wolverhampton Crown Court that it was a "shocking" incident which had been captured by security cameras installed in the vicinity.
"On May 1 last year Derlano Samuels was stabbed multiple times by this defendant. He collapsed and he died.
"The prosecution case is that this defendant murdered Derlano Samuels. The defendant Cam'Ron Dunn said he acted in self-defence. You can be sure he did not," Miss Heeley said.
"The defendant left his home on his bicycle at 4.02 pm. By 4.13pm he had stabbed Derlano Samuels. He was back home by 4.20pm. His every movement was captured on CCTV.
"We will watch it together. Please note that some of what you will see is shocking. The entirety of the stabbing was caught on camera. You will understand why the prosecution says this was not an act of self-defence."
Miss Heeley told the jury that shortly after leaving his home Dunn had an altercation with the occupant of a white Ford Focus that was parked in the high street. She said at that same time Derlano was walking further up the road and had not been involved.
The jury was shown footage of the car door opening and closing. The defendant putting down his bicycle and approaching the car which then carries out a u-turn and is driven away from the area.
"The defendant is seen pushing his bike up the high street. Derlano Samuels is just starting to cross the road towards the defendant who drops his bike and immediately puts his hand towards his waistband. You see nothing in Derlano's hands.
"Dunn reaches into the back of his trouser leg for a Rambo-style machete. He pulls out the weapon and immediately stabs him twice."
She said after leaving the shop the injured teenager was picked up by the Focus which is driven away, but crashes moments later, in Heath Street, Winson Green, where he was found by police and paramedics.
At one stage during Monday's hearing some member's of Derlano's family left the court as the footage was played.
Cam'Ron Dunn, of Sketchley Close, Smethwick, denies murder. However, he admitted an offence of having a bladed article at an earlier hearing.
Following his death Derlano’s family paid tribute to the teenager and said: “Derlano was ambitious, inquisitive and full of life. He was a generous young man who is much loved and missed by his family and friends.”
The trial continues.