Working part-time and scholarship retention?

Yes, I would see how first semester goes. If you find you have extra time and things are going well, maybe do a few hours of tutoring or something. And next semester or next year find an on campus job for a few hours a week.

I agree with @dodgersmom in that I would tell them why your are declining the job at this time. As a full time engineering student and without ability to work around schedule and exams, you cannot work there during the semester.

Thanks everyone for the help and insight. I was busy with OA today and the store did not call back to me…I am going to wait until I hear back from them and tell them what I decided.