Sam Parekh has instead seen community spirit shine with many customers wishing him well after the scary incident on Tuesday afternoon.

The business manager, who has run the Winnima Way shop for four years, was allegedly held up at gun and knifepoint by two masked men demanding cash.

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Police allege Michael Black and Trevor Leal entered the store, stole $1000 and fled in a car, that Richard Hasiuk was allegedly driving.

Lake Illawarra police then attended a home in Warwick Street, Berkeley shortly after 6.30pm following a tip-off of the suspected car's location.

Police obtained a search warrant and secured the perimeter before a five-hour siege ended peacefully with two men leaving with police.

A five-hour siege ended peacefully with Black and Hasiuk leaving with police.

Leal was arrested earlier after allegedly trying to leave the home.

A quick-thinking Mr Parekh had already pressed the silent alarm after two men got out of the car in front of the shop about 3.15pm.

"They were covered head-to-toe in black and were wearing masks," he said.

"I realised what was happening. I had already activated the alarm before they came through the door.

"One got up on the counter and asked where the money was. I told them where and got out of the way. They took it and left."

Mr Parekh said the hold-up was over in less than a minute and was the first time he had been robbed.

"It definitely was a scary experience. Nerve-wracking to say the least," he said. "Luckily my head was screwed on right. The alarm was on quickly."

Mr Parekh said he felt "alright" to go back to work on Wednesday morning

"I am a little hyper-vigilant," he said. "A lot of concerned customers have come in.

"The suburb gets a bad wrap but it really is not anywhere near what it is made out to be."

Lake Illawarra Police Inspector James Dark praised Mr Parekh's actions.

"He has done well and not challenged the offenders," he said.

"When a firearm or knife is involved we don't want anyone to be injured.

"It is an extremely violent crime, not just for the shop assistant but also witnesses walking past.

"To see that happen is certainly frightening."