Gunman on the run after armed hold-up at bottle shop

Police were called to a liquor store on President Wilson Walk at Tanilba Bay on Sunday evening after reports of an armed robbery.

Officers were told a lone man had wielded a firearm during the ordeal, which unfolded at about 6.45pm on May 5.

"At the scene, police were told that a man entered the shop and threatened an employee with a firearm before fleeing with cash and cigarettes," a statement from NSW Police said.

It's understood no one was physically injured in the incident.

Port Stephens Hunter police set up a crime scene and have launched an investigation into the armed robbery.

As the investigation continues, police have urged anyone with information or footage from the area at the time to contact Crime Stoppers on 1800 333 000, or access the online portal.

In a separate incident in the Hunter earlier on Sunday, police arrested a man over an alleged scissor hold-up at a Boolaroo service station.