He is seen yelling as he waves the knife around in the air. It is unclear what the man is saying.
As the man walks, he appears to wave the knife at people in the store.
A security guard then shooed the man away as he held on to a shopping cart.
Shoppers with young children are seen just metres away from the incident.
Police said the man left in a vehicle before they arrived.
After further inquiries and with assistance from the police Eagle helicopter, the man was located at a Beach Haven address and arrested an hour later.
A 41-year-old man will appear in the North Shore District Court on October 14 on a charge of possessing an offensive weapon.
Pak’nSave owner Foodstuffs has been approached for comment.
Sign up to The Daily H, a free newsletter curated by our editors and delivered straight to your inbox every weekday.
