Fawkner Embona Task Force detectives are appealing for witnesses following an armed robbery at a retail store in Coburg on Saturday.

A woman was seen loitering in the vicinity of Waterfield Street just after 3.30pm.

She was also seen to drop a knife from her handbag before picking it up and continuing to walk along Waterfield Street.

At around 3.50pm the woman walked into a clothing store on Sydney Road and demanded staff open the till.

The woman reached into the till and stole an amount of cash before walking north on Sydney Road.

The woman is described as wearing a black/tan head scarf wrapped around her face, blue gloves, light blue jeans, a purple/blue long sleeve top and was carrying a tan/brown bag.

Police have released an image of a woman they believe can assist with their enquiries.