Police investigating the armed robbery of a mixed business at Lake Illawarra on Sunday have arrested two people over the incident.

About 7pm on Sunday 20 October 2013, a woman entered the store on Koonawarra Road, Koonawarra, and asked the male shop attendant for cigarettes.

The woman then allegedly showed the attendant a firearm, demanded cash and more cigarettes and then left in a vehicle that was waiting outside.

The shop attendant flagged down a passing police car a short time later and a crime scene was established at the shop. No one was injured during the incident.

Detectives from Lake Illawarra Local Area Command commenced their inquiries and arrested a woman at Warrawong yesterday (Monday 21 October 2013).

She was conveyed to Lake Illawarra Police Station and later charged with armed robbery with a dangerous weapon. Investigators also searched her home where several items were seized for further forensic analysis.

The 31-year-old Lake Heights woman was refused bail to appear at Wollongong Local Court today.

About 11.30am today a 41-year-old man was arrested at Warilla by investigators.

He was taken to Lake Illawarra Police Station and is assisting with inquiries.

Detectives also seized a number of items at the home which have been taken away for further forensic examination.

Inquiries continue.