UPDATE: An armed robbery has taken place at Mag's Cards and Lotto Store on Cameron Road this morning, police have confirmed.

The owner of the store was threatended with a knife during the indicent at about 10am, prompting a man hunt by police for those involved.

Police outside Mag's Cards and Lotto store.

Senior Sergeant Eddie Lyttle says police are still in the middle of the investigation and can't offer any more information at this stage.

A SunLive reporter says police are still at the dairy and detectives are talking with the shop keeper to ascertain what happened.

The owner says he was threatended by a man with a small knife.

He does not wish to comment further at this time.

The suspects are reported to have fled the scene in a vehicle and headed down Birch Ave.

Police were later seen parked at River Oak Road.

Western Bay of Plenty road policing acting manager Senior Sergeant Mike Owen says he has traffic units in Birch Ave and at a another address nearby to piece together exactly what has happened after a car of interest crashed with other vehicles.

Earlier:

UPDATE 10.25: Police are outside a Cameron Road premises where it is understood an armed robbery has taken place this morning.

A reporter at the scene says a police car is parked outside Mag's Cards and Lotto store and detectives are currently interviewing the shop keeper.

They say police are still searching for a male in relation to the incident, and two dog units can be seen circling the upper carpark of Tauranga Hospital.

Police are also posted at every street entrance to the hospital.

A Tauranga Police spokesperson says police received a report of an aggravated robbery this morning.

When asked if police were still searching for anyone involved they said it is still under investigation and they cannot comment further.

A staff worker at 16th Avenue Cafe opposite the dairy says a police car remains outside.

Two police cars earlier stopped a red vehicle between 15th and 16th Avenues, headed towards Tauranga City.

Police at River Oak Road searching for people involved.