No one was injured but the occupants of the shop, including the children who were told to sit on the floor and be quiet, were left shaken by the robbery.
Around the same time yesterday one man in a balaclava entered St Andrews Superette on Otonga Rd.
He grabbed the till and was again seen to get into a silver Mazda Familia containing at least one other person.
The Mazda believed to have been involved in both robberies was located abandoned in Ti St, Rotorua around 7pm last night.
The vehicle had been stolen from Auckland on Thursday, May 22.
"Aggravated robberies are crimes that often leave victims traumatised," said Detective John Hope.
"The fact that these offenders showed no hesitation in committing this particular robbery in front of three very young children is despicable."
If you have any information about the two robberies police want to hear from you.
Police also want to hear from anyone in the Ti St/Fenton St area between 3.30pm and 7pm on Sunday who saw the Mazda being abandoned or any other suspicious activity.
Anyone with information is asked to contact Rotorua Police on 07 348 0099.
Information can also be provided anonymously to the organisation Crimestoppers on 0800 555111.