Armed police officers were called to the Pak'nSave carpark on Mill St just after 1pm today after a person was reported to be in the area with a gun.
Nearby workers were shocked to see an armed police officer running across Ulster St towards a man, woman and child standing by their bus in the car park at about 1.20pm.
A police media spokesperson said police were called to the carpark after the people were unhappy after being asked to leave by a nearby retailer.
The group was standing near the group of shops housing The Helm bar, St Pierre's Sushi, The Cheesecake Shop and Subway.
The person was reported to have a gun, but early reports suggested it may have been fake.