Police claim 59-year-old Peter Ashby approached the 27-year-old man at the store on Victoria Road in Ermington at 5.15pm yesterday and allegedly attempted to assault him.
The supermarket staff member was not injured and Ashby left the store.
Officers were called and a crime scene was set up.
Witnesses said they heard someone running and shouting.
“Come out, have a look, and old mate is in handcuffs getting chucked in the back of a paddy wagon,” one resident said.
Another resident described the situation as frightening.
“There was lots of screaming and yelling,” she said.
“Pretty scary, it’s our local Woolies, we’re there at least a few times a week, hearing something like that is pretty scary.”
CCTV showed a man yelling and walking through the shopping strip with an axe while carrying shopping bags.
Police arrested Ashby about an hour later on Seamiest Avenue and said they found an axe nearby.
The 59-year-old was taken to Ryde Hospital for an assessment under police guard.
He was later taken to Gladesville Police Station where he was charged with affray and armed with intent to commit an indictable offence.
Ashby will face court tomorrow.
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