A police spokeswoman said they received a report of a man with a knife entering a retail store in Tay St about 1am and demanding cash.
The man (20) took nothing and was found by police about 1.45am after a search involving a dog team, she said.
He was charged with "demands to steal" and would appear in the Invercargill District Court this morning.
A man working at the store said no-one was injured.
The incident was frightening for the woman worker, he said.
The owner of the store said he was still compiling his report on the incident and referred further requests for comment to the convenience store's head office.