More than $500,000 worth of stolen goods has been seized and nine people arrested over an alleged Footscray crime racket, in a bizarre case of bad timing for those arrested.

After a surveillance operation, police searched a Nicholson Street grocer, a self storage unit and a gift shop on Friday, where they found a large number of items allegedly stolen from major retailers.

They believed the goods, including make-up, vitamins, alcohol and other personal items, were being on-sold to smaller outlets.

A 60-year-old man and 63-year-woman, both from Coburg, were arrested at the grocery store. Police said the couple were renting the self storage unit.

They said during the initial investigation, detectives realised a nearby gift shop was also linked to the alleged racket.

In a remarkable twist, while police were searching the self storage facility, the operator of the gift shop arrived with a large amount of allegedly stolen goods.

Police then searched the store, the owner's rented storage facility and his car and found more allegedly stolen items.

A 53-year-old Footscray man and 53-year-old Footscray woman were then arrested.

Another five people arrived at the gift shop while police were still at the scene, also carrying allegedly stolen retail items.

All five were subsequently arrested.

Police said all those in custody are expected to be charged with offences such as handling stolen goods and possession of proceeds of crime.