Manuel Theoharis was at his shop at Central Station about 6.30pm on Wednesday when a man since identified as 30-year-old Danukul Mokmool allegedly grabbed him from behind and threatened him with a bottle.
Mr Theoharis, 73, says he initially thought his attacker was a friend playfully surprising him until he felt the jagged glass pressed against his neck.
He managed to escape the man's grip before he grabbed a pair of scissors and kicked over buckets of flowers, breaking vases.
Police shot the intruder after he allegedly refused to put down the scissors.
Mr Theoharis said officers had escorted him around the corner when he heard loud shots.
"I feel sorry for him, he's not alive and I'm happy. I have my life but I could be where he is," he told AAP.
"I was in trouble."
Cleaning up broken glass and scattered flowers with family and friends on Thursday morning, Mr Theoharis said the man didn't ask for money.
"The only thing he said was, 'Call the police, don't move'."
Salim, who owns the kebab shop near the florist, rushed out after he heard people screaming.
He said he saw the elderly florist, who he has worked alongside at the station for years, covered with blood.
"I heard a noise - three shots - but I only realised what it was after I heard someone screaming," he said.
Salim said he saw the suspected attacker lying on the ground surrounded by police as he rushed past to help his injured friend.
A police critical incident investigation team has been formed to investigate all aspects of the shooting, including the discharge of firearms.
That information will be handed to the coroner and police are appealing for witnesses.
