Thousands are in isolation after two workers at a Berala BWS, in Sydney's west, worked over a period stretching more than 10 days – with more than 1000 customers passing through the store on Christmas Eve.
Barilaro signalled there could be another local lockdown – like the one in the northern beaches – if the situation worsens. He said it could see the entire Cumberland local council area in Sydney's west subject to the strict orders.
He said the sheer number of customers passing through the store poses a big challenge for contact tracers, but that right now the situation is under control.
"If you look from 22 to 26 December, they could be big numbers, and we will always consider what we can do in relation to a lockdown, further restrictions, especially where there is a hot spot," he told Today.
"One of the things we said when we were lifting restrictions was that if we had to respond, it would be fast and it would be hard and local, just like we have done for the peninsular.
"There is no reason we couldn't do that for Berala, Cumberland LGA area, but right now the data says we are on top of it, and I trust the expert advice we are receiving."
NSW reported eight new coronavirus cases on Sunday while Victoria reported three new cases.
The list of high-risk venues continues to grow for NSW, with health authorities issuing a critical warning for the suburb of Berala in Sydney's west. There are now 13 cases linked to the Berala cluster and 148 linked to the Avalon cluster.