Bunnings stores at Kirrawee and Caringbah will reopen to all customers from Monday, September 6.
However, stores in St George, which are in local government areas of concern, will continue to be open only for trade customers and the contactless collection of online orders.
Bunnings said the decision to reopen all stores in non "hot spot" areas to retail customers followed the acceleration of the vaccine rollout.
Managing director Mike Schneider said, since the start of the pandemic, the safety of staff and customers had been the main priority.
"The acceleration of the vaccine rollout and the increase in opportunities for our team to get vaccinated has given us the confidence to re-open our stores in Greater Sydney, with strong COVID-safe protocols in place, including a one per 10 metre density limit applied," he said.
"For the reopening, we will be continuing to provide comprehensive COVID-safe measures in all stores and rostering security at every store to monitor compliance and help ensure customers are shopping locally.
"We will continue to encourage customers in Greater Sydney to utilise our contactless Drive & Collect and delivery options for non-urgent items, in keeping with the current public health guidance," he said.
Bunnings has also introduced an app which provides notifications to remind customers to minimise time in store.