Just White, a former linen now toy shop in Sydney's Queen Victoria Building, told SBS it has removed Golliwog dolls from its shelves after pressure from an online petition to ban their sale.
A spokesperson for the shop said they did not mean to offend anyone and had decided to stop selling the dolls.
In his online petition to ban the doll from being sold in the shop, Jonathan Zaharias said for people of colour like his girlfriend, the doll represented what he described as "hundreds of years of racial oppression and vitriolic opinions."
Mr Zacharias started the petition after he and his girlfriend noticed the dolls, which in recent decades have become a subject of controversy with many arguing they are racist.
The Golliwog began life as a character in a book published in London in 1895 titled "The Adventures of Two Dutch Dolls," created by Florence Kate Upton.
In the book, the original Golliwog character was described as "a horrid sight, the blackest gnome" and was influenced by the blackface minstrel tradition popular at the time.
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Last month, former Victorian Premier Jeff Kennett weighed into the debate after criticism over their sale in a Melbourne toy store.
Fairfax Media reported in February that Mr Kennett had about 50 dolls in a collection he began 60 years ago and believed the Australian of the Year, David Morrison, should stand up for Golliwogs as part of his commitment to inclusion, diversity and gender equality.
