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John Gualtieri, Kmart retail director Australia & New Zealand confirmed Kmarts across New Zealand will be selling dolls with Down syndrome.
The dolls will be introduced into stores in time for Christmas and will be sold for $15.
"We want all of our customers [especially our littlest ones] to be able to find products they can truly relate to; and we're committed to championing inclusion and diversity to make sure this happens.
"To evolving and expanding our representation of diversity in our toys and dolls, to more accurately reflect people of different ages, genders, ethnicities, abilities and sexual orientations," Gualtieri said.
"We want children to see themselves represented in our doll ranges and we want to help children learn more about people who are different from themselves."
Kmart currently sell dolls which include an amputee doll, a visually-impaired doll with glasses and a cane, a doll with crutches and one wearing a cochlear implant.
A doll with a wheelchair is also being sold for $12.
According to Gualtieri Kmart is on a "mission to make everyday living brighter for Australian and New Zealander families".
Kmart customers have praised the company.
"May make children feel safer and more confident. Thank you for selling these Kmart," one person wrote.
"This is absolutely fantastic that Kmart have finally bought these dolls out, they are adorable," another commented.
"This is amazing. Well done for promoting diversity."
"Yay for inclusion," another wrote.