Target has been forced to take beanies, hoodies and stubby holders containing the word Anzac off its shelves.

The retail giant was selling the merchandise on behalf of non-profit group Camp Gallipoli, which is holding family sleepover events in capital cities to teach children about Anzac history.

The group had a permit to use the word Anzac on some merchandise and was donating profits to the RSL and Legacy.

However, Veterans' Affairs Minister Michael Ronaldson has decided the three products were inappropriate and needed to be withdrawn from sale.