Golly Santa a best seller in Melb, Geelong

They're considered offensive racist caricatures, but "Santa Golly Dollies" are selling out in Christmas stores in Melbourne and Geelong.

The dolls are made by a Melbourne supplier and have been spotted in the Westminster Christmas store in Geelong.

Owner David Nolan said he would be upset if anyone was offended by the dolls, which the store rebranded as "golly dollies" after they came through from the supplier as "golliwogs".

"Certainly no offence or racial overtone is intended. I understand the politics which could be associated with this type of product," Mr Nolan told AAP on Monday.

"We're certainly not going to pull the product. It is highly collectible. It is the best-selling product we sell."

Mr Nolan said he had instructed staff to handle any complaints with sensitivity and to contact him directly if people complained, but so far there had been no complaints at either the Geelong or Melbourne stores.

"They never contacted me or came to the store and complained direct," he said.

"We have increased our order of them this year, and absolutely we're on track to sell out again."

He said he understood there was controversy about the dolls, which are now considered racist stereotypes of black people, but said there was no racial offence intended.

"It's a black doll in a Santa suit, that's the way we see it," he said.