The blunder was met with fierce criticism on Facebook.
"Ummmmm Kmart - you need to review your description for kids DVDs his (sic) is disgusting," one woman wrote.
"Shocked and appalled. Shame on you kmart. I really hope that's not what this movie shows, it's still rated G!" another posted.
Shopkins World Vacation is a children's DVD where characters go on a wild chase around the world to find their friend innocently caught in the middle of a diamond heist.
In a statement, Kmart Australia has apologised for "the incorrect Shopkins World Vacation DVD product description".
"Once we were made aware of the description error, immediate action was taken place to ensure the product was removed online."