The range of over 300 toys and apparel products was acquired from Woolworths in 2009 and re-launched with new ranges, a web shop and a Facebook presence.
Other nominees in the category include Chosen by You Scotland food range; B&Q's Simplifit flooring line; Boots Pharmaceuticals products; Editions fashion range from Debenhams and Private label bikes from Halfords.
George MacDonald, deputy editor of Retail Week, commented: "The diversity of products shortlisted in this category is a great example of the innovative practices taking place right across the retail sector, from toys to food, clothes, healthcare, DIY and cycling.
"Retailers today are perhaps under more pressure than ever before to constantly evolve their products and ranges, driven by an insatiable customer demand for something new and this category will help recognise and reward the industry's tireless drive for innovation."
The awards will take place on March 15th 2012 at the Grosvenor House Hotel, London.
The judging panel comprises some of the most influential names in the UK retail sector, including;
Andy Clarke, chief executive, Asda Group; Terry Duddy, chief executive, Home Retail Group; Ian Filby, chief executive, DFS; Simon Fox, chief executive, HMV Group; Alan Giles, chairman, Fatface; Vanessa Gold, managing director, Ann Summers; Mark Newton-Jones, chief executive, Shop Direct Group; Richard Pennycook, group finance director, Morrisons; Mike Shearwood, chief executive, Aurora Fashions; Euan Sutherland, chief executive, B&Q; Rob Templeman, chairman, Gala Coral and British Retail Consortium; Laura Wade-Gery, executive director multichannel E-commerce, Marks & Spencer.