Wal-Mart plans to cut the space it devotes to children’s television merchandise, according to a report in The Times today.

The announcement caused shares in HIT Entertainment to plummet by almost a third yesterday.

HIT owns Bob the Builder, Thomas the Tank Engine and Angelina Ballerina.

Reports indicate that Wal-Mart believes it can more profitable devote this shelf space to other products.

Any success derived from the new store layouts are likely to be passed over to its European stores including the company’s UK Asda supermarkets.