Worshippers are objecting to a shop which declares it is the new transgender store for the South.
Councillor Heather James last night told Brighton and Hove City Council: "It claims to offer the widest range of lingerie, footwear, wigs, clothes, toys, uniforms and transgender products."
She presented a petition signed by 57 members of Holy Cross Church in Tamworth Road, Hove, opposing the shop in Portland Road.
It said: "We believe Portland Road is an unsuitable place for such a shop.
"There are schools nearby and it is a family and residential area."
A council official went to the shop and wrote to neighbours saying he did not think it was a sex shop that needed a licence.
Coun James said: "Officers have said the premises will continue to be monitored to ensure that it does not breach the legislation.
"Residents are still concerned."
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