Lovecraft store in Canton, Cardiff, has four mannequins in s**xy undi**s with a sign saying: "Everything you’ve read about in Fifty Shades of Grey you can buy here.”
But many residents have objected to the display, including a councillor and the headteacher of the local primary school.
Labour councillor Iona Gordon said: “I represent members of many ethnic minority communities, many of whom observe the Muslim faith.
“I know both Muslim men and women find the window display offensive on religious grounds.
“A lot of families in the community originate from the Asian sub-continent and Somalia and on a daily basis they have to go by that window.
"They find it unacceptable.”
And Julie Morris, head of nearby Severn Road Junior School, also made a complaint.
She said: “We have over 500 children at our school with many of our children coming from Muslim families.
“I feel the lack of clothing on the models would offend the many Muslim families in the area.”
She also added: “I find this display offensive in that it portrays women as s**x objects only.
“Many of the children at the school walk past the shop regularly and I am unhappy about them seeing such a negative portrayal of women on a daily basis.”
But Lovecraft’s owner Simon Sternschuss claimed his displays were no different to that of adult shop Ann Summers or lingerie chain La Senza.
He said the shop, which sells adults DVDs, s**x toys and lingerie, had operated for more than 15 years without problems on the busy suburban shopping street.
His representative, Cathy Williams, told council chiefs that the mannequins were not naked.
She said: “Mr Sternschuss doesn’t want to offend the neighbours - he’s been there since 1997.”
The council’s public protection committee has now renewed the shop’s licence with no conditions on its window display.
Mr Sternschuss said: “They’ve made the right decision - if I’d been made to blank out the windows it would have taken the industry back 30 years.
“The majority of my customers are women and couples now. It would have scared customers away.”
