Mr Tisch, a 71-year-old retired Vietnam veteran, has previously caused a stir with provocative signs, including "Become a liberal, remove half your brain" and "Hillary's health plan - free condoms for Wild Bill". He also has a sign inside the store warning of a "two per cent surcharge for Democrats".
"Does anybody think that's serious?" he told local news station WGN9. "The sign is, no question, satire. People are just too serious. Everybody's becoming offended in this country today. I mean, the place has gone crazy."
Despite the outrage, he insists he is not anti-transgender. But he did back Mr Trump's transgender military ban, saying there were better uses for tax dollars than gender reassignment surgery.
"I have nothing against transgenders, queers, gays, whatever you want to call them," he told local news site Patch. He said while people were offended by his sign, he was also offended. "I'm offended because, as a taxpayer, I am paying for people who want to get a sex change in the military. That's what I object to."
Users on social media were scathing. "There's not a huge transgender population and very little real understanding," wrote Daryl Lyn.
"There's still A LOT of fear in coming out. Can you blame them? Gender dysmorphia is not a choice and has zero to do with sexual preference. And no, it's nothing like being blonde. It's not even like being African-American.
"We all know that discriminating because of skin colour or sex is wrong. There would never be a sign allowed saying 'no African-Americans need apply'. This is not different. This is wrong."