LONDON, May 31 (Reuters) – U.S. retailer Target’s decision to remove some LGBTQ-themed merchandise after customer backlash in its stores highlights the problem with companies’ “rainbow capitalism,” said Erik Carnell, a transgender designer whose products were pulled from its stores.

Target (TGT.N) has sold LGBTQ-related goods tied to Pride month for years. But last week the big-box chain removed Carnell’s products, citing an increase in confrontations between customers and employees and incidents of Pride merchandise being thrown on the floor.