Whangarei lawyer and TransAdvocate member Kelly Ellis told GayNZ.com that she complained to the Warehouse after she saw the cards that show a cartoon dinosaur wearing a wig, lipstick and a handbag on sale.
The card read, "Oh look! a Tranny-saurus!".
A Warehouse spokesperson responded to Ms Ellis, and said it had asked John Sands merchandisers to remove the cards from all its stores.
"Please pass our sincerest apologies to the community for this, there was no intention of offence. We try to work hard with our supplier so something like this does not happens, however something with many barcodes, this is sometimes not possible," a spokesperson told Ms Ellis.
Ms Ellis told GayNZ.com she was pleased with the response.
"That we've had such a prompt and favourable response shows growing acceptance of responsibility to our community.
"There's no doubt that while there is some acceptance of the word, most of the community considers 'tranny' to be a pejorative term," she said.
The same cards were pulled from sale at a UK supermarket almost two years ago after similar complaints.
NZME.