Should transvestites be allowed to try clothes in ladies' dressing rooms?

I was in an upscale department store a few days ago, planning to buy some jeans. As I headed toward the ladies' fitting room, an obvious transvestite emerged carrying a handful of rejected items. He took these to a nearby saleslady and told her they weren't suitable. The saleslady had been holding some additional items for him, which he then took back into the fitting room.

I stood there in total shock observing, but hardly believing, what was happening. As he walked back to the fitting room, the saleslady noticed me and asked if I needed something. I stammered that I was looking for the candid camera, half hoping there was a colossal joke going on. "Oh, that," said the saleslady, gesturing toward the transvestite as he re-entered the ladies' fitting room, "we get that sometimes. Would you like to try those jeans now?"

I replied that I wouldn't be trying on any jeans while a man was in the dressing room. I tossed the jeans on a rack of clothes and left the store. I am dumbfounded that this person didn't seem to understand my dismay. I didn't mistake an ugly woman for a man. I saw a man in a wig and a dress enter a space that is reserved exclusively for women. There was no way I could have undressed comfortably with him nearby.

What do you think the saleslady should have done? I know we can't discriminate, but this was ridiculous.