Does a landlord of commercial use space have the right to refuse to rent or lease to someone who plans to open a store that sells adult sex toys, books, lingerie etc.

Yes they can. There may be zoning laws that prohibit it or it could be outside the character of the neighborhood. They may just feel that the business won't succeed in the area. But smut purveyors are not a protected class so there would be no discrimination issues.

ScottGem, Thank you for your answer, it is very helpful