It only applies to the particular name/number combination of the retired player. For example, you can't get a Cowboys jersey with "Smith" and number 22, but the same name with any other number is okay, as is any other name with the number 22. (Incidentally, trying to customize a Packers jersey with Brett Favre's name and number was rejected owing to, "Language deemed inappropriate, derogatory, or profane". Make of that what you will.)