Honestly, i don't notice it as much in the stores now as I used to. Years ago, when fabric stores were all in the Malls I couldn't stay in one for more than a few minutes. Now that most (around here) are free-standing buildings the formaldehyde smell doesn't seem as noticable. Better circulation maybe?? I knew it was formaldehyde even back then-recognized the smell from disinfecting stuff at work.
I wonder if they got a particularly strong shipment in and got complaints?