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I can't speak for Wal-Mart, Target, etc. but I did learn that the now-defunct Linens N Things would not let you return used bedding. It's along the same lines as returning a mattress - there are some people who see it as a sanitary issue, or maybe even something like bedbugs. It doesn't really surprise me that IKEA wouldn't take it back.

All things considered, I love IKEA.
Yes, and the horrendous returns policy at Linens 'N Things is one major reason that they didn't survive IMHO. They required you to return things to the same store where you bought them and then they issued you a refund 'gift' card that was then only good at the one store. They also would not take anything back without a receipt (I thought we were in the electronic age now). Talk about not very customer friendly!
 
I have to admit that at least Ikea's product quality has risen the last couple years; it used to be quite crappy but now the it seems to have risen to a range of "crappy to okay".

Perhaps their service never kept pace to their product quality.
 
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