I think I would write a letter with all details to my state attorney general in addition to some of the things advised above.
Did you use another credit card to pay for the purchase? Sometimes I am asked for drivers license/ID when I use a credit card. The one and only purchase I ever made at Kohl's they asked for it when I used my MasterCard. I would never have thought they would be using the info to apply for a store card. They better not have done that!
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