I have been looking as I traveled and I thought it might be helpful to post those WalMarts that currently have fabric for sale by the yard. I'll start. (Craftybear or some of you other web savvy folks may know a better way to post this.)

Washington, NC

Bought lovely spring prints there about 6 months ago and have shopped there several times since for fabric.

WM fabric dept in Denham Springs, La is now up and running.
They've already run out of LSU fabric (cotton).

Ours in Council Bluffs, Iowa has a small fabric dept.

Several in Ft Wayne, In have fabric

Our Lebanon, Oregon store has a fabric dept and there are some nice fabrics. but it is usally a mess.

Colonial Heights, VA's Walmart is steadily getting fabric put out.

The wal-mart in Somerset Ky. has fabric by the yd

Ridgecrest, CA

Plus they have the Block of the Month pattern w/fabric.

At least six Walmarts in the Jacksonville, FL area have fabric by the yard. Several in Gainsville, Fl do also.

I found out that you have to be very picky with the material. I bought a pannel their and it had tinny holes and the material had marks in it that didn't belong there. Had to buy more material and make it all over. That time I checked out the material first in detail. Must have been seconds.