My area built a new Walmart which did not include the fabric department. They then went on to remodel their other local stores eliminating the fabric departments and I was told the same thing, that all stores would be remodeled and have this area eliminated.
Lo and behold----2 or 3 weeks ago, presto chango----fabric back in my local store. It's not bolt, cut to size but rather pre-cut and packaged in FQ and yardage and kits. Quite an assortment too and some really lovely batiks.
So my feeling is that all stores will probably add this back as a way to continue selling fabric to those of us who asked and at the same time not spend money on an employee to cut fabric and assist their customers.