The Wal-Mart where I live has a tiny fabric/craft department, which is sad because it was pretty big until they made the switch to a "Super" center.
The best fabric/craft department I have ever seen in a Walmart (super or regular) is in Whitewater, WI. Now I may be a bit biased because I used to work there, but it is the truth. The department manager is sooo nice, she's very smart about everything in that section. She will go out of her way to special order fabric for anyone. I have seen her on the phone for hours with vendors trying to get certain fabrics. Everyone that works in that section is very knowledgeable too. It is always really clean, organized, and well stocked! This fabric/craft department has a large variety of EVERYTHING! $1.00 and $2.00 tables, regular priced fabrics, holiday prints, fleece, upholstery, sheer, nettings. It's really wonderful.
I would definitely recommend this fabric/craft department to anyone coming through south eastern Wisconsin.
Not to get off topic, but I see that Target now sells sewing machines. Maybe they will pick up where Walmart is falling behind.