Our HL has many of the same fabrics as WalMart, only more $$$. Fabric selection is smaller than WM. Packaged batting is almost non-existent. Our WM hasn't indicated that we'll loose the fabric section.
I use their coupons to get the pricey tools, rulers, etc. Will also use one to buy a bolt of Warm & Natural, or 10 or more yards of WonderUnder & so on.
Even if you get your newspaper, you can get a couppon off the website. Print out as often as you need to and visit every day. ☺