Our local Walmart was just remodeled into a super Walmart. They do have a craft section in the store, however, they did not bring any fabric back into the store whether it was bolts or pre-cuts.
I asked the person who was working the craft section about fabric and was told that since we have a JoAnn's and Hancock's and a couple of local quilting shops they would not be bringing fabric back into the store.
These other stores were here when our local Walmart was selling fabric from bolts and the fabric section was always busy. So I think it's up to each individual manager to decide whether they're going have fabric in the store not. I think this local manager just doesn't want to be bothered with it.