My closest WM never dropped it's fabric department, but I'm not a fan. I don't like the weight of the fabric, plus the prints always seem to be printed off grain and the colors seem off compared to other stores. Plus the fabric department also suffers from the "no one works here" syndrome that I find in nearly every department @ walmart.
I'd much rather use my coupon and go to Hobby Lobby, Joann's, or Hancocks or save to buy just what I need/want at my LQS.