Here are some comments from Walmart's site.
~~CrystalSword (08/27/2011)
Walmart is in the process of bringing fabric back to many of its stores, talk to the manager and see how soon it will be back in your store!
~~Nohandle (08/28/2011)
Unfortunately I don't sew but learned on a local website the Fabric Department was being returned to the two local Walmart Superstores. From what I understood it was because of the complaints and threats that those customers would not return for all those other purchases they made while shopping for fabric.
And, after-all, they do SELL sewing machines - don't they? I'm going to call several stores and see what the managers have to say about bringing fabric back.