Our local Walmart closed their fabric dept about 2 years ago. They recently brought it back but on a much smaller scale. Most of the fabrics I have looked at have been poor quality. Not like it was when they had the fabric dept previously. I'll keep checking tho when I'm in the store. You never know what they will bring in next shipmemnt.
On the other hand. We went thru McGee, MS going to Texas a couple weeks ago. The Walmart there has a great fabric dept. They had some nice fabrics on clearance too. I got some great fabrics for $1.50 - $2 a yard. I wish we lived closer to them.
