I talked to the fabric lady at Walmart last week and asked if they are getting rid of all fabrics--a big No! on that--but she did acknowledge that they are moving toward more precuts, especially 1 & 2 yd cuts. She said they were going to keep basic colors and some quilting cottons, along with the fusibles and some home dec and a little bit of clothing stuff. But the size of the department did not seem to be shrinking. She said it was so that they did not have to have people "dedicated" to the fabric department & it would cost the store less $$.