I always loved the fabric departments, and yes most larger stores had them. My first quilt was made from fabric I ordered from the Montgomery Wards catalog in 1977, I don't remember exactly but I know it was under $20 and yes the quilt is still in the family. In the 70s, the Sears store didn't have fabric but they had sewing machines and the non-affiliated fabric store was just on the other side of the mall door. My first big purchase after leaving home was the top of the line Sears sewing machine with the cams, just before they went computerized. It cost about as much as 3-4 months rent.
I did live in a small town with an old 2-story Penney's that had the zip line and tube system.