The Walmart store in Clearlake, CA was upgraded and they still have fabric. A good selection of the more expensive fabrics as well as an awesome selection of $1 per yard fabric.
The Walmart store in Ukiah, CA still has fabric - not yet a remodeled store.
Bottom line is that corporate does not see fabric as important to the overall sales.
I have to drive 20 - 60 miles to go to a Walmart. I usually shop go to buy fabric and pick up other things. When they no longer have fabric there will be less need for me to shop at Walmart.