IMHO I believe it is because they don't want to have to deal with a department that requires "Customer Service". I was in my local Walmart a couple of weeks ago when I found out they were closing the fabric department. My son happened to call me on the phone so I told him I was upset because of this and I told him the same thing I stated here. Little did I know three store managers were walking by and boy oh boy did I get some funny looks but, heh, they just kept on walkin'. My departed MIL did alot of store setups for Walmart back in the day. Mrs. Walton insisted that there be fabric and crafts in every store but alas, now that she is gone, it is all disappearing. I think its a shame.

Our local WM manager told me that as they get to a given store for the system-wide remodelling that WM is doing, that's when they phase out the fabrics etc.
And it has been true so far around here. They started low on the Texas coast, and the remodelling is crawling up the highways town to town, and fabric is disappearing right along with the remodelling.
One of our local stores put in a rack of FQs right away, the other ones so far have not done so.
I do notice mostly lower quality fabric in these FQs, but every now and then they slip up and put a really nice piece of cloth on the little cardboards folders. I have bought everything of the FQs that caught my fancy, because you know how WM is - Here today and probably not here tomorrow.

You are right about the customer service areas. Anyone who works in one of those areas gets paid a little more then the ones who don't. They will also be changing the paint dept. They will be going to already mixed paint. No more custom colors and will be getting rid of the paint mixer. If you notice when you go in one of the stores now it's hard to find anyone who works there. They only hire part time now so no benefits and most workers don't start until 3 in the afternoon. The only full time employees now are dept. managers and up, but that will be changing too. It's all about the $. They are trying to make Wal-Mart a self service store now.

actually the only way to keep your fabric dept. and or maybe get it back at your store is to let walmart's corpporate hdquarters know that you are unhappy about losing this dept.It takes a village to raise a child! So it takes your area to let them know that you are loyal customers who would turn else where to shop! This is what it took here in 2 neighborhood walmart stores to keep them from phasing out their fabrics.Having places like foodmaxx and such right across the street from them also helped push the issue!!

we also have target and are one of few areas that still have Kmart. which could service our needs for other things. Recently Khols has also been added.

I inquired at Coralville WM last week as to the possibility of deleting the fabrics. She said "yes" but didn't know when and couldn't understand why they were still ordering more fabric. Puzzling to say the least. Yeah, men---they have no idea our needs (in regards to feelings).LOL

I've got to go shopping. We have a couple Targets in this town and I never go there. They had bad press one Christmas and would not allow Salvation Army Bell Ringers there and I thought...What's Christmas without the Bell Ringers? and What could it hurt.....So, I decided to by-pass it. Never looked again to see if the public pressure changed their decisions. It would be nice to know there are other outlets. Our textile mills have been shipped to other countries and lots of us were without work because of it. The quality isn't the same. Thanks for mentioning Target. We have K-mart and they do not have any crafts. Two Walmarts and they are slimming down by the day. Think I'll find me a black rose to wear when I go there. :(

It worked at our two local WalMarts. We bombarded them with phone calls. They are reworking our one WM and it looks like the fabric department might be getting larger. Won't know for sure until they get it organized. Quilting is on the rise in our area and the WM gets lots of emergency business. Our extension office is less than 1/4 mile from WM. That extra spool of thread or larger piece of background fabric -- it's a quick trip -- our SM hardly has time to cool down. They keep getting shipments of fabric and more and more there is the same person manning the department. This could be a good sign.

You saw quilting fabric for $19?? Liberty of London? The most I've seen in our LQS is $7-$10.

Well I was at WM again, had to return something. So I thought I would just go look at the fabric sense I am already here. They got some new bolts in for $1.50 a yard for 100% cotton solids. So much for just looking. LOL. I don't have a lot of solids so I had to get some.
As you can tell I spend a lot of time at WM. There isn't much else to do here in this little town.