We have 2 Walmarts in the same city about 25 miles SW from us, and one 15 miles North. Two of those never did stop selling their fabric, but one did. I think that one is slowly adding fabric back. You can find some really nice fabric at Walmart, too. I don't sew as much as I used to but I still love to look at their fabric, and buy a piece now and then.

I live in the heart of Wal Mart country and ours did away with the craft dept several years ago, too. We went from having Hobby Lobby, Hancocks and Wal Mart, all within one block of each other, down to just Hobby Lobby and their fabric dept isn't what it used to be, either. And now, Wal Mart has it back. Not quite as big as before, but way better than it was a few months ago with the 3 spools of thread and 2 zippers. I rarely buy the fabric there but sometimes I'll get muslin or interfacing, basics like that.

we have 2 walmarts in our town, the one in town doens't carry fabric anymore, just sewing machines & needles & craft stuff, but the one on the bypass still has fabric,
me & my dh still go back their & look once in awhile to see
what they have.