Yep, I hear it everywhere. Wal*Mart puts pressure on vendors to keep the price down. The end result is not different from any other general-interest store (like K-Mart): Only the cheapest, ugliest models are stocked. And I have no problem with that. Hey, when I went looking for my first shotgun, it was a K-Mart special. It took a few years for it to sink in, but I finally realized that it's better to pay twice or three times as much for a better model.
And that's fine by me. If I was a local gunshop owner, I'd be more worried about the fact that shottists are a dying breed. People's tastes outgrow cheap guns, one-off Internet-sales incur big shipping and insurance costs, so the threat to the little guy isn't really the competition. Anyway, Wal*Mart's gun section is a joke compared to even the smallest hole-in-the-wall shop.
Here's a list of things that they won't do:
* Staff the counter with a person who knows which end the bullet comes out of (I love being swept by the muzzle of a shotgun!)
* Accept a return, and test a supposedly defective weapon
* Transfer weapons from other FFL dealers
* Sell handguns
* Stock more than one loading of any particular caliber of ammo
* Stock more than 4 calibers of handgun ammo or rifle ammo
* Stock any type of shotshell loading besides clay-breakers
* Trade, buy, or sell used firearms
* Stock even the most basic reloading supplies
* Stock a full compliment of cleaning supplies (no copper remover, lead remover, lead removal kits, different caliber patches, single-piece rods, etc etc)
* Stock a full compliment of hunting gear. My local shops have tons of calls, scents, lures, clothing, and hardware
* Stock mil-surp guns or ammo
* Stock holsters
* Stock archery supplies
* Stock video and books on shooting and reloading
* Stock more than basic fishing gear
* Stock accessories like extra stocks, grips, recoil pads, slings, or chamber gauges
* Stock gun safes larger than a breadbox
* Stock more than one kind and caliber of lead airgun pellets
* Stock any "blackpowder" guns or supplies. Occasionally I'll see solvent in the cleaning section, but that's about it.
Even in light of this, Wal*Marts prices aren't all that great. I can get everything but the guns for cheaper elsewhere. But then again, the little guy beats Wal*Mart again, because he can sell me a perfectly good used rifle for far cheaper than a new one. If, for example, I'm looking for .357 ammo, I'd have to go with garbage 110 grain loads at $15/50. Why would I want to be gouged like that, when my local gun shop has 158 grain loads in bags of 100 for the same price?
I really don't have any animosity toward Wal*Mart, I swear. I like Wal*Mart, and I shop there. But it's pretty obvious to me that their sporting goods section exists to draw the 'outdoorsy male with working testicles' market segment into stores to buy other incidental items, not to actually provide a sportman's one-stop center for supplies.
EDIT: YMMV, this is based on my local Wallyworld stores.