I haven't set foot in a Walmart in years and policies like this make it unlikely that I would ever shop in their stores. Unfortunately in cases like this the sexually repressed supporters of policies like this, who are usually in the minority, are usually more vocal than the opponents.
I have a friend who manages a convience store in a well known international chain. A couple of customers called head office with complaints about some mens magazines, ie Maxim, Stuff, etc. The magazine was pulled temporarily to appease these people. At the store level there was lots of complaints that the mags were pulled but these people weren't calling head office to express their opinions. Fortunately in this case the desire for profits won out as people at head office realized that magazines sales took a significant dip.
It seems that all too often the vocal minority is able to impose their repressive values on the silent majority.