As a manager at BouClair, I am also very disappointed with the change in the company's product. I started working there in high school because I loved the idea of working in a fabric store, and it was great, but over the past few years they have begun to change direction.
The employee you spoke to had the right idea, but wasn't completely correct. It's not that the fabric and craft stuff doesn't make a profit, it's that the home dec product makes MORE of a profit. On an average day, 75% of my store's sales come from home dec, 20% comes from blinds and rods, and only about 5% from fabric. Most of the stores will continue to sell drapery fabric and some notions, but the new stores being opened will not even have that.
It makes me sad, and it's hard when sewers come in and are upset about the change. The employee in me has to justify it, but the sewer in me is also upset about it.
The good thing for me though is that I buy clearance readymade curtains and stuff to use as fabric for real cheap. Sometimes you just have to adapt! But it's still not that same...