When you can build a good quality AR for less than Wal-Mart's clearance price on their Colt's, why would you pay Wal-Mart's regular price? Or, when plenty of gun shops are selling complete, brand-new, AR's for less than Wal-Mart. The people who run Wal-Mart are smart business people. That's how Wal-Mart got to be as big as it is. They pride themselves on being the low price leader. If they can't maintain that position because of market conditions outside their control, they'll leave the market. That's all that happened here. It wasn't anything nefarious. It was free market capitalism at work.
Larry's Pistol and Pawn in Huntsville sells Diamondback AR's for about $5-600. That's significantly less than Wal-Mart's price for Colts or Windham Weaponry. Granted, most everybody here understands that there are significant differences between the brands. But, do you think the average Wal-Mart customer knows, or even cares? All Wal-Mart sees are brands of what they consider to be a homogeneous product being old for less than they can purchase the brands they stock. When other dealers can sell something cheaper than Wal-Mart can buy it, Wal-Mart isn't going to carry it. Now, they may have even looked into carrying the lower priced brands. My guess, though, would be that if they did so, they likely found that those brands (Diamondback, Doublestar, etc) couldn't produce enough to supply all of Wal-Mart's needs at a price Wal-mart was willing to pay.