This isn't anything new with Walmart, and it's pretty obvious that's going to happen if one retailer becomes your main customer. Walmart isn't forcing anyone to sell through them, or even to have different product lines (one crappy one for Walmart, another for other retailers), or even different brands. Basically, if you want to sell stuff to Walmart buyers, this is what you need to agree to. If you want to be a higher-end company, then don't deal with Walmart.