I am a Kala dealer. For years. I would like to address this:
-Walmart is obviously trying to compete with on-line platforms such as Amazon. I have yet to see a Kala in-store at Walmart. They are just trying to make sure Amazon does not drive them out of business. Amazon is starting to do local pick-ups, same day delivery, and on-line grocery shopping even, so I think Walmart is having a "Two can play at this game" thing and from my Wal-mart ads I get on Facebook, they are selling all sorts of crazy stuff from independent stores. Many of these Walmart ads for ukuleles are from "Sam Ash Direct". The funny thing is, you probably order it from Walmart, that sends the notification to Sam Ash, who them sends a notification to Kala, who then drop ships your uke.
-Kala are good people, but also a big business. And as most big business do, they grow and innovate. And now they have grown where they are less of the small "Little Engine that Could" that we all cheered on as they started their ukulele business with a half a booth space at NAMM, and are now the big business that can actual pander to the mass markets! And so a brand that we knew and loved because we grew up with them, has suddenly turned into something that feels like "the man". And I get it. I have been on this roller coaster with them for about 8 years. And I have expressed my fair share of complaints, but then have been met with explanations. We can't now say, "We wanted you to be successful, but not THIS successful". It is not quite fair.
-If not Kala... then who? So... the thing is. Walmart is going to sell ukuleles. If they dont sell Kala, they will sell Lanikai, or Cordoba, or (the modern) Breedloves, or any other brand that is VERY big box friendly, and not very little guy friendly. So someone has to do it, so why not it be Kala who does not completely and utterly suck. So at least beginner ukers are getting an ok uke. That being said... as a setup artist, I know the issues these ukes have out of the box. And I may be $5 more than Walmart, but I will love on your uke for 45 minutes to an hour and sometimes more to make it meet my picky standards, so for the little more money you might as well not take the risk of an out of the box Kala and buy from the small ukulele dealers. But ukuleles are going to get into that Walmart market, so I would much rather it be Kala who is an ukulele focused business who does support the ukulele community through sponsorships, donated ukes, and artists.
-Now, Kala does sell direct too. Their prices are more than what dealers can sell them for, but if you sign up for their newsletter you get that mark-up off in an on-line coupon. Does it suck for dealers?... heck yeah it does. But at the same time... if someone is "in the know" they would know to buy from the smaller guys who will actually love on your uke a little before sending it to you! Do I lose business because of this? Yeah, probably... but in all honesty I would rather sell someone an Ohana anyway (smaller business, with a lot of heart, and a heck of a lot less issues coming out of the box, so less setup time for me.)
-Any business that Kala loses in this they will gain in mass quantities of sales. So I am sure they aren't crying in their coffee. At the same time, as I said, they may not even be the ones directly behind it. I can set up an Amazon account and drop-ship ukuleles until the cows come home and put the name Kala on it, but it does not mean it is direct. But at the same time... it could be... so yeah.
So to summarize. I really am not mad at it. Someone has to do it. It could be a crappier company. People who want a setup will still buy from me so it wont hurt my bottom line. My shop has 714 Ohanas, and 178 Kalas and some of that is cases. So it shows where my tonal preference lies. But there are people who are bent on wanting a very specific Kala model and I have thought about dropping them for awhile, but then the people who want a well-setup Kala need to have the choice to get a setup or not. And I am good at it and have offered them so long I know their quirks, so why not. So I offer the models I can stand behind. And with a fret level and action adjustment they are great ukes. So, at this point it is what it is. It won't hurt my business. If it causes me (who by comparison of most stores is a little guy), to sell more Ohanas, there will be much rejoicing because that makes my job A LOT easier! If the Walmart partnership bothers you, then better for me too, because I hope it will lead you to buying more ukuleles from the "little guys" who are a little more personal. But as for Kala, they do cater to the big guys, but rest assured they are kind to me as a "little guy" and have worked with me as well. They seem to have systems in place to accommodate both. I have a salesman there that I consider my friend, they do try to innovate with their instruments, they do care about people, and they do take care of their dealers. But if the bigger business thing bothers you, it would not hurt to seek out the smaller guys who are not large enough to cater to the big businesses, but who still produce a quality product that is worthy of your patronage.