This article is insane.
The cost of recyclables is so closely correlated to variable costs (like energy prices) that efforts to mandate or close loop recycling always fail over a long enough timeframe.
Also I suspect Walmart has no idea the extent to which recyclables are used in their products since about 70% of Walmart's products are produced in China, and China consumes the majority of US (and European) recyclables.
Want to increase recycling rates? Ban the use of alternative fuels and watch recyclable recovery rates skyrocket. This is an instance where the free market knows better than policy makers.