Yeah, of all the stuff they sell generating another $9 in the process of selling something controversial is probably juice that is not worth the squeeze. The beer and smokes bring a lot more volume and profit. If they were really selling a lot of 9mm ammo it wouldn't be on a tiny locked shelf in the back of the store, it would be on the endcap next to the Snickers and National Enquirer.
ETA: While I know this impacts others in other areas and situations more, but retail is plenty challenged by mail order right now anyway, conceding the guns and ammo category is probably an easy decision.