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Is it legal for big-box stores to only sell phones on contract?

I recently went into of big box retailers looking to but a galaxy s4. I don't have a contract and don't want one. the associates here are saying they can only sell this phone with a contract. I'm ready to pay full price, they don't seem to want anything to do with me unless I take a contract. Is this illegal? can a retailer decide they will only sell a phone with contacts?

    Some carriers also do this, only sell on contract with no available option to buy the phone outright. This is because they earn more money getting you to sign a contract rather than selling the phone at full price.

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