Wal-Mart, the world's largest retailer announced last week that it is now selling choice-grade beef at all of its 3,800 U.S. locations after ramping up selections for the past three months. In keeping with its focus on low prices, Wal-Mart traditionally has sold only select-grade beef.
With over $130 billion in U.S. grocery sales, the new strategy has already had an impact on the choice-select spread. Choice beef has gotten more expensive, while select has become cheaper. The result is the price difference between the two grades of meat has exploded to 19 cents a pound from 3 cents a pound just a few months ago.
Choice and select ratings are placed on beef by federal inspectors on a voluntary basis. About 63% of meat graded for quality is classified as choice, while 29% is classified as select. The remainder is prime or one of several lower grades
With over $130 billion in U.S. grocery sales, the new strategy has already had an impact on the choice-select spread. Choice beef has gotten more expensive, while select has become cheaper. The result is the price difference between the two grades of meat has exploded to 19 cents a pound from 3 cents a pound just a few months ago.
Choice and select ratings are placed on beef by federal inspectors on a voluntary basis. About 63% of meat graded for quality is classified as choice, while 29% is classified as select. The remainder is prime or one of several lower grades
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