CHICAGO — Wal-Mart Stores Inc. is stocking its refrigerator cases with higher-quality beef in a bid to boost food sales, sending strong ripples through the U.S. beef market.
The world's largest retailer confirmed last Monday 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. Wal-Mart traditionally has sold only select-grade beef, which is of a lower quality, keeping with its focus on low prices.
Because of Wal-Mart's unparalleled size — more than half of its $260 billion in U.S. sales last year came from groceries — its strategic shift is having a pronounced effect on the wholesale beef market.
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, helping to make the higher-quality beef more costly for all shoppers.
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