Big box, lower cost

A U.S. Department of Agriculture study looks at the impact of nontraditional retailers like Wal-Mart, Costco and Target on the way the Consumer Price Index is calculated. The USDA says the share of sales going to traditional retailers fell from 82% in 1998 to 69% in 2003. The study noted that dairy prices at the big box stores were 5% to 25% lower than at conventional supermarkets. Because the CPI has not kept up with the changing ratio of sales in big box stores, the gains in the CPI may be overstated. In other big box news, Wal-Mart reported positive sales growth in December.