Reply #14: Wal-Mart in price-cutting mode [View All]

NEW YORK (CNNMoney.com) -- As Wal-Mart continues to struggle with soft sales amid a housing slowdown and gas price pressures, the retailer announced Monday that it will cut prices further on 16,000 items this week to spur sales for the back-to-school shopping season.

Wal-Mart (Charts, Fortune 500), the world's largest retailer, said in a statement that it hopes to save families with children 10 to 50 percent on school-related merchandise through its new discounts.

Wal-Mart said its plans are based on this year's report from the National Retail Federation, which says families on average will spend $563.49 on school-related purchases for their kids.

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Sales of Wal-Mart stores open at least a year, a key measure of retail performance known as same-store sales, continue to trail same-store sales growth at its main competitor Target (Charts, Fortune 500), the No. 2 discounter.

Although Target is in the same discount category as Wal-Mart, its sales haven't been hit as hard as Wal-Mart's in recent months because Target appeals to slightly higher-income shoppers whose disposable incomes are less affected by gas price swings.

http://money.cnn.com/2007/07/23/news/companies/walmart_pricecuts/index.htm?postversion=2007072308