Wal-Mart forced to drop prices

US mega-retailer Wal-Mart said today it will drop prices this week on more than 16,000 products across its stores as the world's largest retailer tries to reinvigorate sales for the back-to-school shopping season.

Wal-Mart also said it is launching a new advertising campaign this week that moves away from its yellow "smiley-face" character and instead shows actors talking about why they turn to Wal-Mart for low prices.

The price cuts and new ad campaign come as Wal-Mart is working to revive sales at its US stores, which last year posted their smallest same-store sales gain since the retailer began reporting such figures in 1980.

- REUTERS