Wal-Mart drops prices on more than 16,000 products

NEW YORK (Reuters) - Wal-Mart Stores Inc. (WMT.N) said on Monday 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 U.S. stores, which last year posted their smallest same-store sales gain since the retailer began reporting such figures in 1980.

The Bentonville, Arkansas-based retailer has blamed numerous factors for the sluggish results, including merchandising missteps and a remodeling program that disrupted shoppers.

To add to the mix, CEO Lee Scott said earlier this year that rising gasoline prices, which tend to pressure its base of low-income shoppers, could mean a challenging year. Wal-Mart said earlier this month that, according to its latest survey, gasoline prices are shoppers' chief concern.

"We'll continue to be more aggressive on pricing and already are working with key suppliers on upcoming plans for fall and holiday," said Bill Simon, chief operating officer of Wal-Mart's U.S. stores, in a statement.

Wal-Mart said it will introduce new price changes week by week, and will focus on top brands.

(Reporting by Nicole Maestri; additional reporting by Sarah Coffey)