Sept. 4 (Bloomberg) -- Wal-Mart Stores Inc. said sales increased 3 percent in August, beating its forecast after price cuts on groceries, back-to-school supplies and consumer electronics drew shoppers.

Wal-Mart, the world's largest retailer, had expected sales at U.S. stores open at least a year to advance 1 percent to 2 percent. Same-store sales in September may rise 2 percent to 3 percent, the Bentonville, Arkansas-based company said today in a PR Newswire statement.

Discounting of Kellogg Co.'s Eggo waffles, computer flash drives and flat-panel televisions from Sanyo Electric Co. spurred demand last month. Wal-Mart also improved displays of home furnishings and sold medicines for $4, providing a lift as spending of U.S. tax-rebate checks waned.

``They're going to keep customers coming back,'' David Katz, chief investment officer at Matrix Asset Advisors Inc., said in an Aug. 25 interview. The New York-based firm manages $1.4 billion, including 890,190 Wal-Mart shares through June.

To contact the reporter on this story: Chris Burritt in Greensboro, North Carolina, at cburritt@bloomberg.net.

Last Updated: September 4, 2008 07:06 EDT