Oct. 11 (Bloomberg) -- Wal-Mart Stores Inc., the world's largest retailer, said September sales climbed 1.4 percent as customers pinched by higher bills visited its stores less for discounted goods.

The sales were within the company's forecast of 1 percent to 3 percent at locations open at least a year. Same-store sales may increase as much as 2 percent this month, the Bentonville, Arkansas-based company said today in a statement.

Wal-Mart cut toy prices two weeks earlier than last year to lure customers facing higher fuel, home and food costs. Retailers including Bed Bath & Beyond Inc. and Target Corp. have lowered earnings and sales forecasts as consumers pull back. Shoppers seeking bargains on basics may head to Wal-Mart, said David Abella, a Rochdale Investment Management LLC analyst.

``People still have to live their lives,'' Abella said in an Oct. 9 interview. ``It's not like somebody forecloses on their house, and then they just decide they're not going to eat that month.'' The New York-based analyst helps manage $2.5 billion in assets, including Wal-Mart shares.

Wal-Mart, the biggest seller of groceries in the U.S., rose 38 cents to $45.59 yesterday in New York Stock Exchange composite trading. The shares fell 1.3 percent this year before today.

Sam's, Costco Sales

Comparable sales at Wal-Mart stores and supercenters, which contain the same items as a regular grocery store as well as household goods, rose 0.8 percent. The Sam's Club warehouse division increased 4.1 percent, compared with a 4 percent gain at domestic stores operated by Costco Wholesale Corp., the largest U.S. warehouse chain by sales. Both the Sam's and Costco data include fuel sales.

Wal-Mart reemphasized its original message that it's the cheapest destination for basics. In July, the retailer cut prices on 16,000 items for the back-to-school season.

``There's probably overall a little bit of a belt tightening across the country and that, coupled with Wal-Mart's aggressive price cutting, will probably hold their market share or maybe even increase their market share,'' Abella said.

Target Corp. on Sept. 24 cut its September same-store sales forecast by more than half to a gain of 2.5 percent at most, after customer visits declined. The second-largest discount chain initially projected an increase of as much as 6 percent.

Most retailers including Target will report September same-store sales later today.

To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net.

Last Updated: October 11, 2007 07:31 EDT