Wal-Mart chalks up back-to-school sales

The back-to-school season has helped boost sales beyond expectations at Wal-Mart, the world's biggest retailer.

The Arkansas-based company expects to report its biggest monthly sales gain for 14 months, despite 200 stores being hit by the US power blackout a fortnight ago.

For the four weeks leading to August 29, year-on-year sales at stores that have been open for at least one year are expected to be up between 4 and 6 per cent, topping an earlier forecast of 3 to 5 per cent.

A spokesman said demand for back to school products had been stronger than anticipated, and that sales had also been boosted by the launch of Levi Strauss Signature jeans last month.

Wal-Mart's figures are keenly watched for clues about the wider economy.

The stores giant, which is also the world's biggest company, accounts for 8 per cent of retail sales in the US, excluding cars.