How low can Wal-Mart go with price-cut strategy?

SAN FRANCISCO: Wal-Mart Stores Inc is taking its ferocious price cutting into new markets as the economy shows hints of recovery.

In the past year, the discount behemoth has been more focused on markdowns for necessities such as food that drove sales in the downturn. But now its aggressive strategy is spreading rapidly to other goods being sold online as well as in the company's stores.

In the past month, Wal-Mart has started selling more than 100 toys for $10 each and rolled out nationally a wireless service priced well below competitors.