Market analysts are turning sour on Target’s Canadian expansion, with one saying the retail chain appears to be facing a backlash from consumers disappointed with its prices, while another described the retailer's plans as “risky.”

After a strong opening for Target Canada, our checks suggest traffic has slowed below expectations in recent weeks, driven partly by Canadians’ perception that prices are too high, both relative to Walmart and Target’s U.S. locations,” Deutsche Bank retail analyst Paul Trussell wrote in a research note, as quoted at the Financial Post.

“While shoppers appreciate the higher quality assortment, especially in discretionary categories, the complaints on pricing were alarming.”

UBS analyst Jason DeRise warned this week that Target may be moving too quickly into Canada’s market and may not succeed in meeting its ambitious goals.

"Target will rapidly open its first 124 Canadian stores by year end. ... We think the expansion is risky as [Target] has little time to test its Canadian format,” DeRise wrote, as quoted at StreetInsider. He added he sees a “low probability” of Target meeting its sales goals in Canada.

Many early shoppers at Target’s new Canadian locations were disappointed to find prices on a similar scale to other discount retailers in Canada, and not on the scale of Target’s U.S. locations.

Target has defended its prices, saying it’s limited by the costs of doing business in Canada, and the president of the company’s Canadian division has suggested Canadians can always keep cross-border shopping at U.S. locations.

In a survey commissioned by the Globe and Mail, market research consultancy Kantar Retail found prices at Target Canada are 0.2 per cent higher, overall, than prices at Canadian Walmart locations.

Target’s American parent company has disappointed investors with its recent earnings reports. The company said Tuesday its profits for the first quarter will come in lower than expected, and sales will be flat.

Loading Slideshow...
  • How Target's Canadian Prices Stack Up To U.S. Prices

  • Women's Merona Emilia Espadrille Sandals

    C$29.99 in Toronto and US$29.99 on the U.S website.

  • Gilligan O'Malley Women's Knit Pajama

    C$24.99 in Canadian sstores and US$24.99 on the U.S. website.

  • Mossimo Women's Ponte Boyfriend Jacket

    C$39.99 in Toronto and US$29.99 on the U.S. website.

  • Bird-Bead-Wavy Disc Earrings Trio

    C$9.99 in Canadian stores and US$7.99 on the American website.

  • Mossimo Supply Co. Men's Short Sleeve Tee Shirt

    C$9.99 in-store and marked down from US$9.99 to $7.49 on the U.S. website.

  • Mossimo Supply Co. Men's Long Sleeve Poplin Workshirt

    C$24.99 in Target's Toronto store and marked down from US$22.99 to $17.24 on the U.S. website.

  • Ridel Vivant Pinot Noir Tumblers - Set of 2

    $C24.99 in Toronto but US$19.99 at Target.com.

  • Giada De Laurentiis 12' Non-Stick Frying Pan

    C$39.99 compared to US$35.49 (online price).

  • Soda Stream 60L CO2 Spare Carbonator

    C$34.99 in the Toronto store and US$29.99 on the American site.

  • Target Canada Opens Stores In Ontario

    Previously on HuffPost: Target Canada Opens Stores In Ontario

  • Target Opens In Canada

    A Canada flag flies on a customer's car parked in front of the new Target store in Guelph, Ont. on Tuesday March 5, 2013. Target's expansion into Canada is continuing in big way over the next two weeks as the American retailer opens 21 new stores in Ontario.

  • Target Opens In Canada

    Tony Fisher, President of Target Canada, speaks to the media during a tour of the new Target store in Guelph, Ontario. Target announced that it is opening three pilot stores in Guelph, Fergus and Milton, Ontario March 5, 2013, the first of 124 Target stores to open in Canada, Media were given a preview tour, Monday, March 4, 2013.

  • Target Opens In Canada

    Employees work on preparing the new Target store in Guelph, Ontario. Target announced that it is opening three pilot stores in Guelph, Fergus and Milton, Ontario March 5, 2013, the first of 124 Target stores to open in Canada, Media were given a preview tour, Monday, March 4, 2013.

  • Target Opens In Canada

    Employees welcome the first shoppers who lined up for the new Target store in in Guelph, Ont. on Tuesday March 5, 2013. The company is expected to open between 125 and 135 locations in Canada.

  • Target Opens In Canada

    Hundreds of shoppers wait for the opening of the new Target store in in Guelph, Ont. on Tuesday March 5, 2013. The company is expected to open between 125 and 135 locations in Canada.

  • Target Opens In Canada

    Tony Fisher, President of Target Canada, speaks to the media during a tour of the new Target store in Guelph, Ontario. Target announced that it is opening three pilot stores in Guelph, Fergus and Milton, Ontario March 5, 2013, the first of 124Target stores to open in Canada, Media were given a preview tour, Monday, March 4, 2013.

  • Target Opens In Canada

    Employees work on preparing the new Target store in Guelph, Ontario. Target announced that it is opening three pilot stores in Guelph, Fergus and Milton, Ontario March 5, 2013, the first of 124 Target stores to open in Canada, Media were given a preview tour, Monday, March 4, 2013.

  • Target Opens In Canada

    Employees work on preparing the new Target store in Guelph, Ontario. Target announced that it is opening three pilot stores in Guelph, Fergus and Milton, Ontario March 5, 2013, the first of 124 Target stores to open in Canada, Media were given a preview tour, Monday, March 4, 2013.

  • Target Opens In Canada

    Shopper Sam Skelhorn waits in a tent for the opening of the new Target store in in Guelph, Ont. on Tuesday March 5, 2013. The company is expected to open between 125 and 135 locations in Canada.

  • Target Opens In Canada

    Hundreds of shoppers wait for the opening of the new Target store in in Guelph, Ont. on Tuesday March 5, 2013. The company is expected to open between 125 and 135 locations in Canada.

  • Target Opens In Canada

    Employees welcome the first shoppers who lined up for the new Target store in in Guelph, Ont. on Tuesday March 5, 2013. The company is expected to open between 125 and 135 locations in Canada.

  • Target Opens In Canada

    Hundreds of shoppers wait for the opening of the new Target store in in Guelph, Ont. on Tuesday March 5, 2013. The company is expected to open between 125 and 135 locations in Canada.

  • Target Opens In Canada

    First customers Scott Lester (left) and Sam Skelhorn exit the new Target store with their purchases in Guelph, Ont. on Tuesday March 5, 2013. The company is expected to open between 125 and 135 locations in Canada.

  • U.S. Retailers Coming To Canada: Bloomingdale's

    The iconic American upscale retailer is in talks with Hudson's Bay Company to become a "store within a store" at HBC locations in Canada. The move is seen as an attempt by The Bay to fight off the possible arrival of Nordstrom's (see next slide).

  • U.S. Retailers Coming To Canada: Nordstrom

    One of the most prominent competitors to Bloomingdale's, Nordstrom announced in September, 2012, that it plans to open locations in Cadillac Fairview-owned malls in Calgary, Ottawa and Vancouver. The stores will open in former Sears locations.

  • U.S. Retailers Coming To Canada: Marshalls

    Discount retailer Marshalls entered the Canadian market in March, 2011, and recently announced an expansion of six new stores in Ontario. At least a dozen of its 750 stores are now located in Canada.

  • U.S. Retailers Coming To Canada: Lowe's

    The home improvement retailer began moving into the Canadian market in 2007, with a store in Hamilton, Ontario. It has since expanded to 31 locations in Ontario and Alberta.

  • U.S. Retailers Coming To Canada: J. Crew

    Ritzy fashion chain J. Crew opened its first Canadian location in the summer of 2011, and immediately ran into public anger about the U.S.-Canada price gap. Shoppers complained that J. Crew's Canadian prices were about 15 per cent higher than in the U.S.