Target’s Frosty Canadian Welcome Weighs on Profit

Target Corp. is getting the cold shoulder in Canada.

The second-largest discount retailer in the U.S., which opened its first stores north of the border in March, posted third-quarter profit yesterday that trailed analysts’ estimates after the loss in its Canadian unit was wider than expected. Target is generating lower-than-projected sales there after failing to provide Canadians with the bargains they were expecting. Rivals also have cut prices to make Target’s entry difficult, and Canadians aren’t shopping at the stores for basics such as food and medicines like U.S. shoppers.