According to a new survey, the prices of products in the stores of US discounter Target Corp in Canada are just 0.2 per cent higher than that in Wal-Mart stores in the country.

The survey conducted by Boston-based consultancy Kantar Retail showed that Target's grocery prices were 8.6 per cent higher than those at Wal-Mart. On the other hand, the prices of non-food or household goods were 3.3 per cent lower than those at Wal-Mart and health and beauty products were 2.8 per cent cheaper in Target stores compared to Wal-Mart stores.

"The retailers' baskets were very competitive. We found that the price of Target Canada's overall basket was within 25 cents of Wal-Mart's," the study said.

The survey showed that a collection of 29 goods were priced at $124.02 at Wal-Mart and $124.23 at Target stores. The survey was conducted in March as Target opened its stores in Canada. The company is still testing the market conditions in Canada in order to determine what works in the country and what serves the customer best. The company's plans to launch 24 stores across different parts of Canada within March