Target, the US discount retailer, yesterday underlined how far it has slipped behind its larger rival Wal-Mart in the recessionary economy, which has fuelled its fierce proxy battle over board seats with Bill Ackman, the activist investor.

The retailer said comparable sales at its 1,700 US stores fell by 3.7 per cent during the first quarter, compared with the 3.6 per cent increase reported by Wal-Mart's 3,600 US stores last week.