I am looking at Target's recent earnings release which can be found at the following URL:Earnings Release.
On page five it show two types of revenue: sales and other revenue. What does other revenue represent?
Are you asking "What specifically does Target mean by Other Revenue" or are you asking "What might a company like Target mean by Other Revenue"? Given that Other Revenue appears to be only 1.5% of Sales, it is unlikely that Target provides a specific breakdown of the types of other revenue they might receive. Typically, companies would provide more detail in annual reports than in quarterly reports. So if you go back to the 2021 annual report and go to page 11, there is this paragraph
We also sell merchandise through periodic exclusive design and creative partnerships, and shop-in-shop experiences, with partners such as Apple, Disney, Levi's, and Ulta Beauty, and generate revenue from in-store amenities such as Target Café, Starbucks, and Target Optical. CVS Pharmacy, Inc. (CVS) operates pharmacies and clinics in our stores under a perpetual operating agreement from which we generate annual occupancy income.
At least some of their Other Revenue comes from CVS leasing space in Target stores for pharmacies and clinics. Realistically, they're also getting revenue from these other partnerships. In any given quarter, they might recognize revenue from other random sources-- selling land they had purchased, gains on currency hedging transactions, etc.
It means revenue from other business activities that aren't substantial enough to warrant their own line items.
Target's latest 10-K provides some detail about what is included:
Other – Includes advertising, Shipt membership and service revenues, commissions earned on third-party sales through Target.com, rental income, and other miscellaneous revenues.
Generally, companies talk a lot about their mainline revenue sources, i.e. revenue that derives from the business they are trying to be in.
However, you get incidental revenue from every darn thing. Say you buy a parcel of land for a future distribution center, and the land has a USDA conservation easement (in which USDA pays you a small amount not to farm it). But, the plans do not pan out that year. You take the USDA income with a smile, it is 0.002% of your total revenue.
But now, you are writing your annual report to stockholders in which you describe your revenue in a limited number of words. Are you going to take 3 paragraphs explaining what the USDA program is, which properties benefit from it, state the pittance it earns, and then open the can of worms of why you own farmland and why the distribution center is not being built? Absolutely not in a general report.
Other random income sources are things like easements, sublets (buying a strip mall to get the anchor store location, or CVS at Target), tax abatements or tax credits (say that rooftop solar system you installed in the San Bernadino location), etc.
It's just the random effluvia of being in business, and it isn't worth wasting the stockholders' time to break it all out. Of course if someone asks, you'll give them chapter and verse.