Target Corporation TGT

The business

Target sells apparel, home goods, groceries, beauty and seasonal merchandise out of more than 2,000 stores, with roughly a fifth of sales originating digitally and fulfilled mostly from those same stores. The differentiator has always been owned brands and a shopping experience people choose rather than tolerate, which is why the company earns higher gross margins than a pure discounter and why it suffers more when discretionary spending turns.

Two newer businesses matter increasingly: Roundel, the advertising network that sells access to Target's shoppers, and Target Circle 360, the paid membership. Together with the marketplace they grew over 20% last quarter, though the company will not break out the pieces.