Retail is a bad business to be in with the rise of e-commerce giant Amazon, but Jim Cramer still has faith in some household names that could end up winners of the brick-and-mortar game.
Despite last week’s retail bounce, mall-based retailers have been struggling the most. Macy’s and JC Penney each have plans to shutter over 100 stores and gave weak 2017 guidance. Nordstrom’s revenues missed expectations. Same-store sales are declining across the board.
“If you want to find any real retail winners, you need to look outside the box and outside the mall,” the “Mad Money” host said.
First, Cramer turned to Kohl’s, a discount retailer with more locations in strip malls and outlet centers than traditional malls.
Watch the full segment here:
While its same-store sales have slumped and 2017 guidance is subpar, like the rest of the category, Cramer said the department store chain has a geographic advantage.
“The fact that Kohl’s isn’t dependent on the mall — instead, the stores are generally located in the kind of retail hubs that can still generate traffic — that’s a giant positive,” he said.
Cramer added that the company started a $2 billion share-buyback program last November, a major plus considering its $6.9 billion market cap and over 172 million outstanding shares.
Kohl’s has also been keeping its inventories lean, and is beginning to see its multi-billion-dollar digital technology investments pay off. Cramer lauded its move to start selling