Retail stocks have been annihilated recently, despite the U.S. economy eking out growth. The fundamentals of the retail business look horrible: Sales are stagnating and profitability is getting worse with every passing quarter.

Jeff Bezos and Amazon.com AMZN, +0.85% get most of the blame for this, but the criticism is misplaced. Nowadays online sales represent just 8.5% of total retail sales. Amazon, at $80 billion in sales, accounts for just 1.5%of total U.S. retail sales, which at the end of 2016 were around $5.5 trillion.

Though it is human nature to look for the simplest explanation, in truth, the confluence of a half-dozen unrelated developments is responsible for weak retail sales.

Americans’ consumption needs and preferences have changed significantly. Ten years ago we spent a pittance on mobile phones. Today Apple AAPL, +0.89% sells roughly $100 billion worth of “i-goods” in the U.S., and about two-thirds of those sales are iPhones. Apple’s U.S. market share is about 44%, thus the total smart mobile-phone market in the U.S. is $150 billion a year. Add spending on smartphone accessories (cases, cables, screen protectors, etc.) and we are probably looking at $200 billion total spending annually on smartphones and accessories.

Ten years ago (before the introduction of the iPhone) smartphone sales were close to zero. Nokia was king of the dumb phones, with sales in the U.S. in 2006 of $4 billion. The total dumb cellphone handset market in the U.S. in 2006 was probably around $10 billion.

Consumer income has not changed much since 2006, which means that over the last 10 years $190 billion in consumer spending has been diverted toward mobile phones.

It gets more interesting. In 2006 a cellphone was a luxury only affordable by adults, but today 7-year-olds have iPhones. Not to bore you with too many data points, but Verizon Communications’s VZ, +1.01% wireless-generated revenue in 2006 was $38 billion. Fast-forward 10 years and it is $89 billion — a $51 billion increase. Verizon’s market share is about 30%, making the total spending increase on wireless services alone close to $150 billion.

Between smartphones and their services, $340 billion will not be spent on T-shirts and shoes.

Between smartphones and their services, $340 billion will not be spent…