Analyst Explains How Retailers Can Cash In On Amazon's Prime Day

There's little doubt that Amazon.com, Inc. AMZN's third annual Prime Day event is taking away sales from traditional brick and mortar retailers. However, struggling retailers aren't down and out and there's a path for them to fight back and regain market share, Jefferies' Randy Konik explained on CNBC Tuesday.

At the end of the day, Amazon is offering similar products to what's sold in stores but is able to do so in a convenient fashion, including two-day shipping and in some cases same-day delivery, Konik noted. To counter this, retailers need to re-focus on their brand, close stores and offer free shipping to better compete against Amazon.

Nevertheless, investors need to be selective in which stocks they pick and should focus on companies that can segment products across both the internet and in stores and operate a pristine distribution strategy.

One name Konik likes is Tiffany & Co. TIF, as many consumers won't buy a $20,000 piece of jewelry online and have it delivered to them

Meanwhile, Konik doesn't doubt a recent report by Consumer Intelligence Research Partners which suggests Amazon's total U.S. Prime membership base stands at 85 million.

Finally, the analyst suggested investors can sound the alarm concerning the doom and gloom nature of the entire retail industry when private equity investors aren't buying companies. This isn't the case as most recently Sycamore Partners bought the office supply retailer Staples, Inc. SPLS for $6.9 billion.

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