Cramer Shares His Concerns About Retail, And He Has A Lot To Say

Jim Cramer talked recently about the “pulverization of retail.” In a CNBC.com article, the animated financial market commentator talked about the abysmal performance of Kohl’s Corporation (NYSE: KSS), Macy’s, Inc. (NYSE: M), Nordstrom, Inc. (NYSE: JWN) and Dillard’s, Inc. (NYSE: DDS), which, as a group, have each lost about half of their value in the past year.

Cramer analyzed the sector based on each retailer’s ability to withstand the withering power of Amazon.com, Inc. (NASDAQ: AMZN), ranking them in four categories.

Sales

Based on sales, the companies Cramer examined ranked in the following order:

1. Nordstrom
2. J C Penney Company Inc (NYSE: JCP)
3. Kohl’s
4. Dillard’s
5. Macy’s
6. Sears Holdings Corp (NASDAQ: SHLD)

Survivability

On survivability, based on how badly earnings have declined:

1. J C Penney
2. Macy’s
3. Dillard’s
4. Kohl’s
5. Nordstrom
6. Sears

Balance Sheets

Next, Cramer looked at the group’s balance sheets:

1. Dillard’s
2. Nordstom
3. Macy’s
4. Kohl’s
5. J C Penney
6. Sears

Strategic Flexibility

And finally, he reviewed each company for its strategic flexibility and ability to resist Amazon. His rankings were:

1. Nordstrom
2. J C Penney
3. Kohl’s
4. Macy’s
5. Dillard’s
6. Sears

Taken collectively, Cramer summed up the subjects of his examination by saying “From a pure survivability perspective, Nordstrom is the safest, followed by J C Penney, then Dillard’s and Kohl’s tied for fourth and the awful Sears Holdings coming in dead last.”