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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 , Macy’s, Inc. , Nordstrom, Inc. and Dillard’s, Inc. , 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. , 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
    3. Kohl’s
    4. Dillard’s
    5. Macy’s
    6. Sears Holdings Corp

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.”