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Changing consumer generations is a boon to these retailers



CNBC's Jim Cramer stated that the US consumer is thriving and that retailers can do their business if they have two things for themselves: a strong digital presence or an off-price pricing format.

Stores that can't offer a good online shopping experience or sell discounted items are either "doomed" or "stuck in a slow downturn like Macy's," the Crazy Money host says.

Online sales in the US surpassed store sales for the first time in February, according to the US Department of Commerce.

"These days, the consumer is addicted to convenience," he said. "If you don't have a large digital presence or incredible deals, take a pass."

There is a generation in how baby boomers and millennials shop ̵

1; younger patrons are less likely to shop at the store than their elders, Kramer notes. , Five retailers are beating their competitors for having the right internet presence, offering low prices or both, he said, citing his new contraction of scale retailers called WATCH – Walmart, Amazon, Target, Costco and Home Depot .

Kramer said that Walmart, Amazon and Target have the resources to make the right investments in shipping and logistics.

"It costs a fortune to build a working, thriving e-commerce business," he said. "What really separates these companies from the rest of the retail industry is that they can afford to spend like crazy. The purpose may not be to compete directly with Amazon or Walmart, but it was very clever with the acquisition of Shipt … it's the ultimate same-day delivery service. "

Target spent $ 550 million on Shipt and launched the service in 47 states in June.

Etsy, Shopify and Wix are other companies that Cramer has admitted to changing the way people shop.

Walmart, "He also knows how to get older customers to shop. Teh also uses its low prices and uses its stores as distribution centers to compete with Amazon. Costco, a warehouse club chain, also has an advantage in offering its products in bulk at low prices to its more than 90 million members, continued t

Cramer also emphasized that discount merchants like Dollar Tree, Ross Stores, Burlington, etc. TJX companies that own TJ Maxx also work in this market environment.

"I like these most names right now for all the reasons that I hate the rest of brick and mortar. Price chains like TJX are the beneficiaries of all the excess inventory there, "he explained." When department stores have too many goods, they sell them to those companies at a fraction of the cost. "

Home Depot offers a combination of good prices and customer service to satisfy both individual consumers and counterparties.

The home improvement chain takes precedence over its main rival in Lowe's. "It's the only thing people are willing to buy with joy in person: incredibly cheap things, "he says. [19659015] SEE: Kramer Explains Which Retailers Make Profit From Changing Consumer Tastes

Disclosure: Kramer's Charitable Trust Owns Shares in Amazon, Burlington and Home Depot.

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