CNBC's Jim Cramer said Monday that the American consumer is thriving and that dealers can get court for their business if they have two things to do: a strong digital presence or a low price format.
Stores that cannot offer a good online shopping experience or sell discounted goods are either "doomed" or "stuck in a slow decline, like Macy's," the host said, "Mad Money."
Online sales in the United States surpassed store sales for the first time in history last February, according to the US Department of Commerce.
"These days, the consumer relies on convenience," he said. "If it doesn't have a great digital presence or incredible bargains, take a pass."
There is a generational divide in how baby boomers and millennials act ̵
Cramer said that Walmart, Amazon and Target had the resources to make the right investments in delivery and logistics.
"It costs a fortune to build a functioning, thriving online business," he said. "What really sets these companies apart from the rest of the retail industry is that they can afford to go crazy. Target may not have the right to compete directly with Amazon or Walmart, but it was very smart with the acquisition of Shipt … which is the ultimate delivery of the same day. "
Target spent $ 550 million on Shipt and rolled out the service in 47 states in June.
Etsy, Shopify and Wix are other companies that Cramer recognized that change the way people act.
Walmart, he said, knows how to bring older consumers to the grocery store. The Teh company also takes advantage of its low prices and uses its stores as distribution centers to compete with Amazon. Costco, the chain of warehouse clubs, also has an advantage in offering its products in bulk for low prices to more than 90 million members, he continued.
Cramer also emphasized that discount retailers such as Dollar Tree, Ross Stores, Burlington and TJX Companies, which own TJ Maxx, also work in this shopping environment.
"I like these names most right now for all the reasons I hate the rest of bricks and mortar. Off-price chains like TJX are the recipients of all the excess inventory out there," he explained. "When department stores have too much merchandise, they sell it to these companies for a fraction of the price."
Home Depot offers a combination of great prices and customer service to satisfy both individual consumers and entrepreneurs, and this is where the home improvement chain has an advantage over its main rival in Lowe, Cramer said.
"That's the one thing people are willing to buy personally: incredibly cheap stuff," he said.
SE: Cramer explains which retailers benefit from changing consumer tastes.
Disclosure: Cramer's charitable trust owns shares in Amazon, Burlington and Home Depot.
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