The online retail giant is the reason so many other stores are cutting prices and offering free shipping. Nordstrom was the latest to join the bandwagon, offering no-cost delivery for the holidays.
Although inventories are low, Cramer said, high-end retailers don’t want to get caught with any extra merchandise at all. That, along with competition from Amazon, is driving a lot of sales and discounts.
“I think that retail is not as depressed as we’d like to think,” Cramer said, because of those low inventory levels. “But I am surprised about the bargains.”
Sure, suppliers of apparel and other wares are probably “thrilled,” Cramer said, to have a new customer-friendly distribution channel in Nordstrom, but Amazon’s “game changer” of a shipping business poses a big threat to most of the industry.
“These bricks-and-mortar retailers are living in fear,” Cramer said of Amazon’s reach and power, “that they are about to have another leg down.”
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