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Cramer: Retail's too hit-or-miss right now

CNBC's Jim Cramer says investors may want to steer clear of retail stocks.

"Nothing is working the way it's supposed to in retail," Cramer said on "Squawk on the Street." "What happened to Kohl's? They were the hottest thing in the world and then they just disappeared. Wal-Mart [hit] a 52-week low yesterday. ... This group is very hard to [play]."

On the other hand, there are retailers such as Target that are outperforming following corporate concerns, Cramer added. "This was a company that we were worried about its credit rating not that long ago, and this company's [risen] very quickly."

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Cramer made his remarks a day after the company released a statement saying it would raise its quarterly dividend by 7.7 percent and expand its buyback program to $10 billion from $5 billion.

He also said the sector's unpredictability could be due to a number of factors, including the rising dollar and more activist and hedge fund intervention. The greenback was lower against a basket of currencies midmorning Wednesday.

Target shares were up midmorning.

Disclosure: Cramer's trust owned Target stock when this article was published.