While it is a vicious competitor, Cramer thinks people will still go to the store. The space is transforming quickly.
Retail has been under pressure for a variety of reasons. Personal income is up 0.4 percent, while spending is up almost half of that. The consumer has been trading down, even though usually at this point in the cycle it would be trading up and spending more money because of robust hiring. Last week garnered the lowest amount of jobless claims in 40 years.
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The key demographic of shoppers is millennials, who have demonstrated that they are not traditional shoppers.
Cramer noted the pattern that while millennials will not spend on themselves, they will pay up for a cellphone and use services like Uber.
"Those cellphones are their own personal mall and we know from Facebook and from Amazon it is where they do their shopping. That eliminates the impulse buying that comes when you go to the store itself," Cramer said.
Fantastic quarters from both Expedia and LinkedIn were further evidence that the internet food chain is running strong. And while Cramer doesn't expect the success of these companies to dwindle, he does think it is overboard.
"I see an overreaction occurring right now, where all retailers are getting clipped and I think that is excessive," Cramer said.
Give it a few days, he added, and remember that retail will not be totally abolished by Amazon. Be ready to buy shares in retailers when they become oversold. It could take time, but retail is changing fast and brick and mortar is not going away.