The problem with retail isn't that people aren't spending, it is where the money is being spent, Jim Cramer said.
When Cramer listened to the conference call of Macy's this week, and it seemed to him that Macy's wasn't acknowledging the real elephant in the room — Amazon. Instead of recognizing that it had a real problem on its hands, it said that the problem had to do with a stronger dollar impacting tourist traffic.
"In many ways, the decline of Macy's, as well as the pulverization of the stock of discount chain Kohl's after a terrible quarter and guidance today, is like what happened to the newspaper industry and the book store space," the "Mad Money" host said.
Both Macy's and Kohl's saw the internet coming, Cramer explained, but assumed it wouldn't impact them because they thought they were something special. Then they thought they could beat the web by joining it.
Ultimately, they were beaten by it.
"The problem is the web, especially Amazon, and until they face up to that fact, they are going to be in trouble for a very long time," Cramer said.