Malls to become ghost towns, Jim Cramer says

Cramer: Malls to become ghost towns

Malls are likely to become "ghost towns" as more consumers shift to online alternatives, CNBC's Jim Cramer said on Friday.

"When you see the prime J.C. Penny, Gap stores, L Brands ... and you say to yourself, 'Wow, what would happen if the mall just has blank space, blank space, blank space?" Cramer said on CNBC's "Squawk on the Street."

On Friday, J.C. Penny told investors that it would close between 130 and 140 of its stores over the next few months and shutter two distribution centers, the latest retailer facing closures as consumers switch to online shopping centers like Amazon.

J.C. Penney said it could save millions a year by closing the stores.

"We believe closing stores will allow us to adjust our business to effectively compete against the growing threat of online retailers," J.C. Penny CEO Marvin Ellison said in a statement.

Separately, last week, retail industry chief executives met with President Donald Trump to push back against a proposal from congressional Republicans that would raise taxes on imports, a so-called border tax.

The border tax is among sweeping changes proposed by the Republican-controlled House of Representatives.

—CNBC's Krystina Gustafson contributed to this report.