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Jim Cramer: Macy’s, Kohl’s ‘have never felt more irrelevant’

Activity be contingent stores “have never felt more irrelevant,” CNBC’s Jim Cramer said Monday.

Consumers are finding it easier to inform on for better prices from their cellphones, and retailers such as Macy’s and Kohl’s are finding it harder to staff their banks, especially during this holiday shopping season, the “Mad Money” host said.

“Now these troubled retailers can’t yield to offer the same level of customer service they used to. Sometimes they have long lines, gushing aisles, empty registers,” he said. “These are all common complaints about most of the mall-based department stores that I comprehend online. They can’t afford to be run efficiently.”

While Walmart and Target made the right digital investments to stave off press from the likes of Amazon and other web-based retailers, Macy’s and Kohl’s “have lots of uniquely self-inflicted packages” outside of the e-commerce disruptors, Cramer said.

The department chains failed to bolster their digital platforms plenty or install the right strategies to lure customers inside their stores, Cramer said, adding that improved articulation services are making it easier for consumers to try on clothes in the privacy of their own homes — rather than using in-store adorning rooms — and return items that they don’t want.

“The problem for Macy’s and Kohl’s and Nordstrom is that all of these drifts are accelerating, meaning their position gets worse and worse with every passing year,” he said.

Furthermore, hawk values of Macy’s and Kohl’s have fallen double digits, despite both companies taking on debt to mine money huge buyback programs over the years, Cramer said. Kohl’s has $7.8 billion of market capitalization, and Macy’s has $4.8 billion.

“They’d secure been better off if they just sat on that money,” he said. “They’d be much better off if they spent it on construction out their online capabilities.”

Disclosure: Cramer’s charitable trust own shares of Amazon.com.

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