Q: Why is technology an issue?

A: Because retailers have been so late to the game. That's the underlying story at Saks [SKS]. They have invested a lot in technology. So has J.C. Penney [JCP], which has spent a lot of time on cycle-time reduction. And there's Home Depot, which is upgrading its technology. That's the common thread in terms of the retailers we have Buys on. Consistent with this theme, Nordstrom [JWN] did a major technology implementation in 2004, and now they have some of the best inventory turns in my coverage universe.

The industrials, transports, retailers, minerals and oils were “the severe-disease plays,” Cramer said. No one thought they would recover, and bankruptcy, it seemed, was a foregone conclusion. Not anymore, though. As the economy improves, so, too, will the US Steels (X), Nordstroms (JWN) and Dow Chemicals (DOW) of the world. These companies “are no longer in critical condition,” and Cramer predicted “a full recovery” as they rebuild their balance sheets.

"TGT has lagged the other names in the group: Kohl's (KSS) is up 28%, Macy's (M) is up 21%, JC Penney (JCP) has climbed 48% and Nordstrom (JWN) has rallied an astounding 56%." "Retail Is a Microcosm of the Broad Market," 6-15-09

"Of course, that means it was all the expectations game. The other guys had taken down expectations to the point that their horrid numbers looked good, especially Nordstrom's (JWN), but Kohl's (KSS) and J.C. Penney (JCP) weren't so hot either. Abercrombie's (ANF) were terrible, the worst I have seen, but you could never lower them enough!" ("Retail = No Sale," 4-9-09)

Cramer: 50% Retracement: Jim Cramer sees a 50% pullback, but still thinks that the overbought levels were a positive long term sign. Real Money TV viewers get Cramer's videos first and commercial free!
Click here to watch the video.

People are not shopping at Target (TGT) or Macy's (M) or Nordtrom (JWN), they are going to Wal-Mart. Why not? Wal-Mart's got them all beat on price and even on look and feel since the revolution Lee Scott put in place before he retired.

PE: 5 PEG: 0.61

Then I fret that who the heck is going to lend the retailers money to hold down inventory for Christmas, and I see the prices of Liz Claiborne (LIZ) and Talbot's (TLB) and Ann Taylor (ANN) and Nordstrom (JWN) and J.C. Penney (JCP) and Abercrombie & Fitch (ANF) and Sears (SHLD) -- oh man, Sears -- and I think that these are all better than any of the newly private companies like Neiman Marcus, and I know bankruptcies are around the corner.

Q: How will the so-called mall anchors emerge from this crisis?

Exstein: Nordstrom (JWN) emerges from this, as does Kohl's (KSS). Macy's (M) will emerge from this and, in all likelihood, so will J.C. Penney (JCP), but it is not clear in what manner the other players come out of this period.

Four that I watch and think are 2, 3, maybe 4 or 5 points too high are Ralph Lauren (RL), Nordstrom (JWN), Phillips-Van Heusen (PVH) and Gamestop (GME). I don't think any of these companies is doing that well. The discretionary buying is terrible. I think the expensive hardware will not be selling at GME, and that one -- even as low as it is -- can go lower.

weak consumer

can't seem to follow a rally. No market support.

abysmal

earnings disaster

too high fashion

Too high for too long. I expect it will come back to low 40's in 1st quarter.