'As an investor, you need recognize which businesses can scale because those are the ones that win,' Jim Cramer says.
"One of the biggest ... benefits of scaling is that it keeps your suppliers in check and that keeps your gross margins up and makes it so that we like your stock more," he said. "That's the main reason I've created a brand new acronym for the very few retailers that have enough scale to [have] control over their costs and therefore their destiny."Cramer said big-box retailer Walmart was on the verge of falling into the same fate of Sears.
"Best of all, Walmart can negotiate prices with any supplier it wants because they can't afford not to sell into Walmart's channel," he said. "That's really bad for their supply chain, but ... is it ever great for their shareholders."Amazon was able to cross the $1 trillion market cap line again during Thursday's session and Cramer attributes that growth to the company's ability to scale.
He acknowledged it could be said that Target, serving about 30 million customers a week, is too small to make the WATCH list.
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