Cramer's 'Mad Money' Recap: Reviving Retail

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A Fed rate cut and cold weather could rejuvenate some languishing retail stocks, Jim Cramer told viewers of his "Mad Money" TV show Monday.

Lower interest rates mean there will be more cash flowing around, making consumers feel richer, he explained, noting the current cold spell is already causing consumers to flock to stores to pick up winter wear.

Cramer said two stocks that will benefit from these catalysts are Ralph Lauren (RL Quote - Cramer on RL - Stock Picks) and Nordstrom (JWN Quote - Cramer on JWN - Stock Picks).

These two retailers, he said, tend to come back first because people who shop there aren't saddled with credit problems to restrict their spending.

Ralph Lauren and Nordstrom deserve to go higher because they command "strong brand-name recognition," have considerable buybacks going on and are "dirt cheap," he said.

That's not the case with Coach (COH Quote - Cramer on COH - Stock Picks), another classic high-end retailer, that recently lowered its guidance. Unlike Nordstrom and Ralph Lauren, Coach is mostly in the business of selling accessories. "It's clothing that's going to sell in this weather, not handbags."

Target: the Wal-Mart Killer

Target (TGT Quote - Cramer on TGT - Stock Picks) is the "gold standard of shopping" because of its variety and excitement, Cramer told viewers.

When people say Wal-Mart (WMT Quote - Cramer on WMT - Stock Picks) has slipped, what they're saying is that people would rather go across the street to [shop at] Target."

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