NEW YORK (TheStreet) -- Amazon.com (AMZN) - Get Report will overtake Macy's (M) in apparel sales in 2017, as a result of a "retail revolution," Cowen & Co. Senior Analyst Oliver Chen said on CNBC's "Power Lunch" on Wednesday afternoon.

"Amazon's getting so much traffic that what's happening here is the mall traffic is declining and consumers are basically skipping the trip," he explained. 

Stores are experiencing a "lot of problems" right now that are solvable, Chen said. 

But two positives for stores revealed in the firm's survey are that consumers don't enjoy browsing on Amazon.com and that they still like to shop.

"So there's a lot of controversy, a lot of interesting things on the horizon. And it's up to retailers and brick and mortars to really respond in this situation as well," Chen added. 

Consumers tend to go to physical stores to look for "trend-setting" items and to Amazon.com for "lesser known brands" and "replenishable items," he said. 

"So there's a big story here as brands evolve and curation matters," Chen concluded. 

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Shares of Amazon.com and Macy's were lower in late afternoon trading on Wednesday. 

(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with afree trial.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Amazon.com as a Buy with a ratings score of B-. COM INC (AMZN) a BUY. This is driven by multiple strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.

You can view the full analysis from the report here: AMZN

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