Retail stocks have slumped this year.

While many chalk up the declines to competition from online retail behemoth Amazon (AMZN - Get Report) , famed market expert Peter Schiff, CEO of Euro Pacific Capital, doesn't agree.

"Amazon has been here for a long time - this is the worst year for retail - it's worse than 2008 and 2009," he said. "This is because consumers are broke - they have lousy jobs, they're loaded up with debt and they can't afford to buy stuff."

He pointed to Foot Locker's (FL - Get Report) 25% decline on Friday.

Schiff isn't comforted by the double-digit gains in earnings growth for the past two quarters in U.S. stocks.

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