Jim Cramer reviews which retail stocks are working and which you should stay away from

"There's a market for high-end luxury goods and low-end mass market merchandise, but right now there's not much space in between," CNBC's Jim Cramer says.

Dollar General and Dollar Tree showed that they can manuever China tariffs without taking a blow to margins, the "Mad Money" host says. Stores such as Macy's, Kohl's and Nordstrom that are connected to the malls are "falling by the wayside," he says.said Thursday that retail earnings have revealed the middle part of the sector is "struggling."

"There's a market for high-end luxury goods and low-end mass market merchandise, but right now there's not much space in between," theDiving into the sector's quarterly results, presented over the past weeks, Cramer noted that the discount, high-end and online businesses have been working for investors. The companies closely connected to malls are seeing the most pain, he added.

While market watchers worried that companies would be challenged by U.S. trade tensions with China — where many retailers source their products for lower costs —

Imitation is the sincerest form of flattery. CollapseOfTheMiddle Physical retail isn't dead. Boring retail is.

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