• CNBC's Jim Cramer on Monday reviewed retail earnings so far and offered predictions for the rest of the season, saying companies need to offer bargains to consumers who feel the weight of inflation.
• "I think retail's still the ugly duckling versus travel and leisure," he said. "People don't want to spend money on physical items unless they have to, but even then, they're going to be more frugal, even if means getting a lower-quality hamburger or latte."

CNBC's Jim Cramer on Monday reviewed retail earnings so far and offered predictions for the rest of the season, saying that companies need to offer bargains to consumers who feel the weight of inflation.

"I think retail's still the ugly duckling versus travel and leisure," he said. "People don't want to spend money on physical items unless they have to, but even then, they're going to be more frugal, even if means getting a lower-quality hamburger or latte."

To Cramer, McDonald's earnings disappointed last week, citing how expensive their offerings have become. He said consumers no longer consider the burger chain to have bargain prices, something the fast-food chain could be reluctant to admit. Cramer also said Starbucks coffee may be too expensive, adding he's disappointed management doesn't seem to be talking about rolling back prices.

Cramer wondered how the market will react to stocks like Target, Macy's or Nordstrom. He said Target has brands that usually offer great value, suggesting the stock may be viewed as enough of a bargain to interest investors.

Cramer also discussed how Dollar General and Dollar Tree might shape up against sector giants Walmart and Costco. He said he thinks the latter two are likely to do well, as their signature brands offer solid bargains. Costco and Walmart's member programs may be cheaper if consumers can afford the upfront fee, but added that the dollar stores' value can match or exceed them when it comes to lower prices for individual items.

"The big retailers haven't reported yet, but the smaller ones have already taught us an important lesson: If you're trying to get away with maintaining high prices here, you're going to lose customers," he said.

Walmart and Target declined to comment. McDonald's, Starbucks, Target, Dollar General, Dollar Tree and Costco did not immediately respond to requests for comment.

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