I see Walmart as being better positioned to gain market share than their prime rivals. The reason -- the advantage of extensive store presence and pricing, in combination with their successful transition to the omnichannel model. However, the "cost leadership business strategy" will have to be revised so as to make provisions for absorbing rising costs -- such as a hike in membership fees. The latest earnings numbers reflect Walmart's shift in strategy.

Of late, what we see is a struggle among traditional retailers like Kohl's and Walmart to keep pace with the likes of Amazon and gain a foothold in the online marketplace -- something that demands enormous investment and effort. It's going to be tough for the brick and mortar players until they manage a transition to the omnichannel mode. A look at the latest earnings numbers of Macy's -- especially in the run up to the holiday season -- will reveal what is in store for the sector.