Macy’s is closing stores. So are J. C. Penney, Family Dollar, Payless ShoeSource, Victoria’s Secret and Gap. On the flip side, Walmart and Target just reported their best sales growth in more than a decade.

America’s retail industry is divided. As earnings season continues, it is becoming clear just how divided.

On one side are the companies that have worked out online strategies to compete with Amazon, while also finding the right mix of products and services, like selling groceries, to keep shoppers coming into their stores.

Amazon is still by far the leader in e-commerce, but Walmart, Target and Best Buy especially are increasingly challenging its dominance in online sales. They are using their physical stores to fulfill online orders — catering to shoppers’ demands for instant gratification — and increasing their digital promotions.

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