The retail space has presented a confusing view of consumer health this earnings season, with companies like Walmart (WMT) outperforming while others like Macy's (M) are struggling.

R5 Capital Founder and CEO Scott Mushkin joins Market Domination to discuss whether this disparity is driven by consumer behavior or company-specific factors.

Mushkin describes the current consumer as "funny," noting a pullback in spending dating back to early spring. He highlights that inflation has particularly affected middle to lower-end consumers. However, when examining specific companies, Mushkin points to Walmart as a top pick, emphasizing that "it's them, not that the consumer's okay" because their "core" customer is still facing challenges in this environment.

"We're really key on retailers that are doing self-help," Mushkin tells Yahoo Finance.

He identifies three companies becoming increasingly dominant: Walmart, Costco (COST), and Amazon (AMZN). "Their business models are extraordinarily advantaged and becoming more advantaged," Mushkin explains. Their improved business operations allow them to control prices and drive market share. He adds, "It's really hard not to see them gaining more and more share."

Catch Yahoo Finance's exclusive interview with Walmart CFO John David Rainey from last week.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith