Best Buy Co Inc (BBY) - This is the best hard goods retailer in the U.S. and they are going worldwide. They are the dominant retailer in big screen TVs. Forget Circuit City they are not as good. They sell everything and this gives them a lot they can do. If they stop being number one get out of the stock but it does not look like this will happen anytime soon.

Lowes (LOW) - They are king of the hardware stores. Home Depot is king if you look at size but the key to LOW is the room they have to grow. Growth gives LOW the value here.

Costco Wholesale Corp (COST) - This is the cheapest and best run of the warehouses. People will say Wal-Mart Stores Inc (WMT) because it is the biggest but COST is the best run and has the most room to grow. With your membership you never need to buy a warranty. The parking lot also shows the types of people that shop here, rich and poor. They pay employees well. You can go here to buy birthday cakes, crab meat, books, paintings, electronics, well everything.

Mens Wearhouse (MW) - This company is one that investors need to take seriously. They continue to be innovative with new concepts that keep them growing. This is managed like a mom and pop business but this may be one of the most creative national chains.

Federated Department Stores (FD) - They own Macys, Bloomingdales, Filenes and Lord & Taylor. Now they have more capacity and the leeway to shut down the store that are doing poorly and keep the winners after buying May Department Stores. This acquisition gives them clout with suppliers. Only WMT beats them out now. The story here is high end, consumers looking for upscale things.

Sears Holdings Corp (SHLD) - SHLD cannot be treated like any other retailer because of Ed Lampert who was working Wall Street at age 14. All this guy cares about is making the most money possible. SHLD is more a real estate story than a retail story but this will change.

J.C. Penny (JCP) - Jim has not been to a JCP store in ages but he likes them because they do the only thing that matters for a mature retail company: the stock consistently moves higher. They just added Sephora cosmetics counters to stores also. They carry brands that most consumers want, and if the company drops the ball it could be a buying opportunity for you.

Coldwater Creek (CWTR) - They are not about consistency. This is a regional to national growth story with a ton of momentum. The growth is what makes this stock attractive.