The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.
Retailing is a tough business. Investors must be choosy. There was a great article in The Wall Street Journal recently highlighting the troubles at Best Buy, RadioShack, and GameStop. Their worlds are changing and it's difficult for them to adjust, which spells trouble. When John and David search for retailers, they look for ones with concepts that are resonating today and have growth ahead of them. In the video, they talk about two such ideas. The first is Ulta Salon. The company sells a wide range of beauty products, has been performing well, and has plenty of opportunities to open new stores. David's daughter identified the next idea: Five Below. It's a recent IPO that's growing fast, has a concept resonating with teens and preteens, and looks to have a bright future. Bottom line: Stick with the growers and forget the turnarounds.
To learn about two other retailers with especially good prospects, we invite you to take a look at The Motley Fool's special free report "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.