WASHINGTON, DC, Aug 3, 2006 / --- Bigger does not always mean better, as Stores Magazine unveiled its list of ‘Hot 100 Retailers’ – the fastest growing companies in the retail sector as featured in the magazine’s August issue.

While all retailers on the list showed impressive gains over the past year, growth was achieved in many different ways. Three of the top five retailers expanded through acquisitions.

Video game and entertainment software giant GameStop, which tops the list with an impressive 67.8 percent sales increase, grew largely from its 2005 acquisition of competitor EB Games.

The Children’s Place, third on the list, purchased the Disney Store in 2004 and has seen a substantial 44.2 percent increase in year-over-year revenues. One of the most familiar retailers in the nation, No. 4 Federated Department Stores, snagged its high position through the purchase of May Department Stores.

Other retailers found that substantial growth could be achieved by tweaking their marketing strategy. After a lackluster performance in 2004, Abercrombie & Fitch successfully integrated sexy and edgy marketing campaigns last year to boost its customer base, sales and unit growth, landing it the No. 5 spot with a 37.8 percent sales gain.

bebe Stores saw increases after shifting its focus from teens to an older, more style-conscious age group. As a result, sales soared and bebe secured the sixth spot with 36.9 percent year-over-year revenue gains.

Companies have also experienced growth by expanding the number of channels in which they do business. By developing from a catalog merchant to a retailer with an Internet and store presence, No. 7 Coldwater Creek grew 33.5 percent in 2005 and plans to add 65 more units this year.

Then again, a handful of the Hot 100 Retailers do not have stores at all. Despite reporting nearly $29 million in losses last year, Overstock.com secured the No. 2 spot on the list with a 62.5 percent sales gain. Additionally, No. 20 Amazon.com and No. 40 QVC made the list as non-store retailers with year-over-year growth of 22.7 percent and 14.3 percent, respectively.

Retailers rounding out the top 10 include Dress Barn (8), Urban Outfitters (9), and Chico’s FAS (10).

“Revenue is frequently a reliable gauge of customer support, while profit is an indicator of how well the store is run,” said STORES Publisher and NRF Vice President Rick Gallagher. “Investors will tell you that smaller companies often have greater potential for growth, and that is certainly reflected throughout the Hot 100. We think the list represents a fresh approach to identifying the retail companies to watch.”

Sponsored by Alliance Data, the ‘Hot 100 Retailers list’ highlights the retail companies that reported the greatest year-over-year revenue percentage growth. All public companies with more than $100 million in sales were eligible for the list, which provides a definitive ranking of the nation’s fastest-growing companies. This is the first year the list has been compiled.

Stores Magazine is the monthly publication of the National Retail Federation. For more information please log on at: www.nrf.com