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Which Big Box Retailer Is Best?

Discount retailers with low costs and attractive pricing will do well in 2010, Cramer said.

Wholesale clubs, in particular, are gaining market share in food and their membership-based business model is thriving. So when it comes to investing, how do you decide between two household-name warehouse retailers, like Costcoand BJ's ?

Cramer notes that Costco sales per square feet double BJ's. Costco also focuses on private labels — the generic brands that are competitive with national brands in terms of status and quality. Their Kirkland Signature brand has nearly 20% sales penetration while BJ's private label penetration dropped from 13% in 2007 to 10% in 2009. Costco also has better same store sales with a 10% increase in its latest quarter while BJ's reported an 8% increase in its latest quarter.

But the best metric? Watch the video to see how Cramer breaks down this side-by-side comparison in greater detail.



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