Waterford is one of five towns throughout Ireland vying to win top spot - the others are Ennis, Swords, Limerick City and Trim.
The winner will be announced in November.
Retail Excellence, the largest retail representative body in Ireland, run the awards on an annual basis, they are the biggest and best supported event in the Irish retail industry calendar.
Last year Navan won the prestigious title at the Retail Excellence Ireland Awards.
David Fitzsimons, head of Retail Excellence, told WLR that the story for Waterford business doesn't end there.
He said that "Some of the stores did so well as well that they now progress into the Top 100 and are now in a process where they're going to be whittled down to the top 30, and right down the National Store of the Year."
Just some of the local companies in contention are Ardkeen Quality Food Store, Sienna Home Furnishings and Mulligan's Pharmacy.
David Fitzsimons says it shows that Waterford has a "brilliant retail structure and one that you all should be proud of."
