For modern fabrics and great prices go to Intrepid Threads in Milpitas. A little hard to find because it's in professional complex so call them at 408-649-3844 when you are here. You don't want to miss this store. It has different hours open Wednesday through Saturday.
For lots of great fabric and big collection of Kaffe Fassett fabric go to Golden State Quilting in Campbell, 408-866-1181.
We also have a craft store, Beverlys in San Jose. They have lots of great fabric 408-264-1200.
All these stores are great and have great staff. Intrepid thread hold their prices to the same as on their internet site so they are usually around $9.85. Golden State has new owners and they have ordered great new fabric lines. Beverly is a chain store but carry a large selection of premium fabrics. Have a great time here. Both Milpitas and Campbell are really close to San Jose (less than 15 minutes from anywhere in San Jose)