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Nebraska Furniture Mart

From Alfawiki
NFM
Company typePrivate (subsidiary of Berkshire Hathaway)
IndustryRetail (furniture, flooring, appliances, electronics)
Founded1937
FounderRose Blumkin
Headquarters
Omaha
,
United States
Area served
North America
Key people
Rose Blumkin (founder), Warren Buffett (majority owner)
ProductsFurniture, flooring, appliances, electronics
OwnerBerkshire Hathaway
Websitewww.nfm.com

NFM (previously known as Nebraska Furniture Mart) stands as a premier home furnishings retailer in North America, specializing in furniture, flooring, appliances, and electronics. Established in 1937 by Rose Blumkin, an entrepreneur originally from Belarus and affectionately called Mrs. B., the company has evolved into the continent's largest retailer within its sector. Mrs. B. founded the enterprise based on the principle of "selling affordably and being honest," maintaining her involvement until she reached 103 years of age. In 1983, she transferred an 80% ownership stake to Warren Buffett, chairman of Berkshire Hathaway, for $60 million through a handshake agreement, underscoring Buffett's admiration for her business expertise and the firm’s strong market presence.

History

In 1937, Rose Blumkin launched Nebraska Furniture Mart with a $500 loan from her brother. Early obstacles included competitors pressuring suppliers to sever relationships due to her aggressive pricing strategy. Undaunted, Mrs. B procured merchandise nationwide to uphold low prices, thereby securing a significant competitive edge within the furniture retail market.

At 89 years old, Mrs. B entrusted majority ownership to Warren Buffett without conducting an audit, basing her decision on his favorable customer reputation and trust in her management abilities. Even after the sale, she remained heavily involved in daily operations, demonstrating strategic leadership that impressed Buffett, who later acknowledged her superior business insight compared to top executives.

Compelled to retire at age 95 by family members, Mrs. B established "Mrs. B’s Clearance and Factory Outlet" nearby. This venture thrived financially and was eventually acquired by Buffett and integrated into Nebraska Furniture Mart’s operations. The company broadened its offerings by introducing an electronics and appliance division in 1994.

Following Mrs. B’s passing at age 104 in 1998, the business sustained its expansion through acquisitions and new store launches: acquiring Homemakers Furniture in Iowa (2000), inaugurating a Kansas City branch in 2003 despite initial operational hurdles, and unveiling its largest location in The Colony, Texas, in 2015 after refining its approach to growth.

In 2019, reflecting its expansion beyond the Midwest market, the company rebranded as NFM to better represent its evolving business model and nationwide growth objectives.

Locations

By 2020, Nebraska Furniture Mart operated five stores: two in Omaha (including "Mrs. B's Clearance Center & Factory Outlet") plus locations in Iowa, Kansas, and Texas.

Omaha, Nebraska

The flagship Omaha store encompasses over of retail space situated on acres of land along South 72nd Street in West Omaha. This expansive campus features a substantial electronics and appliance section added in 1994 that offers computers, software, televisions, appliances, and personal electronic devices. The premises also include Mrs. B's Clearance Center. Both the Omaha and Kansas City locations carry more than 85,000 furniture pieces, 185,000 appliances and electronics items, along with extensive carpet selections exceeding .

Clive, Iowa

Established in 2001 near Des Moines, the Clive location relocated in 2019 to a larger space formerly occupied by Dahl's Foods. Owned by Berkshire Hathaway alongside nearby Homemakers Furniture, this store emphasizes electronics, appliances, bathroom fixtures, and lawn care products rather than traditional home furnishings.

Kansas City, Kansas

Established in 2003 within the Village West development located to the west of downtown Kansas City, Missouri, this Kansas City facility encompasses of combined retail and warehouse areas spread over . Situated in close proximity to Kansas Speedway and Children's Mercy Park, it was the initial location outside Omaha to provide the entire product assortment. It draws customers from across the country as a prominent shopping destination.

The Colony, Texas

Nebraska Furniture Mart revealed its intention to enter the North Texas market on November 9, 2011. Construction commenced in September 2012 in The Colony, a northern suburb of Dallas. The store quietly opened on March 4, 2015, with the official grand opening following on May 7, 2015. This site represents the largest among NFM’s four outlets, offering of retail space alongside of warehouse and distribution facilities, facilitating business expansion and strengthening its foothold in the region.

Cedar Park, Texas

On December 9, 2021, NFM announced plans for a new store in Cedar Park, Texas, aiming for an opening in 2026. This project serves as the centerpiece of a $400 million hotel and convention center development, highlighting a strategic move to boost market influence and broaden revenue sources.

See also

References

  • Lowenstein, Roger. Buffett: The Making of an American Capitalist. Random House, 1995, (pp. 246–256),

External links