It was 1937, in the depths of the Great Depression, when a woman named Rose Blumkin, known affectionately as “Mrs. B,” set up a small furniture business in the basement of her husband’s pawn shop in downtown Omaha, Nebraska. An immigrant from Belarus with little formal education, Mrs. B had only $500 in savings and a fiery entrepreneurial spirit. She didn’t speak fluent English, but what she lacked in language skills, she more than made up for with grit, determination, and an uncanny ability to spot a deal. She undercut her competitors by selling furniture at a fraction of the usual price, famously declaring, “Sell cheap, tell the truth, and don’t cheat nobody.” Little did anyone know that this tiny basement operation would grow into the largest furniture retailer in the United States: Nebraska Furniture Mart (NFM). Today, NFM spans hundreds of thousands of square feet, employs thousands of people, and serves millions of customers annually. But its success is rooted in Mrs. B’s relentless pursuit of affordable furniture for everyone.
The Growth of Nebraska Furniture Mart: From Basement to Big Business
Nebraska Furniture Mart’s meteoric rise from a small basement shop to North America’s largest single-location home furnishings retailer is extraordinary. Starting with a modest investment of $500, Mrs. B’s philosophy of low prices, vast selection, and exceptional customer service proved the winning formula for success. Her business acumen allowed the company to increase, and by 1946, Nebraska Furniture Mart moved into a 60,000-square-foot space, an enormous upgrade from the basement beginnings.
By the 1980s, NFM had become a regional powerhouse, and its success caught the attention of billionaire investor Warren Buffett, who was so impressed by Mrs. B’s business skills that he bought a 90% stake in the company for $60 million in 1983. The deal was sealed with a handshake, and Buffett famously remarked, “I didn’t need a contract with her. Her word was her bond.” This partnership provided the financial backing and stability that allowed Nebraska Furniture Mart to expand further.
Today, NFM has four massive retail locations—Omaha, Kansas City, Dallas-Fort Worth, and Des Moines—with the Dallas-Fort Worth store boasting over 560,000 square feet of retail space, making it the largest furniture store in the United States. Collectively, NFM’s stores cover more than 1.8 million square feet of retail space, offering everything from furniture to appliances, electronics, and flooring.
A Retail Giant: Stats and Expansion
Nebraska Furniture Mart’s scale and reach are staggering. As of 2023, NFM generates annual revenues of over $1.5 billion, placing it among the top furniture retailers in the country. According to Furniture Today, NFM consistently ranks in the top five U.S. furniture stores in revenue, competing with other big names like Ashley Furniture and Ikea.
In 2015, NFM opened its most prominent location in The Colony, Texas, part of the Dallas-Fort Worth metropolitan area. This vast store spans 100 acres, including the main showroom and a massive warehouse and distribution center. To give a sense of scale, the Dallas-Fort Worth store is large enough to fit nine football fields inside, and it carries over 500,000 products, from recliners to refrigerators.
What sets NFM apart from its competitors is its size and comprehensive range of products. While furniture is its bread and butter, the company also offers a wide selection of electronics, appliances, flooring, and home décor. About 40% of its sales come from categories other than furniture, making NFM a one-stop shop for almost any household need. This diverse product mix has helped the retailer weather economic downturns and continue to grow.
Another key to NFM’s success is its focus on providing value. The company has maintained Mrs. B’s founding philosophy of offering quality products at low prices. By leveraging its immense buying power, NFM can negotiate better deals with manufacturers, passing those savings on to customers. For example, during its famous annual Labor Day sale, prices on certain items can drop by as much as 50%, drawing tens of thousands of shoppers to its stores.
The Berkshire Hathaway Effect
Warren Buffett’s purchase of Nebraska Furniture Mart in 1983 was pivotal in the company’s history. Under the umbrella of Berkshire Hathaway, NFM could scale its operations significantly without the financial constraints that often limit privately owned businesses. With Buffett’s backing, NFM expanded into new markets, including Kansas City in 2003 and Dallas-Fort Worth in 2015, further solidifying its status as a retail giant.
Berkshire Hathaway’s influence has also provided NFM with financial security that most other retailers can only dream of. In an industry where many companies operate on thin margins and high debt, NFM has no long-term debt and can afford to weather economic downturns without cutting back on operations or staff. This financial strength allowed NFM to expand even during the Great Recession when many other retailers were forced to close stores or file for bankruptcy.
In addition, Buffett’s reputation for ethical business practices has helped NFM maintain its strong customer loyalty. The company has consistently ranked high in customer satisfaction surveys, with many shoppers praising the store for its honest pricing, knowledgeable staff, and wide selection. This trust has been a critical factor in NFM’s ability to compete with online retailers like Amazon and Wayfair, which have disrupted the traditional furniture retail market in recent years.
The Digital Revolution and NFM’s Adaptation
E-commerce has transformed the retail industry, and furniture stores have yet to be immune to the shift. In response, Nebraska Furniture Mart has invested heavily in its online presence, creating a user-friendly website that offers the same vast selection found in its physical stores. According to internal company data, NFM’s e-commerce sales now make up over 15% of its total revenue, which continues to grow yearly.
NFM’s website features detailed product descriptions, customer reviews, and high-quality images, allowing customers to shop confidently from their homes. In addition, the company offers free in-store pickup and white-glove delivery services, which have become increasingly popular options for online shoppers.
But NFM still has its brick-and-mortar stores. Instead, the company has embraced an omnichannel approach, integrating its physical and online operations to provide a seamless shopping experience. Customers can browse products online, check store inventory in real-time, and even use augmented reality (AR) tools to see how furniture will look in their homes before purchasing.
Community Engagement and Charitable Work
Nebraska Furniture Mart’s success is not just measured by its financial performance; the company is also deeply committed to giving back to the communities it serves. Throughout its history, NFM has donated millions to local charities, schools, and nonprofit organizations. The company regularly partners with Habitat for Humanity, donating furniture and appliances to needy families.
In addition, NFM hosts annual events like the “Stuff the Truck” food drive, which collects thousands of pounds of food for local food banks. The company also supports education initiatives through scholarships and donations to local schools, reflecting Mrs. B’s belief in the importance of community involvement.
Conclusion
Nebraska Furniture Mart’s journey from a small basement store to a multi-billion-dollar retail empire is a testament to the vision and determination of its founder, Rose Blumkin. What began as a humble effort to provide affordable furniture to the people of Omaha has grown into one of the most successful furniture retailers in the world. With the backing of Berkshire Hathaway, NFM continues to expand, innovate, and adapt to changing market conditions while staying true to Mrs. B’s core values: “Sell cheap, tell the truth, and don’t cheat nobody.”
