Nebraska Furniture Mart
Nebraska Furniture Mart is a home furnishing store in North America that sells furniture, flooring, appliances, and electronics. It is the largest of its kind in North America. NFM was founded in 1937 by Belarus-born Rose Blumkin, who was known as Mrs. B., in Omaha, Nebraska, United States. Under the motto "sell cheap and tell the truth," she worked in the business until age 103. In 1983, Mrs. B. sold a majority interest to Berkshire Hathaway on a handshake deal with Warren Buffett for $60 million.
History
Nebraska Furniture Mart was founded in 1937 by Rose Blumkin in Omaha, Nebraska. Blumkin borrowed the initial $500 investment from her brother while her husband Isadore continued to run their second hand clothing store. At one point early on, the Blumkins had to sell their own home furnishings to pay off a debt. Mrs. B set the Mart apart by selling products cheaper than the other furniture store around. The bigger competitors were able to successfully get the furniture suppliers to stop selling to the Mart because of the prices. Rather than give up and raise prices, Mrs. B went to other suppliers around the country while still underselling her competitors.In 1983, at age 89, Mrs. B sold 80% of Nebraska Furniture Mart to Warren Buffett in a one-page handshake deal. Buffett bought the company without auditing her inventory or books, instead basing the deal on his own shopping experience at the Mart and his respect for the Blumkin family. Mrs. B sold the business due to her belief that if she sold before her death, her children wouldn't fight over the company. She continued to work at the store, putting in her normal 70-hour work week, using an electric scooter to get around. Soon after the sale, Buffett would say, “Put her up against the top graduates of the top business schools or chief executives of the Fortune 500 and, assuming an even start with the same resources, she’d run rings around them.”
In 1989, at age 95, Mrs. B's family forced her into retirement. Unhappy with this and realizing that Buffett had not made her sign a non-compete agreement, Mrs. B started "Mrs. B’s Clearance and Factory Outlet" across the street from Nebraska Furniture Mart three months later. Two years later, "Mrs. B’s Clearance and Factory Outlet" was profitable and the third largest carpet outlet in Omaha. The following year, Buffett purchased the new store and merged it with the Mart. In 1994, the Mart added an electronics and appliance store.
In 1998, at age 104, Mrs. B died, leaving behind the nation's largest home furnishings store. In 2000, Nebraska Furniture Mart bought Homemakers Furniture and opened the Mart's second location in Clive, Iowa.
In 2003, the Mart opened its third store in Kansas City, Kansas' Village West complex. The opening of the Kansas City store was initially plagued with problems for nearly two years. The store was overwhelmed by the number of customers, which also caused deliveries to lag by more than 30 days. The problems multiplied, because the initial rush of customers never let up. Because of the initial difficulty in getting the large store up and running, NFM president Ron Blumkin initially told Warren Buffett that he never had plans to open another store.
By 2011, this attitude had changed, and Nebraska Furniture Mart announced their fourth and largest location, in The Colony, Texas, which is a far north suburb of Dallas. The problems with the Kansas City location opening would lead to much more long-term planning in the eventual development and opening of the Texas location. The store, called the "Nebraska Furniture Mart of Texas", opened in 2015.
In 2019, the company shortened its name to NFM, as the business decided to shift to expanding beyond the Midwest.