Dallas – Fort Worth

March 14, 2013

Chart of the week

Nebraska Furniture Mart – retail, distribution, or what?
The Colony – Far North Dallas Number of locations – 2 full-scale stores Locations – Omaha, Kansas City, Des Moines (satellite store) Founded – 1937 (Blumkin family) Founder – Mrs. B, retired at 103 (1997) Moto – “sell cheap and tell the truth” Owner – Berkshire Hathaway, acquired 80% interest (1983) Typical size – 450,000 SF (retail) 500,000+ SF (distribution) Sales -- $400M / store ($900 / SF) Products – Everything! Furniture, appliances, flooring, electronics, accessories Internet introduction -- 1998

Source: Jones Lang LaSalle

• Ground was broken in north Dallas last year for NFM’s third store (planned Spring 2015 opening). A tax increment financing package has helped pave the way for this new development. • The Dallas operation will include a retail showroom of 560,000 square feet. It will also encompass the company’s largest distribution center – 1.3 million square feet. • With the existing full-scale stores generate $400M in sales, the larger Dallas operation is forecast to hit $600M-plus. • Like Ikea, its Swedish counterpart, NFM has become a tourist destination in Omaha and Kansas City, drawing people from several hours away. It is expected that the Dallas store will attract 8 to 10 million visitors annually. • The 433-acre project will have extensive highway frontage along a key north Dallas growth corridor. Plans also include additional retail, hotel, and entertainment space – to expand the reach of the NFM brand. • Supply chain management is a critical component because NFM will not be able to shuttle products by truck daily to serve Dallas, like it currently does between Omaha and Kansas City.

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