The Origin of Nebraska Furniture Mart: A Story of The American Dream

Nebraska Furniture Mart (NFM) stands as one of the largest home furnishing stores in North America, with a fascinating origin story rooted in resilience, family values, and innovative business strategies.

Founded during the Great Depression by Rose Blumkin—known affectionately as “Mrs. B”—NFM’s rise from a small Omaha basement shop to a billion-dollar enterprise reflects its founder’s unwavering commitment to quality and customer service.

Nebraska Furniture Mart (NFM): Key Facts

• Founded: 1937 by Rose Blumkin, in Omaha, Nebraska
• Headquarters: Omaha, Nebraska
• Ownership: Acquired by Berkshire Hathaway in 1983
• Locations: 5 major stores (Omaha, NE; Clive, IA; Kansas City, KS; The Colony, TX; Cedar Park, TX, opening in 2026)
• Scale: Largest home furnishing store in North America, with some locations exceeding 500,000 square feet in retail space

Rose Blumkin's Journey to America

Rose Blumkin’s story is one of resilience, ambition, and grit. Born in 1893 in Belarus, she fled persecution and limited opportunities in Eastern Europe, where she and her family faced constant prejudice. Her journey to America involved crossing multiple countries and evading restrictions during wartime. Despite speaking only Yiddish and Russian, she arrived in Fort Dodge, Iowa, where she soon reunited with her husband and settled with their young family. Eventually, the Blumkins moved to Omaha, Nebraska, where a growing Jewish community and economic opportunity awaited.

The Birth of NFM: Building a Business from a $500 Loan

In 1937, with a loan of $500 from her brother, Rose Blumkin opened Nebraska Furniture Mart in the basement of her husband’s second-hand clothing store. She quickly realized that her competitive edge lay in keeping prices low, often working directly with suppliers to negotiate deals that would allow her to pass savings onto her customers. Her philosophy was simple yet effective: “Sell cheap and tell the truth.” Mrs. B’s dedication to fair prices earned her a loyal customer base, even as larger competitors sought to undermine her by pressuring suppliers to withhold inventory.

The Fight for Fair Prices

Mrs. B’s business faced numerous challenges, especially from competitors who tried to stifle her business by restricting her access to wholesale suppliers. Undeterred, she took matters into her own hands, traveling to new suppliers across the country to source products. Her approach—keeping prices lower than competitors’—allowed her to capture a significant share of Omaha’s furniture market. NFM’s growing reputation attracted customers from all over Nebraska, and the business quickly outgrew its basement location, expanding into larger storefronts throughout Omaha.

A Handshake with Warren Buffett

As NFM’s success grew, Mrs. B’s family became involved in running the store, but she remained a force in daily operations. In 1983, at the age of 89, she decided to sell a majority stake in the company to Warren Buffett, who famously completed the deal with a handshake. Buffett was impressed by her business acumen, describing Mrs. B as having “run rings around” top executives. His respect for her approach led him to skip formal audits, trusting her integrity and reputation as sufficient indicators of the business’s strength. The deal, valued at $60 million, marked the beginning of NFM’s path under Berkshire Hathaway.

Continued Growth and Family Legacy

Even after selling the majority of her business, Mrs. B continued working at NFM, often logging 70-hour weeks until her 90s. When her family suggested she step back, she briefly opened a competing store across the street, underscoring her dedication to retail and love for hard work. Buffett quickly bought the new venture and merged it back into NFM.

As NFM transitioned to the next generation, Rose’s children and grandchildren expanded operations, opening major stores in Clive, Iowa (2001), Kansas City, Kansas (2003), and The Colony, Texas (2015). These stores, particularly the Texas location with 560,000 square feet of retail space, turned NFM into a regional powerhouse, attracting customers from across state lines.

The Modern Era: A National Brand in the Making

In recent years, NFM has rebranded to reflect its growth beyond the Midwest, adopting the initials “NFM” as it eyes more national markets. Today, NFM operates five flagship stores, with plans for a new location in Cedar Park, Texas, set to open in 2026. While the company has grown significantly, the core principles set by Mrs. B—quality, honesty, and competitive pricing—continue to define its business model.

NFM’s Enduring Legacy and Commitment to Value

Nebraska Furniture Mart’s journey from a basement store in Omaha to a national retail giant is a testament to Rose Blumkin’s vision and work ethic. Her principles of “selling cheap and telling the truth” laid the foundation for NFM’s growth, and under Berkshire Hathaway, the company has maintained its commitment to value and customer satisfaction. Rose Blumkin’s legacy lives on in NFM’s approach to business, as it remains focused on bringing accessible, quality furnishings to homes across America.

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