Homemakers’ Merschman discusses $30M renovation
By David Perry -- Furniture Today, December 14, 2009
NAPLES, Fla. — There’s nothing like a $30 million renovation and expansion project to give your business a shot in the arm.
That was one of the messages delivered at the Furniture/Today Leadership Conference here by Dave Merschman, president of Homemakers Furniture in Des Moines, Iowa, the largest furniture retailer in the state.
The company has seen plenty of growth over the years. Dave’s parents, Carl and Ina, started the business in 1974 with a 31,000-square-foot store and 10 employees. In 2000, the Merschman family sold the business to Nebraska Furniture Mart and became part of the Berkshire Hathaway furniture group.
Two years later, the Merschmans began planning for a major expansion.
Dave Merschman, who manages the business with his brothers Alan and Roger, said the expansion got under way in June 2007. The project reduced the size of the store as portions of it were renovated, and the building was “pretty well beat up” during the construction.
But the results were worth waiting for: The showroom grew from 170,000 to 215,000 square feet, with every square foot of space renovated. The showroom is now one of the 10 largest furniture showrooms in the country, Dave Merschman said. And the warehouse grew from 109,000 square feet to 175,000 square feet.
The renovation and expansion brought four new departments: Area rugs, a lamp gallery, clearance center and accessories department. All four have been highly successful, Merschman said.
The grand-opening strategy for the new facilities included a total facelift for the company, with an updated logo and a new Web site. A three-month grand-opening sale was accompanied by everything from free barbecue to free breakfasts. And the grand- opening gala attracted Berkshire Hathaway’s legendary leader, Warren Buffett, who delivered a folksy, upbeat message about the power of American entrepreneurs and the American spirit.
Capitalizing on Buffett’s presence, the retailer issued “Buffett Bucks,” which brought a $50 price cut on a $100 purchase and were good on the opening day only. That was “a very successful day,” Merschman said.
The new store has generated three strong months of sales, with increases of 47%, 44% and 74% in August, September and October. Traffic in those months was up 83%, 47% and 80%, respectively, he said.
He also talked about a sweet strategy that leaves consumers with a good taste: The retailer has a cookie station halfway through the store, where fresh-baked cookies, water and lemonade are served to shoppers. Last year, Homemakers gave away more than 400,000 cookies.
Merschman described Nebraska Furniture Mart as a great partner. And he said that Buffett is “hands off, but he’s there if we need him.”
During his presentation, Merschman showed several pictures of the revamped store. Furniture/Today’s editor in chief, Ray Allegrezza, who has seen the store, said the new facilities look even better than they appear in the pictures.
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Homemakers hits home run with renovation
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