One-Hit Wonders

Borsheim’s

Omaha billionaire and renowned investor Warren Buffet makes no secret of why his wildly successful Borsheim’s has remained a one-store jewel. “Because of our single location and the huge volume we generate, our operating expense ratio is usually around 20% of sales,” wrote the chairman of Berkshire Hathaway, which owns Borsheim’s Jewelry, in a letter to customers. “We can, and do, price our goods far below the prices charged by other jewelers.”

But while Borsheim’s is known for its exceptional values, it does not cater to a discount customer. Instead, it throws a wide net that attracts a range of budgets and tastes. The strategy has paid off: The 138-year-old company, which Buffet acquired in 1989, is billed as the jeweler second to Tiffany’s New York City flagship in annual sales. Experts credit the company’s success to the tremendous buying power, prestigious reputation, outstanding customer service and extensive selection—its inventory includes more than 100,000 pieces—that it has built up over the years.

While Borsheim’s is primarily known as an upscale merchant of opulent baubles (its fine-jewelry offerings are legendary), it also stocks many affordable trinkets, as well as corporate gifts and a bridal registry. Service is exemplary across the board—whatever the transaction amount.

Located in a high-end shopping center—Regency Court—in Omaha, the landmark store occupies about 62,000 sq. ft. of retail space and has another 25,000 sq. ft. for offices. Susan Jacques, who rose through the ranks to the top position, runs the company. Originally from Zimbabwe, Jacques studied at the Gemological Institute of America and joined Borsheim’s in the 1980s. She was named president and CEO in 1994, under Buffet’s watch.

Borsheim’s has a global reach. In addition to catalog and e-commerce sales, it offers a unique program that allows customers around the world to contact Borsheim’s and describe what kind of piece they are looking for. Company associates assemble the selections and send them out—for purchase or return. According to Borsheim’s, it sends out several thousand packages annually, ranging in value from $100 to $500,000.

“We have customers in all 50 states and on six continents,” said Trisha Meuret, public relations specialist for the retailer.

When Buffett purchased the majority stake in Borsheim’s, employees wondered what impact he would have on day-to-day business. The answer turned out to be very little. Knowing a good thing when he saw it, Buffett’s directive to management at the time reportedly was: “Don’t change a thing.”

Koontz Hardware

The old saying that you can’t judge a book by its cover definitely applies to Koontz Hardware. The modest exterior of the West Hollywood, Calif., store doesn’t even hint at the treasure chest of merchandise inside. Every last inch of shelf space is packed with gadgets and gizmos, with items stacked floor to ceiling. With a staggering inventory (it claims more than 120,000 items) that ranges from obscure plumbing parts to high-quality cutlery to power tools, Koontz is hardware heaven.

The business was founded by Art Koontz in 1938. From the start, it attracted a loyal following among Hollywood and non-Hollywood types alike. Hollywood businessman Russ Wilson bought Koontz Hardware in 1977 and kept the name because of the store’s fame.

“I would never have changed the name,” Wilson has said. “Koontz was a very popular place before I ever bought it.”

Wilson and his brother Dean already owned one local hardware store—the near century-old Larchmont Hardware—when he bought Koontz. The brothers used their retail experience to build upon Koontz’s already-enviable reputation for great service and wide selection.

The 6,800-sq.-ft. Koontz boasts that its inventory is three times that of a standard Home Depot. The store plays to film people in search of specialty items as well as to regular Joes seeking out the usual nuts and bolts. Its service is as legendary as its inventory. Friendly staffers roam the aisles, with specialists in every department who know the merchandise inside and out and can offer advice on even the most arcane projects. For most shoppers the selection and service-oriented philosophy outweigh the cramped space and non-discount prices.

The store is even celebrated online, with one common theme: Shopping at Koontz is well worth the price.

“How do you pack the best of a Home Depot, Pottery Barn and Target into a space the size of your average fluff and fold?” someone penned on a West Hollywood review site. “This may be the tightest fitting anything in West Hollywood. And I like it.”

In fact, plenty of people like Koontz Hardware. But that doesn’t mean any expansion is in the offing.

“It’s not easy to expand here [in Hollywood],” said Dean Wilson, general manager. “I feel pretty sure that we’ll remain at one store.”

Furnitureland South

If size alone is the barometer of single-store success, Furnitureland South is a smash hit.

Located on a “campus” in the furniture capital of the world—the High Point area of North Carolina—the home-furnishings megastore bills itself as “the world’s largest home-furnishings showplace,” with more than 1 million sq. ft. of selling space.

Despite the success it has experienced since it first opened its doors in 1969, Furnitureland South has kept its presence to the one store in Jamestown, N.C. That has been by design.

“Furnitureland South is positioned in the epicenter of the furniture world,” explained executive VP Jason Harris (Jason’s father Darrell is the founder, and the current president and CEO). “We have been able to capitalize on the incredible advantages that High Point offers with all of the furniture manufacturing and the megafurniture market that occurs twice a year. Our commitment to creating the finest home-furnishings shopping experience in the world has kept our focus to one megastore of over 1 million sq. ft. This store couldn’t be duplicated anywhere else in the world.”

Furnitureland South’s offerings include two Design Centers, a catalog showcase gallery, the 200,000-sq.-ft. Clearance Center, the Showroom (home to the indoor furniture collections) and the Mart (outdoor furniture). A 400-ft. glass-encased walkway, called the Skylink, connects the Mart and Showroom. The enormous complex also offers many customer amenities, including Bear Rock Cafe, free shuttle service to area hotels and the airport, local hotel discounts and information on nearby nanny services. Given its size, attractions and extensive offerings, it’s no wonder the retailer is known as the “Disneyland of furniture stores.”

The hallmark of Furn