(BRK.A), (BRK.B)
Berkshire Hathaway is doubling-down on its mega-store strategy in Texas. Berkshire’s NFM (formerly Nebraska Furniture Mart) will build a second store located 200 miles from its Grandscape development located in The Colony in the Dallas-Fort Worth area.
The new store will be located in Cedar Park, a town that is 16 miles to the north-west of Austin.
While Berkshire’s plans are big, they are not the scale of its 433 acre Grandscape development.
The Cedar Park Development will feature a 250-room, full-service hotel that includes a 30,000-square-foot, city-owned convention center; a 250,000 square feet of commercial development; a 500,000-square-foot NFM store; and a 700,000-square-foot warehouse servicing NFM.
NFM’s CEO Tony Bolt began searching for a second Texas location in 2019, and finally settled on Cedar Park, which at roughly 200 miles from its Grandscape development in The Colony in Dallas-Fort Worth as to not pull away any business, but close enough to benefit from NFM’s strong name recognition that it established when it built not only the largest furniture and appliance retail store in the U.S., but also a retail and mixed-use development that includes hotels, offices, entertainment.
© 2022 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.