R.C. Willey is Reno bound
By Clint Engel -- Furniture Today, February 23, 2004
RENO, Nev. — RENO, Nev. — R.C. Willey will open its first store here next year, building its Nevada presence with a showroom along the same lines as its successful Las Vegas stores.
The 12-store, Salt Lake City-based retailer, part of Berkshire Hathaway's furniture division, has acquired 12 acres off U.S. 395 south of downtown Reno in the Damonte Ranch planned community of residential, commercial and business space. Construction on the 170,000-square-foot store — including 40,000 square feet of warehouse space — is expected to begin in June, with opening planned for spring 2005.
The store will be one of two anchors for Damonte Ranch Town Center, which is being developed by Lewis Retail Centers. As with its other locations, R.C. Willey's store here will carry its core furniture and bedding, consumer electronics, appliances and flooring categories.
"Our research shows the Reno area to be a nice fit for the way we do business," said Scott Hymas, R.C. Willey's chief executive officer. "We think people will be pleased with the … business model of a one-stop destination for everything to furnish and decorate their homes."
Hymas projected the store eventually will do $60 million in annual sales. The retailer's two Las Vegas market stores will do a combined $160 million this year, he said. Overall, R.C. Willey did more than $500 million last year at its stores in Nevada, Utah and Boise, Idaho, although it doesn't break out furniture, bedding and accessory sales.
While Reno is on the small side for R.C. Willey's business model, Hymas said the market's demographics and size are similar to Boise, where the company has been successful. In addition to capturing Reno-area traffic, R.C. Willey anticipates drawing consumers from small towns 100 miles away or farther.
The Reno store's warehouse will carry goods from all categories but with an emphasis on items that consumers typically demand the quickest, including appliances, big-screen televisions and appliances. The store will be supported by R.C. Willey's Salt Lake City distribution center.
Key furniture suppliers for the store include most of the retailer's regulars, such as La-Z-Boy, Broyhill, Vaughan, Universal, Aspen, Thornwood, Palliser, Schnadig and Cochrane in case goods and fabric upholstery; Natuzzi, Leather Trend and Viewpoint in leather; and Simmons, Serta and Spring Air in bedding.
Showroom features will be similar to R.C. Willey's Henderson and Summerlin, Nev., stores, though Hymas said the retailer is working on some new twists for the electronics department.
"We're excited to be coming to northern Nevada," Hymas said. He noted that last year was the best sales year ever for R.C. Willey, and "we view the future as bright."
As for the competition in the market, including Top 100 player McMahan's and Winans Furniture, Hymas said R.C. Willey is approaching them as it has competitors in its other markets — with respect but with a focus on its own business.
R.C. Willey, which has talked about opening a third Las Vegas store, continues to look at that possibility down the road. "But we're going to digest the two we have right now," Hymas said.
