City Furniture

In 1971, a young man named Kevin Koenig stood alongside his brother, Keith Koenig, outside their newly opened waterbed store in South Florida. The business was modest, and the brothers, fresh out of college, couldn’t have imagined the journey ahead. The store was called Waterbed City, reflecting a cultural trend sweeping America then. But waterbeds, like all trends, would come and go. What would remain was the Koenig brothers’ passion for furniture and their deep understanding of what the people of Florida needed—quality, affordable furniture and top-notch customer service. Little did they know that this small waterbed store would evolve into City Furniture, a furniture powerhouse with a reputation for style, sustainability, and customer satisfaction. Fast forward to today, City Furniture operates over 20 showrooms across Florida, generating over $600 million in annual revenue, and has become a leader in affordable, stylish furniture and green business practices.

Humble Beginnings: Waterbed City and the Transition to City Furniture

The story of City Furniture began in 1971 when Kevin and Keith Koenig opened Waterbed City. The waterbed craze of the 1970s and 1980s allowed the company to increase, with Waterbed City quickly expanding to multiple locations. By the late 1980s, the brothers realized that the popularity of waterbeds was waning. Rather than resist change, they adapted. The Koenigs pivoted their business from niche waterbeds to a broader furniture offering and rebranded their stores under City Furniture in 1994.

This shift marked a significant turning point in the company’s history. City Furniture began to offer a wide range of home furnishings, including living room sets, dining room furniture, bedroom collections, mattresses, and home décor accessories. By expanding their inventory, they could cater to a broader audience, and City Furniture quickly became a go-to destination for affordable, stylish furniture in Florida.

Its focus on value set City Furniture apart from its competitors in the early days. The Koenig brothers maintained the philosophy that furniture should be affordable and stylish, ensuring that families of all income levels could create beautiful, comfortable homes. By sourcing furniture directly from manufacturers and selling it without the middleman markup, City Furniture was able to offer lower prices than many of its competitors, a tradition that continues to this day.

Expansion and Growth: City Furniture by the Numbers

Over the years, City Furniture has grown exponentially in terms of physical stores and financial success. Today, the company operates over 20 showrooms across Florida, from Miami to Orlando, including large flagship stores that showcase its extensive furniture collections. The company also owns the Ashley HomeStore license for South Florida, further expanding its footprint and market share. City Furniture and its Ashley HomeStore licensee stores employ over 2,000 people, making it one of the largest furniture retailers in Florida.

According to Furniture Today, City Furniture generates more than $600 million in annual revenue, placing it among the top 30 furniture retailers in the United States. The company’s expansion strategy has been driven by organic growth and acquiring key store locations throughout Florida. In addition to its showrooms, City Furniture has embraced e-commerce, with online sales contributing a growing percentage to its overall revenue. The COVID-19 pandemic accelerated this trend, with more customers opting to shop for furniture online, and City Furniture was quick to adapt, improving its website and online shopping experience.

Customer-Centric Philosophy: Service and Experience

One of the reasons for City Furniture’s enduring success is its commitment to exceptional customer service. The Koenig brothers understood early on that furniture is a significant investment for most families and that customers want to feel confident in their purchases. City Furniture’s stores offer a highly personalized shopping experience, with knowledgeable sales associates who help guide customers through selecting the right pieces for their homes.

Beyond the in-store experience, City Furniture has invested in its delivery and logistics operations to ensure customer satisfaction. The company offers same-day delivery in many parts of Florida, a significant differentiator in a market where waiting weeks for furniture delivery is standard. Additionally, City Furniture has embraced a “white-glove” delivery service, where furniture is delivered, assembled, and placed in the customer’s home, taking the hassle out of the furniture-buying experience.

Commitment to Sustainability: A Green Business Model

One of the most unique aspects of City Furniture’s success story is its commitment to sustainability, a core value that has become integral to the company’s identity. City Furniture has made significant investments in green business practices, positioning itself as one of the country’s most environmentally conscious furniture retailers.

City Furniture’s sustainability efforts are embodied in its “Green Promise” initiative, which includes a wide range of eco-friendly practices. The company’s delivery fleet is powered by natural gas, reducing its carbon footprint and air pollution. In 2018, the company announced plans to convert its entire fleet of trucks to run on compressed natural gas (CNG) by 2025. So far, the company has transitioned a significant portion of its fleet, reducing greenhouse gas emissions by thousands of tons annually.

Additionally, City Furniture has prioritized sustainability in its stores and warehouses. The company has implemented energy-efficient lighting and heating systems, uses recycled materials in its packaging, and has adopted waste-reduction strategies to minimize its environmental impact. City Furniture’s flagship store in Tamarac, Florida, is LEED-certified (Leadership in Energy and Environmental Design), a prestigious certification recognizing buildings that meet the highest energy efficiency and environmental sustainability standards.

The company’s commitment to sustainability goes beyond operations. City Furniture also sources many of its products from manufacturers that use sustainable materials and eco-friendly production methods. This focus on green furniture allows customers to make environmentally conscious choices without sacrificing style or quality.

Innovation in the E-Commerce Space

As shopping habits have evolved, City Furniture has made significant strides in its e-commerce platform, embracing a digital-first mindset to complement its brick-and-mortar presence. The company has developed a user-friendly website that allows customers to browse its extensive catalog, read product reviews, and make purchases online. The website also features tools like 3D room planners and augmented reality (AR), enabling customers to visualize how different pieces of furniture will look in their homes before making a purchase.

In 2020, e-commerce accounted for about 12% of City Furniture’s total sales, but the company has set ambitious goals for increasing this percentage in the coming years. With the rise of digital shopping, City Furniture is constantly enhancing its online platform and expanding its digital marketing efforts, investing in search engine optimization (SEO), social media campaigns, and targeted online advertising to reach new customers.

City Furniture’s ability to adapt to changing consumer preferences—by integrating both physical and digital experiences—has been critical to its continued growth. As the online furniture market grew (valued at $79.2 billion globally in 2020), City Furniture is well-positioned to remain competitive in an increasingly digital landscape.

Challenges and Future Outlook

Like any retailer, City Furniture has faced its share of challenges. The COVID-19 pandemic, for example, created significant disruptions to global supply chains, leading to inventory shortages and delivery delays. However, City Furniture’s robust logistics network and its focus on local supply chains allowed the company to mitigate these challenges and continue serving customers throughout the pandemic.

Looking ahead, City Furniture plans to continue expanding its brick-and-mortar presence and digital capabilities. The company has announced plans to open additional showrooms in Florida and potentially other states, with a goal of becoming a leading furniture retailer not just in Florida, but across the Southeast. Additionally, City Furniture is investing in artificial intelligence (AI) and data analytics to personalize the customer experience and improve operational efficiency.

Conclusion: A Legacy of Family, Value, and Sustainability

City Furniture’s success story is one of adaptability, innovation, and family values, from its humble beginnings as a small waterbed store to its current status as a furniture giant. The Koenig brothers’ vision of providing affordable, stylish furniture to Florida families has grown into a business serving millions of customers across the state and beyond.

City Furniture has survived and thrived by staying true to its core principles of value, customer service, and sustainability. By embracing change—shifting consumer tastes or new technology—the company has positioned itself for continued success in the ever-evolving furniture industry. As City Furniture looks toward the future, its legacy of affordability, style, and green business practices will continue to shape its journey for years.