Owner Rosie Lebewitz will celebrate a "grand opening" of what she's renamed Rosenthal Interiors next month.

The first opening was by her great grandparents in 1895.

Rosenthal Furniture, now Interiors, is downtown's oldest furniture retailer.

It will be a bittersweet party for Lebewitz. She grew up in the business and bought the store in 1999 from her parents, Sherm and Bobbie Lebewitz.

Sherm visited the store nearly every day, as he had as an owner for 50 years before that.

A furniture-sales veteran with a quick wit, a feel for what would sell at what price, and a ready smile, Sherm was Rosie's dad, friend and often-cautious business adviser. In September, he died from complications suffered from a fall. He was 87.

Rosie, a very youthful 61, and Sherm were working through a slow transformation of the company from a discounter of traditional furniture to more contemporary furniture and furnishings. It wasn't easy. Sales hovered a bit under or over $2 million for more than a decade.

A lot of the old customers had died and the kids had moved away. Rosie was trying to tap more of the younger crowd, looking to rent downtown and in the booming North Loop. She was having mixed success with a foot in the old-and-new camps. There are a lot of places to buy a sofa for several ­hundred bucks.

But Rosie is nothing if not resourceful, and a survivor.

Rosie took over Rosenthal's, located on Fifth Street near 1st Avenue N., 17 years ago. Since then, the store has survived a fire that gutted the building, flooded streets, LRT construction on 5th Street that still inhibits parking and walk-in traffic, and rowdy-bar traffic. Rosenthal's doesn't stay open late any more.

Rosie could have retired, sold the building for, probably, a few million bucks in a hot neighborhood, and gone sailing.

Instead, she decided to complete the six-figure renovation of the 2,400-square-foot building into a bright remodeled showroom of high-end furniture from the United States and Europe. The lower-cost Asian-made stuff is gone.

Sherm would have questioned the strategy thoroughly, as he rubbed his chin. Then approved.

"Dad would probably have said, 'This is nothing I would have done, but I'm proud she's going with her gut,'" said Rosie's brother, Joel Lebewitz, a partner at the Lurie accounting firm. "He always had confidence in her. But he liked to test her. To get her to think twice. And then everything was OK."

Sherm would be proud of his daughter. The upscale gamble is working. The "stressless" recliners from Norway are a hot ticket at $1,800 to $4,000. The USA-made Wiemann beds that sell for $3,500 to $5,000 are popular.

Rosie Lebewitz and her designers focus less on selling pieces and more on working with customers to design and furnish entire rooms.

The seven-employee business could top $3 million in sales and generate a profit, Lebewitz projected the other day.

It beats retirement. And she still gets to go to exercise class and take a couple overseas trips a year.

"I'm a young whippersnapper," Lebewitz said as she sat on a bed in her store, her dog at her feet. "I love this business. It's in my mind, my blood and soul. I know what will sell. And I want this store to be about fun, employees, customers and relationships.

"It's the experience that matters. We want to make it worthwhile for customers who live downtown or customers who make a special trip downtown to Rosenthal Interiors. And we've stepped it up."

Rosie was known for a little edgy humor years ago in print ads. Her favorite is one in which she managed to embrace gay customers, homeless dogs, a passion of hers; her mother, while others even featured a few pieces of furniture. All in one ad.

Rosie has hired a couple interior designers. Local artists have adorned the walls of Rosenthal's six-figure remodeled showroom. It's brighter and less crowded than in the past. The $999 sofas "are not us anymore," Lebewitz said.

Turn-of-the-century founded Rosenthal's has a newfound hip and contemporary feel.

"I've been at this 17 years as owner," Lebewitz said. "I've always believed in myself. I think I've got the right people now.

"We've started an in-home design service. We get an hourly rate and can pass on some discounts [we get on furniture] to the clients when we do a whole room. We used to sell a chair or lamp. Now we do rooms."

Rosie Lebewitz and her retailing ancestors have proved over the years that they can adapt, roll with a punch, recover.

Sherm Lebewitz always reminded everybody to not forget to laugh and enjoy the business.

"Dad would have said he couldn't have done this or believe that somebody would pay $16,000 for a sectional, multipiece sofa," Rosie said. "But he would have smiled and said, 'It's your store.' "

Neal St. Anthony has been a Star Tribune business columnist and reporter since 1984. He can be contacted at nstanthony@startribune.com.