Family-owned Warners' Stellian, heading for a third post-recession year of record sales, is opening another store, and adding a third-generation Warner to store-management ranks. The moves come 58 years after founder Jim Warner took a sales job at the old Stellian's appliance store on Snelling Avenue in St. Paul.
In the 1960s, Jim Warner acquired Stellian and renamed it Warners' Stellian. In August, Jeff Warner Jr., the son of Warners' Stellian president Jeff Warner Sr., will inaugurate the new Coon Rapids showroom, the eighth retail location.
At some companies, nepotism is discouraged. At Warners' Stellian, where young Warners all must work their way up from recycling cardboard in the warehouse, cleaning trucks or answering phones, they brag about the fact that 30 of the 230 employees are kin.
Jeff Warner Jr., a seven-year, full-time veteran of the company, will be supported by a veteran sales staff "and 10 or 20 new people behind them," said Jeff Warner Sr. "We're building the store out right now and we'll open quietly in August and have a grand opening across all the stores in October.
"This will be our first store in Anoka County. It will be about 10,000 square feet, about as big as our Woodbury and Apple Valley stores. We'll have working kitchens. We think it will be an outstanding location for us."
Jeff Warner Sr., 56, who joined the company fulltime in 1975, said Warners' Stellian is on track for a record $70 million in 2012 sales from existing stores. Warners', one of the 15 largest independent appliance retailers nationally, proves that hands-on, specialty retailing still matters in the era of big-box and online retailers.
"You'd better have some value on top of low prices," Jeff Warner Sr. said. "We're often dealing with the third generation of customers who are being advised by their parents and grandparents and who bought from people who may still work for us."
Bill Monson, a consultant who once ran the Center for Family Enterprise at the University of St. Thomas, said a couple of years ago that the Warner family was one of only a third of family businesses that survive into the second generation and only a third of those survive into the third generation. Monson credited that to "respect and admiration for each other's talents" and the fact that Warners must begin in entry-level jobs.