Meet the man who turned Nick Scali into a 10-bagger

Nick Scali is a furniture powerhouse. Since listing in May 2004, the store count has grown from 10 to 107 without having to tap shareholders for additional capital. Who knew Australians had such an insatiable appetite for leather lounges?  Equally as impressive as store growth are the financial returns investors have enjoyed. Since listing, sales have increased by 1,068%, net profit has increased by 1,407%, and the dividend has increased by 1,263%. From a listing price of $1 to the current share price of $10.79, Nick Scali (ASX:NCK) has been a 10-bagger for shareholders who have stayed the course.  The driving force behind this impressive story is Anthony Scali, son of founder Nick, an ambitious Italian immigrant who came to Australia in 1955 at just 18. After a brief stint selling televisions in Melbourne, Nick moved to Sydney and opened his first store in 1962 on the Hume Highway in Ashfield.  Anthony Scali worked in the family business from a young age and progressively played a more significant role in the running of the growing retailer. He officially took over the CEO role when the company was listed on the ASX and says he has no plans on stepping aside and has eyes for further expansion into the UK.  In this episode of Success and More Interesting Stuff, Anthony talks about the mindset and approach that has created one of Australia’s most iconic retailers.    Time codes:    00:00 - Introduction 01:56 - The Nick Scali advertisements  02:47 - Slow and steady growth 04:15 - Why investors are cautious on retailers 05:25 - The start of Nick Scali 08:43 - Nick Scali’s business philosophies 12:16 - How Anthony got started in the furniture business  14:01 - Moving from niche to mainstream offerings 15:31 - Lessons in debt and property  18:32 - Nick Scali (ASX:NCK) lists on the ASX 20:41 - Passing the CEO baton from Nick to Anthony  24:07 - Growing the family business 26:21 - The initial plan for store growth  27:50 - The ingredients for success in retail 35:25 - The Nick Scali niche - quality and value 37:55 - Anthony Scali’s approach to management 40:45 - Anthony Scali sells down some of his shareholding 43:54 - The vision for Nick Scali in Australia and New Zealand 45:49 - Taking the Nick Scali concept to the UK 49:32 - The outlook for the Australian market  50:57 - Antony Scali on succession planning but no plans to retire 53:45 - Property investments still intriguing, even after the 1990s experience