MARSHALL, MN (NewsDakota.com) – Runnings, a retailer based in Minnesota, has announced an agreement to purchase Home of Economy, a family-owned company with eight stores in North Dakota. This acquisition will expand Runnings’ footprint to 90 locations, serving customers in 12 states from New York to Montana.

“Home of Economy has been in business for 85 years, founded by my grandparents Bob and Jean Kiesau,” said CEO Scott Pearson. “When we decided it was time to sell the company, it was vital to us that we found a partner who would carry on our legacy of providing every customer with the products and services they need at guaranteed lowest prices. We have confidence that Runnings is that company.”

Following the sale, the owners of Home of Economy will continue to operate The Amish Gallery, a high-quality furniture store established in 1960. They plan to relocate the business to a new, independent location in Grand Forks, ND.

“We have known Home of Economy and the Kiesau family for decades,” said Brian Odegaard, President of Runnings. “These stores and communities are very similar to the markets we presently serve, including our six other North Dakota locations. Their products and services are also comparable. After discussions with Home of Economy’s leadership, both companies knew this would be a great fit.”

Home of Economy is considered by many to be the first discount store. Previously, free-trade laws required retailers to sell automotive parts at high, fixed prices. Bob Kiesau developed an innovative fleet discount program to serve farmers. In the 1950s, the Kiesaus founded Mid-States, a buying and distribution group that includes both Home of Economy and Runnings. Today, both companies offer a wide range of products, including automotive parts, farm and ranch supplies, pet and animal products, tools, housewares, and sporting goods.

The transaction between Runnings and Home of Economy is scheduled to close in September. The stores will continue operating under the Home of Economy name for a limited time before transitioning to the Runnings brand.