Mac Frugal’s Acquired
As part of a consolidation trend in the deep-discount retail industry, Ohio-based Consolidated Stores Corp. agreed in November to acquire the Dominguez-based Mac Frugal’s Bargains Close-Outs Inc.
The $995 million deal would see Consolidated as the new owner of Mac Frugal’s 321 Pic N’ Save stores. After the deal is finalized, which is expected this month following shareholder votes of both companies, Consolidated would have 2,270 stores in all 50 states. Consolidated is the nation’s largest retailer of close-out merchandise, and operates most of its stores in the Midwest.
Analysts say the merger with Consolidated would allow Mac Frugal’s stores to better compete by giving it better wholesale resources. The stores carry brand-name items at about 40 percent to 70 percent less than discount giants K-Mart and Wal-Mart.
Analysts say a diminishing social stigma associated with discount shopping has been largely responsible for the increasing profitability of these stores.