MARSHALL, Minn. — The family-owned North Dakota company Home of Economy announced on Thursday that it has reached an agreement with the Minnesota-based retailer Runnings to purchase its eight North Dakota stores.

“Home of Economy has been in business for 85 years, founded by my grandparents Bob and Jean Kiesau,” CEO Scott Peterson said in a release. “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.”

Home of Economy currently has stores located in eight North Dakota communities, including Minot, Williston, Rugby and Devils Lake. The transaction is expected to close in September, and the stores will continue to operate under the Home of Economy banner for a limited time period as they transition to the Runnings brand.

The owners of Home of Economy are planning to continue to operate The Amish Gallery, a high-quality furniture retail store and will be relocating the business to a new independent location in Grand Forks.

Home of Economy, founded in 1939 in Thief River Falls, Minnesota, is considered by many to be the first discount store, as free-trade laws at the time required retailers to sell automotive parts at high, fixed prices. Founder Bob Kiesau innovated a fleet discount program to serve farmers and founded a buying and distribution group in the 1950s called Mid-States, of which both Home of Economy and Runnings are members.

“We have known Home of Economy and the Kiesau family for decades. 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,” Runnings President Brian Odegaard said.

Runnings currently has six stores in North Dakota, including one in Bottineau.