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 DOMINGUEZ, Calif., Jan. 6 /PRNewswire/ -- Mac Frugal's Bargains - Close-outs Inc. (NYSE: MFI) announced today that its sales for the five weeks ended Jan. 2, 1994, were $134,998,000, up 24.3 percent from $108,646,000 in the prior year. Sales in comparable stores for the five weeks were up 2.7 percent.
 Sales for the 48 weeks year-to-date were $589,312,000, an increase of 16.1 percent from the prior year's sales of $507,733,000. Year-to-date comparable store sales increased 0.2 percent.
 Leonard S. Williams, president and chief executive officer, commented that he was pleased with this sales performance, especially in light of the ongoing recession in California and the cannibalization of same-store sales as the company expands in its home markets.
 He further added that sales on holiday-related merchandise were particularly strong as were the sales generally in the eastern markets. Finally, he said that the total sales level for the month was increased significantly by the seasonal Christmas stores.
 Changes In Reporting of Comparable Store Sales
 Mac Frugal's Bargains - Close-outs Inc. believes strongly in its growth strategy of filling in existing markets, where possible, before entering new markets.
 This strategy, while it is beneficial to Mac Frugal's Bargains - Close-outs Inc. in the long term, produces negative connotations in the short term because of the way the company reports changes in comparable store sales.
 Over the next few years as the company maximizes its presence in existing markets, cannibalization of sales in existing stores will have a continuing impact.
 Mac Frugal's Bargains - Close-outs Inc. supports the view that reporting comparable store sales generally is an indication of the health and strength of the business, and this measurement should be as pure as possible and not be distorted by factors non-contributory to real growth.
 Currently Mac Frugal's Bargains - Close-outs Inc.'s definition of a comparable store is any store that has been open for a full fiscal year. For fiscal 1994, the definition will be a store that has been open for 15 months or more and does not have a new store within a four-mile radius that has been open for less than 12 months.
 For the remainder of fiscal 1993, comparable store sales increases or decreases will be reported using both definitions.
 Below are the comparable store sales using each definition for fiscal 1993 to date, together with the number of stores in each comparable store base.
 Reported change No. of New def. of No. of
 change in base change in base
 Month comp. sales stores comp. sales stores
 February 5.1% 193 6.0% 182
 March 3.8% 193 4.9% 182
 April -2.6% 193 -1.5% 182
 May 2.3% 193 3.5% 182
 June -7.5% 193 -6.3% 180
 July -7.0% 193 -5.7% 178
 August -1.6% 191 -0.3% 172
 September -0.2% 191 1.3% 172
 October 1.0% 190 2.4% 180
 November 2.0% 190 2.4% 182
 December 2.7% 190 3.9% 179
 The company operates a chain of 235 year-round retail stores in 12 states and operated a chain of seasonal Christmas stores in nine states from August through December. The year-round stores, which do business as Pic 'N' Save and Mac Frugal's Bargains - Close-outs, feature a wide variety of first-quality general merchandise obtained through manufacturer close-outs, overruns, discontinued lines, and packaging changes. The seasonal stores, which do business as Christmas Close-outs and Christmas Enchantments, feature a wide variety of first-quality Christmas and seasonal merchandise.
 -0- 1/6/94
 /CONTACT: Phil Carter, executive VP, CFO, 310-761-4167, or Dan Felsenthal, controller, 310-761-4104, both of Mac Frugal's/

CO: Mac Frugal's Bargains - Close-outs Inc. ST: California IN: REA SU: SLS

NY-LS -- LA004 -- 9576 01/06/94 06:00 EST
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Publication:PR Newswire
Date:Jan 6, 1994

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