A pack of merchandise bags is provided in a closed storage and dispensing unit. A portion of the unit is removable to provide a window through which the bag pack is exposed. Each bag in the pack is provided with a front and rear tab at the top, with the rear tab of a bag being attached to the front tab of the next bag. In addition, the rear tabs are formed together in a stack which is secured inside the unit, and each rear tab is attached to its respective bag through a relatively weak perforation. Thus, when a bag is withdrawn from the back pack by means of the front tab, the bag is opened, because the rear tab is retained to the stack of tabs. However, as additional force is exerted on the bag, the rear tab is torn free at the perforation. Since this rear tab is attached to the front tab of the next bag, the next bag is automatically opened.