Robert M. Burton
Divisional Vice President, Investor Relations
(248) 643-1040

KMART CORPORATION REPORTS SEPTEMBER SALES RESULTS

TROY, Mich., October 9, 1997--Kmart Corporation (NYSE: KM) today reported total consolidated sales decreased 0.1% to $2.702 billion for the five week period ended October 1, 1997, compared with $2.705 billion for the same period last year. On a comparable store basis, consolidated sales increased 3.1%.

Sales from consolidated operations for the 35 weeks ended October 1, 1997 were $20.149 billion, up 3.3% from $19.508 billion for the first 35 weeks of 1996. On a comparable store basis, consolidated sales rose 5.3% for the same period.

"Kmart’s sales for the month were below plan, with weakness in men’s and women’s apparel," said Floyd Hall, Chairman, President, and CEO of Kmart. "Most of this weakness can be attributed to warmer weather and generally lower consumer demand versus last year. In contrast, areas showing strong performance included toys, home fashions and decor, cosmetics, consumables, health and beauty aids and pharmacy.

"Kmart is continuing its efforts to improve performance in its underperforming apparel departments, however, sales through the first week of October in these businesses have been below plan."

Kmart Corporation serves America with 2,122 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.