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

KMART CORPORATION REPORTS DECEMBER SALES RESULTS

TROY, Mich., January 7, 1999 -- Kmart Corporation (NYSE: KM) today reported that December consolidated sales increased 4.2% on a comparable store basis. Total consolidated sales increased 6.2% to $5.493 billion for the five-week period ended December 30, 1998 compared with $5.175 billion for the same period last year.

Sales from consolidated operations for the 48 weeks ended December 30, 1998 were $31.668 billion, up 4.3% from $30.358 billion for the 48 weeks ending December 31, 1997. On a comparable store basis, consolidated sales rose 4.5% for the same period.

"Strong performance over the final weeks of the holidays helped Kmart's sales for December meet expectations," said Floyd Hall, Chairman, President, and CEO of Kmart. "Categories showing particular strength included home-related items in areas such as appliances, decor, fashions, and electronics, as well as do-it-yourself, consumables, stationery, prescription drugs, and seasonal items."

Kmart Corporation serves America with 2,161 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.