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

KMART CORPORATION REPORTS MAY SALES RESULTS

TROY, Mich., June 4, 1998-- Kmart Corporation (NYSE: KM) today reported that May consolidated sales increased 6.9% on a comparable store basis. Total sales in U.S. Kmart stores increased 7.3% for the four-week period ended May 27, 1998. Including results from divested international operations, total consolidated sales increased 4.7% to $2.600 billion compared with $2.482 billion for the same period last year.

Sales from consolidated operations for the 17 weeks ended May 27, 1998 were $10.115 billion, up 3.8% from $9.745 billion for the 17 weeks ending May 28, 1997. On a comparable store basis, consolidated sales rose 6.3% for the same period.

"May comparable sales performance exceeded plan as we benefited from strong retail sales trends, as well as improved merchandise assortments and continuing favorable weather," said Floyd Hall, Chairman, President, and CEO of Kmart. "Categories showing particular strength for the month included ladies and children’s apparel, home electronics, home appliances, toys, jewelry, outdoor sporting goods, consumables, pharmaceuticals, and photography."

Kmart Corporation serves America with 2,117 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.