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

KMART CORPORATION REPORTS OCTOBER SALES RESULTS

TROY, Mich., November 5, 1998-- Kmart Corporation (NYSE: KM) today reported that October consolidated sales increased 4.0% on a comparable store basis. Total consolidated sales increased 4.3% to $2.374 billion for the four-week period ended October 28, 1998 compared with $2.275 billion for the same period last year.

Sales from consolidated operations for the 13 weeks ended October 28, 1998 were $7.642 billion, up 4.5% from $7.315 billion for the 13 weeks ended October 29, 1997. On a comparable store basis, consolidated sales rose 4.2% for the same period.

Sales from consolidated operations for the 39 weeks ended October 28, 1998 were $23.273 billion, up 3.8% from $22.424 billion for the 39 weeks ending October 29, 1997. On a comparable store basis, consolidated sales rose 4.8% for the same period.

"Kmart's sales for October were on plan despite softer apparel sales due to unseasonably warm weather during the latter half of the month. Sales volumes for the third quarter were near expectations," said Floyd Hall, Chairman, President and CEO of Kmart. "Categories showing particular strength for the month included home appliances and electronics, do-it-yourself, home decor, cosmetics and fragrances, consumables, stationery and pharmaceuticals."

Kmart Corporation serves America with 2,154 Kmart retail outlets, including 45 stores that opened October 29, 1998. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.

(a) Kmart Corporation completed the divestiture of its remaining International Operations during June 1997.