January 8, 1998

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

KMART CORPORATION REPORTS DECEMBER SALES RESULTS

TROY, Mich., January 8, 1998--Kmart Corporation (NYSE: KM) today reported that December consolidated sales increased 2.9% on a comparable store basis. Total sales in U.S. Kmart stores increased 3.4% for the five-week period ended December 31, 1997. Including results from divested international operations, total consolidated sales increased 0.2% to $5.175 billion compared with $5.163 billion for the same period last year.

Comparable store consolidated sales rose 4.9% for the first 48 weeks of 1997. Total sales in U.S. Kmart stores increased 5.0% for the 48 weeks ended December 31, 1997. Including results from divested international operations, sales from consolidated operations were $30.358 billion for the period, up 2.4% from $29.634 billion.

"Despite strong performance over the last two weeks of the month, Kmart’s sales for December were at the low end of expectations. Comparable sales gains were affected by slow sales in the early part of December as well as comparison with the 11.6% gains of a year ago," said Floyd Hall, Chairman, President, and CEO of Kmart. "Categories showing particular strength included jewelry, housewares and home fashions, electronics, children’s apparel, seasonal items, cosmetics, consumables, and photography."

Kmart Corporation serves America with 2,136 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.