Robert M. Burton
Director, Investor Relations
(810) 643-1040

KMART CORPORATION REPORTS MAY SALES RESULTS

TROY, Mich., June 5, 1997--Kmart Corporation (NYSE: KM) today reported total consolidated sales increased 2.1% to $2.482 billion for the four week period ended May 28, 1997, compared with $2.431 billion for the same period last year. On a comparable store basis, consolidated sales increased 2.7% and U.S. Kmart sales increased 2.8%. Results exclude sales of the discontinued Builders Square operations.

Sales from consolidated operations for the 17 weeks ended May 28, 1997 were $9.745 billion, up 3.6% from $9.406 billion for the first 17 weeks of 1996. On a comparable store basis, consolidated sales rose 4.7% for the same period and U.S. Kmart sales rose 4.9%.

"Kmart's sales for the month were below plan due primarily to cold weather, " said Floyd Hall, Chairman, President, and CEO of Kmart. "This affected sales of seasonal goods such as selected apparel, horticulture, and camping. Performance in our Martha Stewart Everyday domestics continued strong. Other areas showing particular strength for the month included children's apparel, sporting goods, home electronics, consumables, housewares, health and beauty accessories, and photography."

Kmart Corporation serves America with 2,122 Kmart retail outlets, and operates 123 stores internationally. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.