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

KMART CORPORATION REPORTS SEPTEMBER SALES RESULTS

TROY, Mich., October 8, 1998-- Kmart Corporation (NYSE: KM) today reported that September consolidated sales increased 5.6% on a comparable store basis. Total consolidated sales increased 5.8% to $2.857 billion for the five-week period ended September 30, 1998 compared with $2.702 billion for the same period last year.

Sales from consolidated operations for the 35 weeks ended September 30, 1998 were $20.899 billion, up 3.7% from $20.149 billion for the 35 weeks ending October 1, 1997. On a comparable store basis, consolidated sales rose 4.9% for the same period.

"September comparable sales were on plan, with strength in home appliances and electronics partially offsetting slow fall apparel results due to unseasonably warm weather," said Floyd Hall, Chairman, President and CEO of Kmart. "Other categories showing strong performance included home decor, outdoor sporting goods, jewelry, stationery, cosmetics and fragrances, cameras and accessories, consumables, seasonal items and pharmaceuticals."

Kmart Corporation serves America with 2,115 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.