Robert M. Burton
Divisional Vice President, Investor Relations
(248) 463-1040

KMART CORPORATION REPORTS 9.2% COMPARABLE STORE SALES INCREASE FOR JUNE

TROY, Mich., July 8, 1999 -- Kmart Corporation (NYSE: KM) today reported that June consolidated sales increased 9.2% on a comparable store basis. Total consolidated sales increased 11.3% to $3.514 billion for the five-week period ended June 30, 1999 compared with $3.158 billion for the same period last year.

Sales from consolidated operations for the 22 weeks ended June 30, 1999 were $14.403 billion, up 8.5% from $13.273 billion for the first 22 weeks of 1998. On a comparable store basis, consolidated sales rose 6.6% for the same period.

"June sales were ahead of plan, reflecting strong performance in hot-weather related categories such as seasonal apparel, accessories, and specialty items like Martha Stewart Everyday patio sets," said Floyd Hall, Chairman, President, and CEO of Kmart. "Categories showing particular strength for June include home-related areas such as home appliances, housewares, home décor, outdoor lawn and garden, as well as toys, do-it-yourself, outdoor sporting goods, ladies apparel, jewelry, consumables and pharmaceuticals."

Kmart Corporation serves America with 2,151 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.