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FOR IMMEDIATE RELEASE

KMART CORPORATION REPORTS MAY SALES

Troy, Michigan, June 7, 2001 -- Kmart Corporation (NYSE: KM) today reported that for the four-week period ended May 30, 2001 net sales decreased 1.0% on a same-store basis. Total net sales were $2.846 billion, a decline of 2.3% from $2.913 billion for the same period last year.

Net sales for the seventeen-week period ended May 30, 2001 increased 1.0% on a same-store basis. Total net sales were $11.183 billion, down slightly from $11.251 billion for the same period last year.

"We reported sales slightly less than plan despite major disruptions in our operations caused by resetting 20% of our entire store base, reducing our reliance on advertising, and experiencing significantly unfavorable weather conditions across the country which adversely effected our apparel and seasonal sales. We continue to see strong gains in our frequency businesses, the Drug and Food categories," said Chuck Conaway, Chairman & CEO of Kmart. "Over the next two quarters, we are aggressively pursuing resetting every store to drive higher frequency and initiating new food distribution and assortments, which is necessary to make Kmart more competitive. We are working to complete these store disruptions by the end of the third quarter, as committed."

Kmart began this reset project on May 15, 2001. These resets include the re-laying of the Pantry department in all stores, introducing new assortments and providing new grocery and consumable distribution for two-thirds of the chain. Kmart is re-signing and re-laying its Pantry departments to make them more consistent across the chain, with six aisles and a new midway section. It is also adding a "Wall of BlueLight Values" to highlight its best buys for the week. The new resets will increase Kmart's competitiveness by increasing its off-the-shelf offering, which is currently nine percent of sales.

The first 369 stores were reset in May. The next phase of the project will commence on June 10, with another 745 stores to be reset during the month of June. The final stores will be completed in July and August.

					Change
($ Millions)	05-30-01		05-31-00		All Stores	Same-Store
Total Kmart	$2,846		$2,913		(2.3%)	1.0%

					Change
($ Millions)	05-30-01		05-31-00		All Stores	Same-Store
Total Kmart	$11,183		$11,251		(0.6%)	1.0%
# of Store Locations	2,113		2,171		(2.7%)

Cautionary Statement Regarding Forward-looking Information
Statements, other than those based on historical facts, which address activities, events, or developments that the Company expects or anticipates may occur in the future are forward-looking statements which are based upon a number of assumptions concerning further conditions that may ultimately prove to be inaccurate. Actual events and results may materially differ from anticipated results described in any forward-looking statements. The Company's ability to achieve such results is subject to certain risks and uncertainties, including, but not limited to, economic and weather conditions which affect buying patterns of the Company's customers, changes in consumer spending and the Company's ability to anticipate buying patterns and implement appropriate inventory strategies, continued availability of capital and financing, competitive factors, and other factors affecting business beyond the Company's control. Consequently, all of the forward-looking statements are qualified by these cautionary statements and there can be no assurance that the results or developments anticipated by the Company will be realized or that they will have the expected effects on the Company or its business or operations.

Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart supercenter retail outlets. Kmart donates $35 million each year to support its hometowns and local non-profit organizations. Kmart associates also provide their most valuable resource - time - everyday in their local communities. In addition to serving all 50 states, Kmart operations extend to the Caribbean Islands and Asia Pacific. More information about Kmart is available on the World Wide Web at www.bluelight.com under the "About Kmart" section.