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

KMART CORPORATION REPORTS JANUARY SALES INCREASE

TROY, Mich., February 6, 1997--Kmart Corporation (NYSE: KM) today reported, using the "NRF" retail calendar, consolidated sales rose 7.2% for the four-week period ended January 29, 1997 over sales for the four weeks ended January 31, 1996. Comparable sales in U.S. Kmart stores increased 8.0% over the same period. Total consolidated sales for the four week period were $1.948 billion, an increase of 5.4% compared with $1.849 billion for the comparable 1995 period.

Using the alternative retail calendar which compares the four weeks ending January 29, 1997 against the four weeks ending January 24, 1996, U.S. Kmart comparable sales increased 2.2%.

Total sales from consolidated operations for the 13 weeks ended January 29, 1997 were $10.249 billion, up 3.6% from $9.888 billion for the 13 weeks ended January 31, 1996. On a comparable store basis, U.S. Kmart stores rose 5.6% for the same period.

Total sales from consolidated operations for the 52 weeks ended January 29, 1997 were $33.987 billion, up 0.2% from the $33.912 billion for the 52 weeks ended January 31, 1996. In the company’s 1996 annual financial statements, consolidated sales for both years will be reduced by approximately $2.6 billion as the company reclassifies its Builders Square subsidiary as a discontinued operation. On a comparable store basis, U.S. Kmart stores rose 2.6% for the same period.

"Kmart’s sales performance was satisfactory through the quarter," said Floyd Hall, Chairman, President, and CEO. "Category performance continued in the trends established throughout the year, with stronger performance in consumables, followed by softlines and hardlines. Areas showing particular strength for the month included men’s and children’s apparel, intimates and fashion accessories, toys, housewares, electronics, consumables and cosmetics."

Kmart Corporation serves America with 2,038 Kmart and 168 Builders Square retail outlets, and operates 127 stores internationally. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.