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

KMART CORPORATION REPORTS JULY SALES RESULTS

TROY, Mich., August 7, 1997--Kmart Corporation (NYSE: KM) today reported total consolidated sales increased 5.9% to $2.222 billion for the four week period ended July 30, 1997, compared with $2.098 billion for the same period last year. On a comparable store basis, consolidated sales increased 9.2%.

Sales from consolidated operations for the 13 weeks ended July 30, 1997 were $7.846 billion, up 3.7% from $7.566 billion for the 13 weeks ended July 31, 1996. On a comparable store basis, consolidated sales rose 5.5% for the same period.

Sales from consolidated operations for the 26 weeks ended July 30, 1997 were $15.109 billion, up 3.9% from $14.541 billion for the first 26 weeks of 1996. On a comparable store basis, consolidated sales rose 5.6% for the same period.

"Kmart’s sales for the month were ahead of plan, with particular strength in the consumables and hardlines areas," said Floyd Hall, Chairman, President, and CEO of Kmart. "Other areas showing particular strength for the month included children’s and intimate apparel, cosmetics, family hosiery, bed and bath, home electronics, outdoor living, and toys. Our efforts to clear slow-moving women’s apparel were successful, enabling us to enter the third quarter positioned for improved performance in this area."

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