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

KMART CORPORATION REPORTS JULY SALES RESULTS

TROY, Mich., August 6, 1998-- Kmart Corporation (NYSE: KM) today reported that July consolidated sales increased 5.9% on a comparable store basis. Total consolidated sales increased 6.1% to $2.358 billion for the four-week period ended July 29, 1998 compared with $2.222 billion for the same period last year.

Sales from consolidated operations for the 13 weeks ended July 29, 1998 were $8.116 billion, up 3.4% from $7.846 billion for the 13 weeks ended July 30, 1997. On a comparable store basis, consolidated sales rose 4.4% for the same period.

Sales from consolidated operations for the 26 weeks ended July 29, 1998 were $15.631 billion, up 3.5% from $15.109 billion for the 26 weeks ending July 30, 1997. On a comparable store basis, consolidated sales rose 5.2% for the same period.

"July comparable sales performance was ahead of plan. Despite a soft June, sales volumes for the second quarter were near our expectations, leading us to be confident in Kmart's operating performance for the second quarter," said Floyd Hall, Chairman, President and CEO of Kmart. "Categories showing particular strength for the month included apparel, stationery, home appliances and fashions, outdoor sporting goods, health and beauty, consumables, seasonal items and pharmaceuticals."

Kmart Corporation serves America with 2,114 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.