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

KMART CORPORATION REPORTS JUNE SALES RESULTS

TROY, Mich., July 9, 1998-- Kmart Corporation (NYSE: KM) today reported that June consolidated sales increased 1.5% on a comparable store basis. Total sales in U.S. Kmart stores increased 1.7% for the five-week period ended July 1, 1998. Including results from divested international operations, total consolidated sales increased 0.5% to $3.158 billion compared with $3.142 billion for the same period last year.

Sales from consolidated operations for the 22 weeks ended July 1, 1998 were $13.273 billion, up 3.0% from $12.887 billion for the 22 weeks ending July 2, 1997. On a comparable store basis, consolidated sales rose 5.1% for the same period.

"June comparable sales performance was below plan due to a combination of unfavorable weather and soft Father's Day comparisons," said Floyd Hall, Chairman, President and CEO of Kmart. "We continue to feel good about the overall performance for the second quarter. Categories showing particular strength for the month included ladies and children's apparel, home electronics, home fashions, do-it-yourself, jewelry, health and beauty, consumables, and pharmaceuticals."

Kmart Corporation serves America with 2,115 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.