Robert M. Burton
Divisional Vice President
Investor Relations
(248) 463-1040

KMART CORPORATION REPORTS 2.5% COMPARABLE STORE SALES INCREASE FOR SEPTEMBER

TROY, Mich., October 7, 1999 -- Kmart Corporation (NYSE: KM) today reported that September consolidated sales increased 2.5% on a comparable store basis. Total consolidated sales increased 4.5% to $2.987 billion for the five-week period ended September 29, 1999 compared with $2.857 billion for the same period last year.

Sales from consolidated operations for the 35 weeks ended September 29, 1999 were $22.434 billion, up 7.3% from $20.899 billion for the first 35 weeks of fiscal 1998. On a comparable store basis, consolidated sales rose 5.4% for the same period.

"September sales were below expectation, as the retailing environment became increasingly promotional through the back-to-school season," said Floyd Hall, Chairman, President, and CEO of Kmart. "Categories showing particular strength for September at Kmart included home-related areas such as housewares, home fashions and décor, as well as seasonal items, jewelry, fashion accessories, consumables and pharmaceuticals."

Kmart Corporation serves America with 2,153 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.