Kmart Unveils BlueLight Brand Strategy

Reduces Prices on 30,000 Items Storewide

Building upon the successful reintroduction of the BlueLight Special, Kmart Corporation (NYSE: KM) today announced another component of its popular BlueLight value brand -- BlueLight Always -- aimed to ensure competitive everyday prices on those items most important to American consumers. The company is supporting this initiative with a national advertising campaign, a redesigned circular, a new in-store counter emphasizing BlueLight Always values and as of this week, the lowering of prices on more than 30,000 items.

Kmart's BlueLight brand is an umbrella marketing strategy that stands for values on the brands and products that really matter to Mom and her family. Since April, the company has been reducing prices in its more than 2,100 stores through the BlueLight Always everyday value campaign, hitting a total of more than 30,000 items this week. To emphasize these competitive everyday prices, a BlueLight Always display counter will be positioned strategically near the entrance of each store. This will allow consumers to see the savings themselves, as they compare the old prices with the new lower ones.

"The introduction of BlueLight Always marks the official launch of Kmart's comprehensive strategy to be competitive every day on the items families buy most often," said Chuck Conaway, Chairman and CEO, Kmart. "Through value- based, customer-centric BlueLight programs such as these, we are rewarding the consumer, thus increasing traffic and driving frequency."

  Kmart's BlueLight brand currently encompasses several key programs:

  BlueLight Specials

A 35 year-old tradition of amazing values -- limited-time sales under the flashing blue light reward customers with unexpected deals on the top brands and products.

BlueLight Always

Low prices every day throughout the store on more than 30,000 products today, increasing daily.

BlueLight Special Buys

Volume buying and vendor promotions mean special savings on select items throughout the store.

BlueLight Sale

Incredible values featured each week in Kmart's recently re-designed advertising circular which reaches more than 72 million households every week.

BlueLight Unlimited Internet Service

At just $8.95 per month, the BlueLight ISP is the lowest-priced unlimited- use major Internet service available today.

BlueLight.com Online Shopping Site

Great deals on thousands of items online, including products you won't find in your local Kmart store. The site is the exclusive Internet home of Kmart's popular Martha Stewart Everyday collection and features online prescription refills, a Kodak Photo Zone and Kmart's famous BlueLight Specials.

Kmart will be supporting the official launch of the BlueLight Always program with a national advertising campaign that brings the BlueLight brand to life. Featuring new animated characters called "BlueLights," the television commercials begin airing nationally August 30 on major broadcast and cable networks. BlueLight Always items will also be featured prominently in the Kmart weekly advertising circular.

Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart Supercenter retail outlets through its e- commerce shopping site http://www.bluelight.com/ . More information about Kmart is available at http://www.bluelight.com/ under the "About Kmart" section.

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SOURCE: Kmart Corporation

Contact: Marketing Media Contact: Dave Karraker, +1-415-229-9770,
dave@bluelight.com , or Business Media Contact: Jack Ferry, +1-248-463-2705,
jferry@kmart.com , both of Kmart Corporation

Website: http://www.bluelight.com/








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