Juana Diaz is Friendliest Kmart Store in the Caribbean

Employees Receive Cash Bonuses and Party for Providing Outstanding Customer Service

Kmart Corporation (NYSE: KM) today announced that Juana Diaz Kmart store located at State 149 and State 584 will be honored for achieving the highest customer satisfaction score in the Caribbean Division as measured by Kmart's new customer satisfaction program, the Super Service Index (SSI).

The SSI program is a customer feedback program that assigns each store a percentage, or score, based on "highly satisfied" customers who have responded to a 1-800 call-in number printed on store receipts. The percentage is determined by the number of customers who rate their shopping experience as "excellent." The Juana Diaz store had the highest SSI score in its division and was awarded $1,000 to host a party for all associates.

The party, exclusively for associates, will be held at the store on Sunday, August 19 just after the store closes at 6 p.m. All Kmart associates from Juana Diaz will enjoy some of their favorite food and special music from a local singing duo.

Store employees also received cash bonuses based on improvements in the store's SSI score. Paid quarterly, the cash bonuses are part of the new Super Service Rewards program established in February that recognizes and rewards Kmart store associates for providing world-class customer service.

The bonus is a percentage of the associate's earnings, determined by how much the store has increased their SSI score, or maintained their current high score. Only those stores who increased their SSI score or maintained their high score qualified for the bonus. Kmart awarded a total of $18 million in bonuses to associates in 1,290 stores in the first quarter of 2001.

"We are extremely proud of the Juana Diaz store," said Steve Falcon, Kmart regional vice president. "They have proven their strong commitment to their customers, and their customers are thanking them by calling in and expressing their satisfaction. That means higher SSI scores for the store and big rewards for all associates."

The new program is designed to support Kmart's business strategy and create daily intensity around improvements in customer service. This is the first time bonuses and store parties have been awarded through the SSI program.

The Super Service Rewards Program is just one element of Kmart's customer service initiative. In September of 2000, Kmart launched a new 24-hour Customer Call Center (1-866-Kmart4U) to expedite the resolution of customer concerns. In October, the company implemented a Super Service Sweepstakes program that awards one customer $10,000 each month for giving feedback about their most recent Kmart shopping experience.

Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart Supercenter retail outlets. Kmart donates $35 million each year to support its hometowns and local nonprofit organizations. Kmart associates also provide their most valuable resource -- time -- every day in their local communities. In addition to serving all 50 states, Kmart operations extend to the Caribbean Islands and Asia Pacific. More information about Kmart is available on the World Wide Web at http://www.bluelight.com/ under the "About Kmart" section.

SOURCE: Kmart Corporation

Contact: Susan Dennis, Media Relations Specialist of Kmart Corporation,
+1-248-463-1021

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








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