Kmart Rolls Out 'Store Within A Store' Concept

TROY, Mich., Oct. 25 /PRNewswire/ -- Kmart Corporation (NYSE: KM)
announced today that it is adding 15 Kmart SuperCenters to its portfolio by
mid-November of 2001, bringing the total number of SuperCenter locations
throughout the United States and the Caribbean to 124 by year-end.

Ten traditional Kmart stores are being converted within the existing
space, three are expansion and conversion of existing Big Kmart stores and two are newly developed SuperCenter locations.

Kmart also will open two traditional Big Kmart stores in Cranston, RI and New Windsor, NY. "We're excited about the possibilities of our 'in-the-box' conversions to
SuperCenters," said Chuck Conaway, Chairman and CEO of Kmart Corporation. "Right now our plans are to go slow and treat these openings as test cases that we can study before we move forward.

But we believe that we have anywhere from 1,000 to 1,300 stores that could be converted to SuperCenters.
And with our real estate portfolio, that gives us leverage to better serve our
customers and shareholders." Starting last weekend, Kmart unveiled the first of its ten "Store Within a
Store" concept stores.

These stores integrate the SuperCenter concept into the existing space of a Big Kmart store.

The following SuperCenter locations are scheduled to open as follows:

Kmart "Store Within A Store" Conversions Opening Dates

Calle Bentances Final Carr, 156 Caguas, PR Oct. 17, 2001
400 Rodeo Place North Anchorage, AK Oct. 20, 2001
3121 Airport Way Fairbanks, AK Oct. 20, 2001
6525 Glacier Highway Juneau, AK Oct. 20, 2001
8601 Old Seaward Highway South Anchorage, AK Oct. 20, 2001
2115 West Walnut Street Rogers, AR Oct. 20, 2001
3500 Joslyn Road Auburn Hills, MI Oct. 20, 2001
45460 Utica Park Boulevard Utica, MI Oct. 20, 2001
444 Route 211 E. Middletown, NY Oct. 20, 2001
2101 Telegraph Bloomfield Hills, MI Nov. 10, 2001

Kmart SuperCenter Expansions
2333 East South Blvd. Montgomery, AL Nov. 17, 2001
4041 Atlanta Hwy. Montgomery, AL Nov. 17, 2001
200 W. Belleview Avenue Englewood, CO Nov. 17, 2001

New Kmart SuperCenters
19990 Telegraph Road Detroit, MI Nov. 17, 2001
12025