Kmart Rolls Out 'Store Within A Store' Concept, SuperCenter Expansions and New Stores

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.

(Photo: http://www.newscom.com/cgi-bin/prnh/20011025/DETH031 )

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 North 32nd Street                Phoenix, AZ        Nov. 10, 2001

Kmart SuperCenter locations effect on their local communities go beyond shopping convenience. Each store represents a strong investment in the local economy, bringing roughly 200 to 350 new jobs, per store, to each community.

Kmart SuperCenters combine the selection and value of a traditional Kmart with a full-service grocery store. Whether their needs call for a pound of ham, a new set of towels or a prescription to be filled, customers will find most everything on their to-do list can be purchased or accomplished at their Kmart SuperCenter. And they can experience this convenience 24 hours a day, seven days a week.

In addition to the 40,000 grocery items Kmart SuperCenters offer, shoppers will find a wide array of grocery amenities:

* Fresh produce is abundant at Kmart SuperCenters,

* Melt-in-your-mouth rolls, cookies, jumbo muffins and other fresh goods will tempt shoppers in the bakery.

* Shoppers on the go can grab prepackaged meat, chicken that's been pre- chopped and prepped for stir-frying or fresh seafood, such as peel-and-eat shrimp.

* The hot and cold delicatessen menus offer freshly made items such as potato salad and rotisserie chicken, as well as many gourmet selections.

* Newly updated Jewelry displays highlighting Kmart's extensive selection of fine and costume Jewelry.

Kmart SuperCenters convenience and high-quality selection doesn't end in the grocery aisles. Customers can shop for everyday and specialty merchandise before or after loading up their carts with groceries.

Kmart's merchandise assortment offers recognized national brands such as Rubbermaid, Black and Decker, and Fruit of the Loom. Combined with Kmart's own high-quality private labels such as Sesame Street clothing for kids, Kathy Ireland and Jaclyn Smith women's apparel, Route 66 clothing for the entire family, Martha Stewart Everyday home fashions, Thom McAn shoes, White- Westinghouse appliances, BenchTop tools and Penske Automotive products, offers style and value not found anywhere else.

The one-stop convenience story gets even better: Kmart SuperCenters offer services such as video rental, hair salons, florists, UPS shipping, banking, photo processing, in-store eateries and a pharmacy. In order to accommodate shoppers with special needs, Kmart SuperCenters features mechanical doors, motorized shopping carts and enlarged rest rooms.

Kmart Corporation serves America with 2,100 Kmart, Big Kmart and Kmart SuperCenter retail outlets. In addition to serving all 50 states, Kmart operations extend to Puerto Rico, Guam and the U.S. Virgin Islands. More information about Kmart is available through the World Wide Web at http://www.bluelight.com/ . To locate the Kmart store nearest you, call 1-800-866-0086.

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SOURCE: Kmart Corporation

Contact: Susan Dennis, Senior Media Relations Specialist, or Jack Ferry,
Director, Financial and Corporate Communications, of Kmart Corporation,
+1-248-463-1021

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