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 TROY, Mich., May 25 /PRNewswire/ -- Joseph E. Antonini, Kmart chairman, president and CEO, advised shareholders today at the company's annual meeting that the Kmart new store and modernization program is generating gains in comparative sales, operating profit and pretax income improvements.
 "At year-end 1992, when we compared the results of our modernized stores with our non-modernized stores, the new-look Kmart stores had annualized comparative sales gains of 6 percent. Operating profit and pretax income improvement in these modernized stores outpaced the gain in sales," said Antonini.
 The company evaluated the performance of 214 stores in 10 key markets, including Atlanta, Chicago, Detroit, Houston, Los Angeles, Minneapolis, Philadelphia, Pittsburgh, Riverside/San Bernardino, Calif., and the Tampa/St. Petersburg/Clearwater, Fla., markets. Forty-three percent of the stores in each of the groups studied compete directly with Wal-Mart.
 "Comparing the Kmart 'Look of the '90s' stores with non-modernized stores, the results showed new-look stores achieved higher levels of sales and are 35 percent more profitable," Antonini said.
 The study also showed these stores had a higher market share at a higher rate than non-new-look stores. Antonini reported the average market share for the new-look group was 6.11 percent as compared to 4.97 percent for the non-refurbished stores.
 Antonini attributed the success of the renewed stores to the company's focus on its customers and response to their desire to find value in an efficient yet enjoyable shopping experience. By year-end 1993, 57 percent of the U.S. Kmart store base will be in the new modern format with 200 stores scheduled to be renewed in 1993.
 "If we want people to shop our stores, we must entice, service and in some ways, entertain them. We must give them more and more reasons to shop our stores," Antonini said.
 Taking the shareholder audience on a tour of the company's newest prototype stores via video, Antonini spotlighted the new Builders Square II format, Borders Books and Music, the Auburn Hills, Mich., Kmart and the Montrose, Ohio, Super Kmart Center.
 "Our renewal program never stops," said Antonini. "Our goal is to make continuous improvement a way of life, so we can truly offer our very best in quality, service, value, merchandise and facilities to the customers who shop all our stores."
 Addressing the new global business environment, Antonini reported the Kmart stores in the Czech Republic and Slovakia were undergoing refurbishment and would have re-grand openings in the fall. The company's Mexico operations expect to open the first Super Kmart Center formats in 1994.
 Acknowledging the commitment of Kmart associates to making the renewal program a success nationwide and around the world, Antonini introduced the 1992 Customer Care Chairman Award winners. The three Kmart store managers whose stores received the most customer compliments in their region during 1992 were Dan Rockman, Kmart 4192-Southfield, Mich., East/Central Region; Bill Adams, Kmart 3249-Venice, Fla., Southern Region; and Wayne Perzee, Kmart 3391-Arnold, Mo., West/Central Region.
 Four outstanding customer service award winners were also honored by Chairman Antonini at the meeting. The following individuals received the most customer compliments within their region: Diane Murray, Kmart 3333-Saugus, Mass., East/Central Region; Edith Keeton, Kmart 3249- Venice, Fla., Southern Region; and Mary Dengler and Melvin Jackson, Kmart 3391-Arnold, Mo., who tied for the most customer compliments in the West/Central Region.
 Antonini also recognized with special honor, Bill Smith, manager of Kmart 3044, Lawton, Okla., who will celebrate his 50th anniversary with the company in July.
 During the business portion of the meeting, four directors were re- elected to Kmart's board for a three-year term including Joseph E. Antonini, Kmart chairman, president and CEO; F. James McDonald, retired president of General Motors Corp.; Donald S. Perkins, retired chairman of the board of Jewel Companies, Inc.; and Gloria M. Shatto, president, Berry College.
 Nine other directors remaining on the board are: Lilyan H. Affinito, former vice chairman of the board of Maxxam Group Inc.; Joseph A. Califano Jr., chairman and president, Center on Addiction and Substance Abuse at Columbia University; Willie D. Davis, president of All Pro Broadcasting, Inc.; Enrique C. Falla, executive vice president and chief financial officer of The Dow Chemical Company; Joseph P. Flannery, chairman of the board, president and chief executive officer of Uniroyal Holding, Inc.; David B. Harper, president, David B. Harper Management Co., Inc.; Richard S. Miller, executive vice president, U.S. Kmart Stores; J. Richard Munro, chairman of the executive committee of Time Warner Inc.; and Joseph R. Thomas, Kmart executive vice president, International and Administration.
 Kmart Corporation (NYSE: KM) serves America with over 4,000 retail outlets in all 50 states in the United States and in Puerto Rico, Canada, the Czech Republic and Slovakia. Kmart, currently operating 2,412 Kmart stores, is also the parent company for PACE Membership Warehouse, Builders Square, PayLess Drug Stores, Waldenbooks, The Sports Authority, OfficeMax and Borders.
 -0- 5/25/93
 /CONTACT: Mary Lorencz, manager, Public Communications, Kmart Corporation, 313-643-1021/

CO: Kmart Corporation ST: Michigan IN: REA SU:

JG-SB -- DE004 -- 2065 05/25/93 10:03 EDT
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Date:May 25, 1993

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