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KMART AT A GLANCE

Kmart, a wholly owned subsidiary of Sears Holdings Corporation (NASDAQ: SHLD), is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands and labels.

As of January 28, 2006, Kmart operated a total of 1,416 Kmart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. This store count included 1,361 discount stores, averaging 92,000 square feet, and 55 Super Centers, averaging 165,000 square feet.

Most Kmart stores are one-floor, free-standing units that carry a wide assortment of general merchandise, including products sold under such well-known labels as Jaclyn Smith, Joe Boxer, and Martha Stewart Everyday. Approximately 100 Kmart stores sell an assortment of Sears home appliances and by the end of 2006 it is expected that all Kmart stores will carry an assortment of Craftsman tools.

Approximately 1,100 Kmart stores also contain in-store pharmacies. The Super Centers generally operate 24-hours a day and combine a full-service grocery along with the general merchandise selection of a discount store. Kmart also sells its products through its kmart.com website.

KMART STORE FACTS

Big Kmart - Big Kmart signals a different kind of Kmart. These stores are bigger, brighter and offer big savings, big value, big selection and big convenience.

Big Kmart stores are designed to increase store sales by increasing the frequency of customer visits. The format focuses on three distinct businesses - home fashions, children's apparel and consumables - and features an expanded food area known as the "Pantry."

The layout makes it easier for customers to shop by placing the departments our customers want to shop near one another, and closer to the front of the store.

The average Big Kmart carries nearly 100,000 stock-keeping units (SKUís).

Big Kmart stores average between 84,000 to 120,000 sq. ft. in size.

The first Big Kmart opened in Chicago, Illinois on April 23, 1997.

Kmart Super Centers - Kmart Super Centers are combination full-service grocery and general merchandise stores. Most Kmart Super Centers operate 24-hours a day and offer special services.

Kmart Super Centers range in size from 140,000 to 190,000 sq. ft..

Kmart Super Centers feature in-house bakeries, USDA fresh meats, fresh seafood - delivered daily of course, a full delicatessen and a variety of specialty food kiosks.

The average Kmart Super Center carries between 100,000 and 150,000 SKUís.

There are currently 55 Kmart Super Centers.

Traditional Kmart Stores - The traditional Kmart store is the one most people recognize.

Traditional Kmart stores average between 80,000 to 110,000 sq. ft. in size.

Kmart stores carry a full selection of general merchandise and include a Pharmacy.

The average Kmart store carries between 60,000 and 80,000 SKUís.

The first Kmart store opened in Garden City, Michigan in March 1962.



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