EXHIBIT 99.1

                                                        CONTACT:
                                                        Kmart Media Relations
                                                        (248) 463-1021


                 KMART TO SELL UP TO 24 STORES TO THE HOME DEPOT
                      FOR A MAXIMUM OF $365 MILLION IN CASH


TROY, Michigan, June 4, 2004 -- Kmart Holding Corporation (NASDAQ: KMRT)
announced today that it has signed definitive agreements with The Home Depot,
Inc., to sell up to 24 stores for a maximum purchase price of $365 million in
cash. The exact number of stores, locations, and total purchase amount will be
determined based upon the satisfaction of certain conditions to occur within the
next 60 days.

Julian C. Day, President and Chief Executive Officer of Kmart, said, "For each
of the past four quarters, Kmart has consistently delivered improved
year-over-year profitability by focusing on the fundamental aspects of our
business. Operationally, we've improved several areas including product design,
buying, inventory management, distribution and the in-store environment. By the
same token, we will take advantage of opportunities to create value that include
the sale of existing stores, or the acquisition of new stores and businesses.
Some who follow Kmart have speculated solely on the real estate value of the
company; however, the reality is that we're taking action on many different
fronts simultaneously, all with the goal of making Kmart a great retail company
once again."

Assuming that the conditions for the transfer of the stores are satisfied, it is
expected that such Kmart stores will be converted to Home Depot stores as
quickly as possible after delivery to Home Depot.


ABOUT KMART HOLDING CORPORATION
Kmart Holding Corporation (NASDAQ: KMRT) and its subsidiaries (together,
"Kmart") is a mass merchandising company that offers customers quality products
through a portfolio of exclusive brands that include Thalia Sodi, Jaclyn Smith,
Joe Boxer, Kathy Ireland, Martha Stewart Everyday, Route 66 and Sesame Street.
Kmart operates more than 1,500 stores in 49 states. For more information visit
the Company's website at www.kmart.com.


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND OTHER MATTERS
Statements or reports made by or on behalf of Kmart which address activities,
events or developments that we expect or anticipate may occur in the future are
forward-looking






statements within the meaning of the Private Securities Litigation Reform Act of
1995 that reflect, when made, Kmart's current views with respect to current
events and financial performance. Such forward-looking statements are based upon
assumptions concerning future conditions that may ultimately prove to be
inaccurate and involve risks, uncertainties and factors that could cause actual
results to differ materially from any anticipated future results, express or
implied, by such forward-looking statements. Factors that could cause actual
results to differ materially from these forward-looking statements include, but
are not limited to, factors relating to Kmart's internal operations and the
external environment in which it operates; Kmart's ability to successfully
implement business strategies and otherwise fund and execute planned changes in
various aspects of the business; marketplace demand for the products of Kmart's
key brand partners, as well as the engagement of appropriate new brand partners;
changes in consumer spending and Kmart's ability to anticipate buying patterns
and implement appropriate inventory strategies; Kmart's ability to reverse its
negative same-store sales trend; competitive pressures and other third party
actions, including pressures from pricing and other promotional activities of
competitors, as well as new competitive store openings; the resolution of
allowed claims for which Kmart is obligated to pay cash under the Plan of
Reorganization; Kmart's ability to properly monitor its inventory needs in order
to timely acquire desired goods in appropriate quantities and/or fulfill labor
needs at planned costs; Kmart's ability to attract and retain customers; Kmart's
ability to maintain normal terms with vendors and service providers; Kmart's
ability to maintain contracts, including leases, that are critical to its
operations; Kmart's ability to develop a market niche; regulatory and legal
developments; general economic conditions; weather conditions, including those
which affect buying patterns of Kmart's customers; other factors affecting
business beyond Kmart's control; Kmart's ability to attract, motivate and/or
retain key executives and associates; and other risks detailed in Kmart's
Securities and Exchange Commission filings. Kmart undertakes no obligation to
release publicly the results of any revisions to these forward-looking
statements to reflect events or circumstances after the date such statements
were made.


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