SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN
PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Check appropriate box:
( ) Preliminary proxy statement
( ) Definitive proxy statement
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( ) Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12
KMART CORPORATION
(Name of registrant as specified in its charter)
KMART CORPORATION
(Name of Person(s) Filing Proxy Statement)
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(X)* $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1)
or 14a-6(i)(2)
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( ) Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
and 0-11.
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The following is the text of two press releases that were
issued by Kmart Corporation on June 3, 1994:
"Kmart Chairman Joseph E. Antonini today outlined an
action plan to improve the company's performance and
recessed the company's 82 Annual Shareholders meeting
until 5 p.m. so that proxy voting can continue.
Due to the importance of the vote and large number of
unvoted and untabulated shares, the voting period was
extended to 5 p.m. Antonini said votes are running about
2 to 1 in favor of the Specialty Retail Stock Proposal
though there is a significant number of shares that have
not yet been voted or tabulated.
The annual meeting will reconvene at 5 p.m. for purposes
of closing the voting process.
In his remarks to shareholders, Antonini outlined four
performance goals the company will focus on to deliver
improved value to Kmart shareholders. Antonini promised
to report regularly to shareholders specific measures to
reach these goals. The goals are:
1. Restore Kmart's earnings power by boosting
sales in the core U.S. Kmart stores division.
2. Complete the modernization of the Kmart store
base, including the roll-out of the Super Kmart
Center format.
3. Strengthen the commitment to give customers the
merchandise they want at the right time and right
price at all times.
4. Build a culture within Kmart that fosters and
thrives on positive change.
`These goals encompass actions ranging from boosting
store sales to overhauling core systems to refining daily
operations,' Antonini said.
At the meeting, Antonini identified profit improvement
initiatives amounting to $600 to $800 million over the
next two years with more than $100 million to be realized
in 1994 alone.
Actions Kmart is putting into place to accomplish these
goals include a new field management structure which
allows decision making closer to the customer; a new
store management structure combining soft and hardlines
reporting directly to the store manager; new stocking
methods which free up sales floor associates for customer
service; micro marketing to enhance promotional
opportunities store by store; daily delivery of products
to stores; and consolidating functions at the
headquarters level.
`Our management team is determined and personally
committed to turning around the earnings of our core U.S.
Kmart Store Division,' added Antonini.
Turning to the Specialty Division, Antonini stated that
the company had carefully reviewed the Specialty Retail
portfolio during the past five years. The review
resulted in discontinuing the operation of PACE
Membership Warehouses and divesting the Payless Drug
Stores subsidiary. Three of the remaining businesses --
Borders/Walden, The Sports Authority and OfficeMax -- are
fast-growing, strongly profitable businesses with
leadership positions in their respective segments. The
fourth, Builders Square, has considerable potential with
a format that sets it apart from competitors in the home
improvement category.
`Our four specialty retailing businesses continue to be
significant sources of value creation for shareholders
and have been over the past few years,' said Antonini."
* * *
"Kmart Corporation today announced that due to the large
number of shares that had not yet been voted and
tabulated as of its 9 a.m. Annual Shareholders Meeting,
polls will remain open until 5 p.m. today.
The Kmart Annual Shareholders meeting is in recess until
the polls close. Shareholders may vote their shares by
delivering properly executed proxies to the company prior
to 5 p.m. At 5 p.m. the meeting will reconvene solely
for the purposes of closing the polls.
Kmart shareholders are being asked, among other things,
to approve a proposal to authorize the Board of Directors
to issue four new series of Kmart common stock that are
intended to reflect the separate performance of each of
its specialty retail businesses.
Questions concerning the voting of shares should be
directed to the company's information agent, Georgeson &
Company, Inc., toll-free at 1-800-233-2064."
