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According to the National Retail Federation, two-thirds of Americans (an 11% increase over 2005) will celebrate Halloween this year by spending nearly $5 billion on everything from costumes and candy to decor.

In fact, decor is the segment of Halloween merchandise that American consumers have embraced for creating the ultimate Halloween experience at home. Kmart, in step with this trend, has created an extensive collection of indoor and outdoor decor items including an incredible 8 foot inflatable globe featuring swirling ghosts and a life-sized grim reaper -- a Halloween version of the incredibly popular lawn-sized "snow globes" found in yards during the Christmas season.

Lawn decorating, in general, has extended far beyond a carved pumpkin and themed flag to life-sized skeletons, caged pirates and ghosts as well as grave stones, rats and even black roses -- all designed to enhance the trick-or- treating experience.

"We have seen an increase in the popularity of Halloween," said Bill Stewart, chief marketing officer, Kmart. "The holiday, once marked by sales of candy and simple costumes, has grown into an important annual business featuring exclusive decor items and more elaborate costumes, all designed to help customers create the ultimate Halloween celebration. Kmart is quickly becoming a key seasonal destination for customers looking for unique, affordably-priced decor and attire."

About Kmart

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 that include Thalia Sodi, Jaclyn Smith, Joe Boxer, Martha Stewart Everyday and Route 66. For more information visit the company's website at or the Sears Holdings Corporation website at .

SOURCE: Kmart

CONTACT: Colleen Cleary of Kmart, +1-212-546-2463, ccleary@searshc.com

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