ShopKo August Comps Decline 0.2%

ShopKo Stores Inc. reported consolidated sales for the four weeks ended August 28, 2004 decreased 0.5% to $254.8 million from $256.2 million during the same period last year. Consolidated comparable store sales decreased 0.2%.

           Sales Summary by Business Segment (dollars in millions)

     Retail Segments                   Period Ended         % Change
     4 Weeks:                             8/28/04      Total**      Comp*
       ShopKo                              $194.1      (0.7)   %  (0.2)  %
       Pamida                                60.7      (0.1)      (0.2)
       Total Retail                        $254.8      (0.5)   %  (0.2)  %

     30 Weeks:
       ShopKo                            $1,315.7       2.4    %   2.6   %
       Pamida                               449.7       1.3        1.6
       Total Retail                      $1,765.4       2.1    %   2.3   %

     * Comparable store sales represent sales of those stores open during both
     fiscal years and do not include sales from the ShopKo wholesale optical
     lab.

     **ShopKo division total sales variance reflects sales from one closed
     ShopKo location in FY 2004. Pamida division total sales variance
     reflects sales in the prior year periods from seven locations which have
     been closed and not replaced, and two new Pamida locations opened in
     FY 2003.  Sales variance also reflects sales from three closed Pamida
     locations and one new location in FY 2004.