ShopKo Stores reported consolidated sales for the five weeks ended January 1, 2005 decreased 5.5 percent to $440.7 million from $466.5 million during the same period last year. Consolidated comparable store sales decreased 5.3 percent. Although December sales were below expectations, the company experienced improved gross margin rates.

           Sales Summary by Business Segment (dollars in millions)

     Retail Segments              Period Ended              % Change
     5 Weeks:                         1/1/05         Total**         Comp*
      ShopKo                           $336.0        (6.7)%          (6.3)%
      Pamida                            104.7        (1.7)           (1.7)
      Total Retail                     $440.7        (5.5)%          (5.3)%

     48 Weeks:
      ShopKo                         $2,211.6        (1.0)%          (0.7)%
      Pamida                            758.9         1.0             1.0
      Total Retail                   $2,970.5        (0.5)%          (0.3)%

     *  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 fiscal 2004 and one new ShopKo Express location.
        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 fiscal 2003.  Sales variance
        also reflects sales from five closed Pamida locations and seven new
        locations in fiscal 2004.

Consolidated comparable store sales for the month of January are expected to be in the negative low single digit range.