ShopKo Stores, Inc. reported consolidated sales for the four weeks ended May 31, 2003 decreased 3.2 percent to $244.2 million from $252.3 million during the same period last year. Consolidated comparable store sales decreased 3.1 percent.

Sales Summary by Business Segment (dollars in millions)

     Retail Segments
                                Period Ended                % Change
     4 Weeks:                     05/31/03          Total**          Comp*

       ShopKo                      $179.3           (4.7)%           (4.7)%
       Pamida                        64.9            1.1              1.8
       Total Retail                $244.2           (3.2)%           (3.1)%

     17 Weeks:
       ShopKo                      $709.8           (4.2)%           (4.2)%
       Pamida                       242.3            0.8              1.4
       Total Retail                $952.1           (3.0)%           (2.8)%

    *  Comparable store sales represent sales of those stores open during both
    fiscal years.
    ** Pamida division total sales variance reflects sales in the prior year
    periods from three locations which have been closed and not replaced, as
    well as one location temporarily closed due to severe tornado damage
    incurred in May, 2003.

June Outlook

The Company expects consolidated comparable store sales for the month of June to be negative low single digits.