ShopKo September Comps Decline 1.2%

ShopKo Stores Inc. reported consolidated sales for the five weeks ended October 2, 2004 decreased 1.5% to $262.9 million from $266.8 million during the same period last year. Consolidated comparable store sales decreased 1.2%.

           Sales Summary by Business Segment (dollars in millions)

    Retail Segments               Period Ended               % Change
    5 Weeks:                        10/02/04           Total**        Comp*

      ShopKo                         $192.9            (2.0)%        (1.6)%
      Pamida                           70.0             0.2           0.1
      Total Retail                   $262.9            (1.5)%        (1.2)%

    35 Weeks:
      ShopKo                       $1,508.6             1.8%          2.0%
      Pamida                          519.7             1.1           1.4
      Total Retail                 $2,028.3             1.6%          1.9%


    *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.  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 three closed Pamida
     locations and five new locations in fiscal 2004.

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

Due to lower than expected sales performance, the company now expects third quarter earnings to be at the low end of the previously provided range of $0.03 to $0.08 per share.