ShopKo Stores Sees 7.2% Comp Sales Decline in May

ShopKo Stores, Inc. reported consolidated sales for the four weeks ended May 28, 2005 decreased 6.7% to $235.1 million from $251.9 million during the same period last year. Consolidated comparable store sales decreased 7.2%.

           Sales Summary by Business Segment (dollars in millions)

     Retail Segments             Period Ended               % Change
     4 Weeks:                        5/28/05           Total**        Comp*
       ShopKo                         $170.6           (7.7)%        (7.9)%
       Pamida                           64.5           (3.8)         (5.0)
       Total Retail                   $235.1           (6.7)%        (7.2)%

     17 Weeks:
       ShopKo                         $688.5           (6.7)%        (6.9)%
       Pamida                          249.9            0.3          (1.1)
       Total Retail                   $938.4           (4.9)%        (5.4)%

* 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 three new ShopKo Express Rx locations. Pamida division total sales variance reflects sales from five closed Pamida locations and seven new locations in fiscal 2004. Sales variance also reflects sales from one closed Pamida location and three new locations in fiscal 2005.

The company expects consolidated comparable store sales for the month of June to be in the negative low single digit range.