UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549





                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934




        Date of Report (Date of earliest event reported) December 9, 2002



                                KMART CORPORATION
               (Exact Name of Registrant as Specified in Charter)


     Michigan                         1-327                       38-0729500

 (State or Other                   (Commission                  (IRS Employer
   Jurisdiction                    File Number)              Identification No.)
of Incorporation)



3100 West Big Beaver Road, Troy, Michigan                               48084
(Address of Principal Executive Offices)                              (ZIP Code)

(Registrant's Telephone Number, Including Area Code) (248) 463-1000



                                 Not Applicable
          (Former Name or Former Address, if Changed Since Last Report)


<PAGE>
ITEM 5.  Other Items.

Kmart Corporation ("Kmart") issued a press release, dated December 9, 2002, in
which it announced its intention to restate its financial statements for prior
fiscal years, as well as the first two quarters of 2002, to reflect certain
adjustments identified as a result of the Company's ongoing review of its
accounting practices and procedures. A copy of the press release is attached
hereto.

ITEM 7.  Exhibit.

(c)      Exhibit No.      Description

         99.1             Kmart Press Release dated December 9, 2002, entitled
                          "Kmart to Restate Financial Statements to Reflect
                          Out-of-Period Adjustments"


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


Date:    December 10, 2002                  KMART CORPORATION



                                            By: /s/ A.A. Koch
                                                -----------------------
                                                A.A. Koch
                                                Chief Financial Officer
<PAGE>


                                  EXHIBIT INDEX

Exhibit No.                Description

         99.1             Kmart Press Release dated December 9, 2002, entitled
                          "Kmart to Restate Financial Statements to Reflect
                          Out-of-Period Adjustments"
<PAGE>
                                                                    EXHIBIT 99.1


                                                               KMART CORPORATION
                                                                          (Logo)

Contact:

         Kmart Media Relations
         (248) 463-1021



                      KMART TO RESTATE FINANCIAL STATEMENTS
                      TO REFLECT OUT-OF-PERIOD ADJUSTMENTS

              Anticipates Positive Impact on 2002 Reported Results;
                             No Impact on Liquidity

TROY, Mich., December 9, 2002 - Kmart Corporation (NYSE: KM) announced today it
intends to restate its financial statements for prior fiscal years, as well as
the first two quarters of 2002, to reflect certain adjustments identified as a
result of the Company's ongoing review of its accounting practices and
procedures. Certain of these adjustments were identified as out-of-period
adjustments during the preparation of Kmart's third quarter report on Form 10-Q,
while others were previously identified and described in the Company's second
quarter report on Form 10-Q, filed with the Securities and Exchange Commission
(SEC) on September 16, 2002. Upon review of the aggregate impact of the new, as
well as the previously disclosed and recorded adjustments, Kmart concluded that
restating its financial statements for the prior periods was appropriate because
the aggregate adjustment was material to its 2002 fiscal year results.

Kmart noted that none of the adjustments should impact the Company's liquidity
or increase obligations requiring a future use of cash. As of December 6, 2002,
Kmart had $495 million of borrowings outstanding and had utilized $330 million
of its Debtor In Possession (DIP) credit facility for letters of credit. Its
total DIP availability as of that date was $1.07 billion. The Company has now
passed the peak borrowing period for its seasonal inventory build, has begun to
repay its outstanding DIP borrowings and anticipates that all such borrowings
will have been repaid before the end of the month. The Company does not expect
the restatement to affect the future availability of funds under its DIP credit
facility.

James B. Adamson, Chairman and Chief Executive Officer of Kmart, said, "In
accordance with our continuing commitment to enhance our accounting practices
and procedures, we have decided to restate our financial statements to ensure
that the most accurate and transparent information is available to readers of
our financial statements. We do not expect this restatement to impact our
progress in any way. We remain focused on finalizing a comprehensive business
plan and taking other actions necessary to fulfill our goal of filing a proposed
plan of reorganization and emerging from Chapter 11 court protection as soon as
practicable."

On a preliminary basis, the Company believes that the net impact of the
adjustments would be to decrease the Company's net loss for the previously
reported 26-week period ended July 30, 2002 by less than $100 million. The
Company anticipates that these adjustments would increase the previously
reported net loss or decrease reported net income for the prior three fiscal
years by less than $100 million on an aggregate basis as compared to a
previously reported aggregate net loss for this three-year period of
approximately $2 billion. In addition, the Company anticipates recording an
adjustment to its 1999 fiscal year opening retained earnings balance to reflect
adjustments attributable to fiscal years 1998 and prior. Further information as
to the impact on particular periods will be provided as the Company completes
the restatement.

The adjustments identified by the Company relate to:

o        An understatement of historical accruals for certain leases with
         varying rent payments and a related understatement of historical rent
         expense;

o        A software programming error in Kmart's accounts payable system that
         resulted in some paid invoices awaiting a store report of delivery not
         being appropriately treated in the Company's financial statements. This
         error, restricted to a single vendor with unique billing arrangements,
         resulted in an understatement of "Cost of Sales" since 1999;

o        Adjustments, as previously disclosed in the 2002 second quarter report
         on Form 10-Q, for certain costs formerly capitalized into inventory.
         Inventory included amounts added for internal purposes to analyze gross
         margin on a comparable basis across all business units and to optimize
         purchasing decisions. These amounts are commonly referred to in the
         retail industry as "inventory loads," and should have been fully
         eliminated for external reporting purposes to the extent the related
         inventory remained unsold at the end of the period; and

o        The premature recording, as previously disclosed in the 2002 second
         quarter report on Form 10-Q, of vendor allowance transactions in fiscal
         year 2000 and prior fiscal years.

In addition, given the restatement for the items noted above, Kmart will also
adjust previously reported financial results for miscellaneous immaterial items
that were identified and previously recorded in the ordinary course of business.
These items will now be recorded in the appropriate fiscal periods.
Kmart currently expects to timely file its Quarterly Report on Form 10-Q for the
third quarter ended October 30, 2002, and to file at such time its Monthly
Operating Reports for October and November 2002. The Company expects to file an
amended Annual Report on Form 10-K/A for the 2001 fiscal year and Quarterly
Reports on Form 10-Q/A for the first two quarters of the 2002 fiscal year as
soon as practicable.

Kmart Corporation is a mass merchandising company that serves America with more
than 1,800 Kmart and Kmart SuperCenter retail outlets and through its e-commerce
shopping site, www.kmart.com. Kmart in 2001 had sales of $36 billion. Cautionary
Statement Regarding Forward-Looking Information

Statements made by Kmart which address activities, events or developments that
we expect or anticipate may occur in the future are forward-looking statements.
Such forward-looking statements are and will be, as the case may be, subject to
many risks and uncertainties, including, but not limited to, Kmart's having
filed for bankruptcy and factors relating to Kmart's operations and the business
environment in which Kmart operates, which may cause the actual results of Kmart
to be materially different from any future results expressed or implied by such
forward-looking statements. Factors that could cause actual results to differ
materially from these forward-looking statements include those set forth in
Kmart's Annual Report on Form 10-K for the fiscal year ended January 30, 2002,
Kmart's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2002
or in other filings made, from time to time, by Kmart with the Securities and
Exchange Commission (the "Company Filings"). The forward-looking statements
speak only as of the date when made and Kmart does not undertake to update such
statements.

Similarly, these and other factors set forth in the Company Filings, including
the terms of any reorganization plan ultimately confirmed, can affect the value
of our various pre-petition liabilities, common stock and/or other equity
securities. No assurance can be given as to what values, if any, will be
ascribed in the bankruptcy proceedings to each of these constituencies. A plan
of reorganization could result in holders of Kmart common stock receiving no
distribution on account of their interest and cancellation of their interests.
Holders of Kmart common stock should assume that they could receive little or no
value as part of a plan of reorganization. In light of the foregoing, Kmart
considers the value of the common stock to be highly speculative.

Accordingly, we urge that appropriate caution be exercised with respect to
existing and future investments in Kmart common stock or in any claims relating
to pre-petition liabilities and/or other Kmart securities.
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{"company-data": {"conformed-name": "KMART CORP", "cik": "0000056824", "assigned-sic": "5331", "irs-number": "380729500", "state-of-incorporation": "MI", "fiscal-year-end": "0129"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-00327", "film-number": "02853328"}, "business-address": {"street1": "3100 W BIG BEAVER RD", "city": "TROY", "state": "MI", "zip": "48084", "phone": "2486431000"}, "mail-address": {"street1": "3100 W BIG BEAVER ROAD", "city": "TROY", "state": "MI", "zip": "48084"}, "former-company": {"former-conformed-name": "KRESGE S S CO", "date-changed": "19770921"}}
UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

        Date of Report (Date of earliest event reported) December 9, 2002

                                KMART CORPORATION
               (Exact Name of Registrant as Specified in Charter)

     Michigan                         1-327                       38-0729500

 (State or Other                   (Commission                  (IRS Employer
   Jurisdiction                    File Number)              Identification No.)
of Incorporation)

3100 West Big Beaver Road, Troy, Michigan                               48084
(Address of Principal Executive Offices)                              (ZIP Code)

(Registrant's Telephone Number, Including Area Code) (248) 463-1000

                                 Not Applicable
          (Former Name or Former Address, if Changed Since Last Report)
ITEM 5.  Other Items.

Kmart Corporation ("Kmart") issued a press release, dated December 9, 2002, in
which it announced its intention to restate its financial statements for prior
fiscal years, as well as the first two quarters of 2002, to reflect certain
adjustments identified as a result of the Company's ongoing review of its
accounting practices and procedures. A copy of the press release is attached
hereto.

ITEM 7.  Exhibit.

(c)      Exhibit No.      Description

         99.1             Kmart Press Release dated December 9, 2002, entitled
                          "Kmart to Restate Financial Statements to Reflect
                          Out-of-Period Adjustments"

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Date:    December 10, 2002                  KMART CORPORATION

                                            By: /s/ A.A. Koch
                                                -----------------------
                                                A.A. Koch
                                                Chief Financial Officer
EXHIBIT INDEX

Exhibit No.                Description

         99.1             Kmart Press Release dated December 9, 2002, entitled
                          "Kmart to Restate Financial Statements to Reflect
                          Out-of-Period Adjustments"
EXHIBIT 99.1

                                                               KMART CORPORATION
                                                                          (Logo)

Contact:

         Kmart Media Relations
         (248) 463-1021

                      KMART TO RESTATE FINANCIAL STATEMENTS
                      TO REFLECT OUT-OF-PERIOD ADJUSTMENTS

              Anticipates Positive Impact on 2002 Reported Results;
                             No Impact on Liquidity

TROY, Mich., December 9, 2002 - Kmart Corporation (NYSE: KM) announced today it
intends to restate its financial statements for prior fiscal years, as well as
the first two quarters of 2002, to reflect certain adjustments identified as a
result of the Company's ongoing review of its accounting practices and
procedures. Certain of these adjustments were identified as out-of-period
adjustments during the preparation of Kmart's third quarter report on Form 10-Q,
while others were previously identified and described in the Company's second
quarter report on Form 10-Q, filed with the Securities and Exchange Commission
(SEC) on September 16, 2002. Upon review of the aggregate impact of the new, as
well as the previously disclosed and recorded adjustments, Kmart concluded that
restating its financial statements for the prior periods was appropriate because
the aggregate adjustment was material to its 2002 fiscal year results.

Kmart noted that none of the adjustments should impact the Company's liquidity
or increase obligations requiring a future use of cash. As of December 6, 2002,
Kmart had $495 million of borrowings outstanding and had utilized $330 million
of its Debtor In Possession (DIP) credit facility for letters of credit. Its
total DIP availability as of that date was $1.07 billion. The Company has now
passed the peak borrowing period for its seasonal inventory build, has begun to
repay its outstanding DIP borrowings and anticipates that all such borrowings
will have been repaid before the end of the month. The Company does not expect
the restatement to affect the future availability of funds under its DIP credit
facility.

James B. Adamson, Chairman and Chief Executive Officer of Kmart, said, "In
accordance with our continuing commitment to enhance our accounting practices
and procedures, we have decided to restate our financial statements to ensure
that the most accurate and transparent information is available to readers of
our financial statements. We do not expect this restatement to impact our
progress in any way. We remain focused on finalizing a comprehensive business
plan and taking other actions necessary to fulfill our goal of filing a proposed
plan of reorganization and emerging from Chapter 11 court protection as soon as
practicable."

On a preliminary basis, the Company believes that the net impact of the
adjustments would be to decrease the Company's net loss for the previously
reported 26-week period ended July 30, 2002 by less than $100 million. The
Company anticipates that these adjustments would increase the previously
reported net loss or decrease reported net income for the prior three fiscal
years by less than $100 million on an aggregate basis as compared to a
previously reported aggregate net loss for this three-year period of
approximately $2 billion. In addition, the Company anticipates recording an
adjustment to its 1999 fiscal year opening retained earnings balance to reflect
adjustments attributable to fiscal years 1998 and prior. Further information as
to the impact on particular periods will be provided as the Company completes
the restatement.

The adjustments identified by the Company relate to:

o        An understatement of historical accruals for certain leases with
         varying rent payments and a related understatement of historical rent
         expense;

o        A software programming error in Kmart's accounts payable system that
         resulted in some paid invoices awaiting a store report of delivery not
         being appropriately treated in the Company's financial statements. This
         error, restricted to a single vendor with unique billing arrangements,
         resulted in an understatement of "Cost of Sales" since 1999;

o        Adjustments, as previously disclosed in the 2002 second quarter report
         on Form 10-Q, for certain costs formerly capitalized into inventory.
         Inventory included amounts added for internal purposes to analyze gross
         margin on a comparable basis across all business units and to optimize
         purchasing decisions. These amounts are commonly referred to in the
         retail industry as "inventory loads," and should have been fully
         eliminated for external reporting purposes to the extent the related
         inventory remained unsold at the end of the period; and

o        The premature recording, as previously disclosed in the 2002 second
         quarter report on Form 10-Q, of vendor allowance transactions in fiscal
         year 2000 and prior fiscal years.

In addition, given the restatement for the items noted above, Kmart will also
adjust previously reported financial results for miscellaneous immaterial items
that were identified and previously recorded in the ordinary course of business.
These items will now be recorded in the appropriate fiscal periods.
Kmart currently expects to timely file its Quarterly Report on Form 10-Q for the
third quarter ended October 30, 2002, and to file at such time its Monthly
Operating Reports for October and November 2002. The Company expects to file an
amended Annual Report on Form 10-K/A for the 2001 fiscal year and Quarterly
Reports on Form 10-Q/A for the first two quarters of the 2002 fiscal year as
soon as practicable.

Kmart Corporation is a mass merchandising company that serves America with more
than 1,800 Kmart and Kmart SuperCenter retail outlets and through its e-commerce
shopping site, www.kmart.com. Kmart in 2001 had sales of $36 billion. Cautionary
Statement Regarding Forward-Looking Information

Statements made by Kmart which address activities, events or developments that
we expect or anticipate may occur in the future are forward-looking statements.
Such forward-looking statements are and will be, as the case may be, subject to
many risks and uncertainties, including, but not limited to, Kmart's having
filed for bankruptcy and factors relating to Kmart's operations and the business
environment in which Kmart operates, which may cause the actual results of Kmart
to be materially different from any future results expressed or implied by such
forward-looking statements. Factors that could cause actual results to differ
materially from these forward-looking statements include those set forth in
Kmart's Annual Report on Form 10-K for the fiscal year ended January 30, 2002,
Kmart's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2002
or in other filings made, from time to time, by Kmart with the Securities and
Exchange Commission (the "Company Filings"). The forward-looking statements
speak only as of the date when made and Kmart does not undertake to update such
statements.

Similarly, these and other factors set forth in the Company Filings, including
the terms of any reorganization plan ultimately confirmed, can affect the value
of our various pre-petition liabilities, common stock and/or other equity
securities. No assurance can be given as to what values, if any, will be
ascribed in the bankruptcy proceedings to each of these constituencies. A plan
of reorganization could result in holders of Kmart common stock receiving no
distribution on account of their interest and cancellation of their interests.
Holders of Kmart common stock should assume that they could receive little or no
value as part of a plan of reorganization. In light of the foregoing, Kmart
considers the value of the common stock to be highly speculative.

Accordingly, we urge that appropriate caution be exercised with respect to
existing and future investments in Kmart common stock or in any claims relating
to pre-petition liabilities and/or other Kmart securities.