Investor Contact:
Russell Solt, Venture Stores, Inc.
(314) 281-7800

Media Contact:
Randy Myers or Tom Goyda, Shandwick
(314) 436-6565

For Immediate Release :

O'Fallon, MO, November 5, 1997 -- Venture Stores, Inc. today reported that same-store sales for the four weeks ended October 25, 1997 increased 0.4 percent. This marks the company's first monthly store-for-stores sales increase in nearly two and a half years, another significant step forward in its sales trend.

"Venture's same-store sales gain for October provides the best evidence to date that our strategies designed to expand our customer base are being well received by shoppers," said Robert N. Wildrick, the company's chairman and chief executive officer. "Our primary goal is to continue to increase Venture's share of shopping, which we expect will lead to profitability."

Wildrick pointed to several key trends that contributed to Venture's same-store sales gain for October and other significant developments, including:

• Same-store sales gains during October for Venture's locations in Kansas City, St. Louis and Oklahoma City, and flat comparisons for its Chicago-area stores. Those four markets represented 76.7 percent of the company's total sales for the month.
• Venture saw sales results turn around for several apparel departments, including shoes, intimate apparel, ladies sportswear and men's, which all turned in store-for-store sales gains.
• The rebound in softlines sales was also reflected in the fact that these categories accounted for 34.8 percent of total sales in October, versus 32.2 percent year-to-date. On a same store basis, softlines sales for the month were 13.8 percent ahead of the year-to-date trend.
• Hardlines departments continued to deliver solid sales results, with luggage, outdoor/leisure, furniture/home decor, toys and marketplace (convenience foods) registering same-store sales increases.
• Venture continued to show improved inventory levels as planned, with same-store inventories at the end of October 1997 down approximately 9.0 percent compared with the end of October 1996.

"The positive sales trend in Venture's softlines departments reflects the intensification of our merchandising efforts and the expanded buying capacity resulting from our more favorable credit facility and stronger cash position," Wildrick noted. "Thanks to the upturn in softlines and the continued success of key hardlines departments, Venture is entering the holiday sales season in its best position in more than two years."

Venture operated 93 stores in October 1997 versus 111 stores during the period in 1996, a decrease of 16.2 percent. Total sales for the month in 1997 declined at a lower rate of 13.4 percent to $84.9 million in October of this year compared with $98.1 million for the four weeks ended October 26, 1996.

Loan Covenants Reset

Venture also announced that BT Commercial Corp. has reset covenants associated with its line of credit for the third and fourth quarters of fiscal 1997.

"Our bank remains firmly behind our efforts to maintain Venture as a viable family value retailer in the markets we serve," said Wildrick. "Their ongoing support reflects the positive results being generated by our strategy to expand Venture's customer base and improve sales."

Third Quarter Results

Venture also reported today a net loss applicable to common shareholders of $27.1 million, or $1.48 per share, for the third quarter of 1997. This compares with a net loss applicable to common shareholders of $9.8 million, or 54 cents per share, in the third quarter of 1996.

Third quarter 1997 total sales were $286.3 million, down 13.3 percent from sales of $330.2 million for the third quarter of 1996. Total sales for September and October of this year reflect a significantly lower number of locations beginning in mid-September as noted earlier. Venture will not report third quarter or year-to-date same-store sales, because the comparisons for July and August were not meaningful due to the effect of liquidation sales activity at 20 stores that were sold.

For the 39 weeks ended October 25, 1997, the company reported a net loss applicable to common shareholders, before nonrecurring and extraordinary items, of $82.9 million, or $4.53 per share, compared to a net loss of $13.2 million, or 73 cents per share, for the same period in 1996 (39 weeks ended October 26, 1996).

The first nine months of 1997 included a second quarter nonrecurring charge of $63.9 million, or $3.50 per share, for selling and closing 20 stores, and an extraordinary pre-tax charge in the first quarter of $3.9 million, or 13 cents per share, primarily for the write-off of unamortized deferred financing costs and prepayment penalties related to the termination of the company's old credit facility. With the nonrecurring charge and extraordinary item included, the year-to-date 1997 net loss applicable to common shareholders was $149.2 million, or $8.16 per share.

Sales for the year-to-date period were $929.2 million, down 8.1 percent from $1,010.9 million for the same period last year, due in part to the reduced number of stores in operation during September and October 1997.

Venture currently operates 93 family value stores in nine states. Venture's common stock is traded on the New York Stock Exchange under the symbol VEN.