FOR IMMEDIATE RELEASE

Investor Contact:
Russell Solt, Venture Stores
314/281-7800

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

August 14, 1997

Level Sales Trend Provides Encouraging Sign for Future

O'Fallon, MO, August 14, 1997 -- Venture Stores, Inc. today reported a net loss applicable to common shareholders, before nonrecurring charges, of $39.7 million, or $2.17 per share, for the second quarter of 1997, including a loss of 87 cents per share due to unrealizable deferred tax benefits. This compares with a net loss applicable to common shareholders of $4.4 million, or 24 cents per share, in the second quarter of 1996.

The second quarter results were within the range previously forecast by the company. Venture's performance was adversely affected by tighter credit limits and an interruption in merchandise flow, particularly apparel, which had a negative impact on merchandise mix and margins during the period.

Second quarter 1997 total sales were $328.5 million, down 0.3% from sales of $329.4 million for the second quarter of 1996. Robert N. Wildrick, Venture chairman and CEO, said Venture is encouraged by the continued improvement in the company's total sales over the past few months. The family value retailer reported back-to-back total sales increases for June and July 1997.

Wildrick added, "Venture has taken major steps to lay the groundwork for improved future performance," citing the recent sale and closing of 20 unprofitable stores for $38 million. Additionally, Venture closed on a $135 million sale-leaseback agreement with Kimco Realty Corp. "These two initiatives, with a combined value of about $173 million, will help improve performance and provide a substantial cash infusion to help support our continuing repositioning." He noted that the 20 stores being sold accounted for approximately 40 percent of Venture's 1996 pre-tax loss, and that the company is in compliance with all bank covenants.

The 13 weeks ended July 26, 1997 included a nonrecurring charge of $63.9 million, or $3.50 per share, for costs associated with selling and closing the 20 stores, including a loss of $1.34 per share of unrealizable deferred tax benefits. Including this nonrecurring charge, the second quarter 1997 net loss applicable to common shareholders was $103.6 million, or $5.67 per share.

For the 26 weeks ended July 26, 1997, the company reported a net loss applicable to common shareholders, before nonrecurring and extraordinary items, of $55.8 million, or $3.05 per share, compared to a net loss of $3.3 million, or 19 cents per share, for the same period in 1996 (26 weeks ended July 27, 1996). The first half of 1997 included the second quarter nonrecurring charge discussed above 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 $122.2 million, or $6.68 per share.

Sales for the year-to-date period were $642.9 million, down 5.5% from $680.7 million for the same period last year.

After the closing of the 20 stores, Venture will operate 93 family value stores in nine states. Venture's common stock is traded on the New York Stock Exchange under the symbol VEN.