DUCK Alco Stores, Inc. (MM)

Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK) today announced that sales from continuing operations for the most recent fiscal five-week period ending October 3, 2010, decreased 0.6% to $41.1 million compared to $41.4 million in the prior-year month. Same-store sales decreased 2.3%. 

Sales year-to-date decreased 3.1% to $301.5 million compared to prior-year sales of $311.1 million, and same-store sales decreased 4.2%.

Rich Wilson, President and Chief Executive Officer, commented, "While September same-store sales were negative, improvement in the trend continues. Sales in the month were impacted by our store re-set initiative, which is now completed, and the integration of more than 400 new items in the food and consumables departments. Consumers also remain cautious, and our updated offering better reflects this economic reality."

Mr. Wilson added, "We have expanded our food, paper and household cleaning assortments and improved our value proposition with the introduction of the 'Best Choice' and 'Always Save' brands. The remerchandising of ALCO stores supports two of our most important strategies: to increase frequency of customer traffic and to provide better value for ALCO customers. We believe our initiative will drive top-line results by building our customer base with more value, better service and exciting products."

About Duckwall-ALCO Stores, Inc.

Duckwall-ALCO Stores, Inc. is a regional broad line retailer that specializes in meeting the needs of smaller, underserved communities across 23 states, primarily in the central United States. The Company offers an exceptional selection of quality products and recognized brand names at reasonable prices. Its specialty is delivering those products with the friendly, personal service its customers have come to expect. With 256 stores, Duckwall-ALCO Stores is proud to have continually provided excellent products at good value prices to its customers for 109 years. To learn more about Duckwall-ALCO Stores, Inc. visit www.ALCOstores.com.

The Duckwall-ALCO Stores, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5865

Forward-looking statements

This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 ("the Act"). Any forward-looking statements are made by the Company in good faith, pursuant to the safe-harbor provisions of the Act. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments, and Company performance. Factors which could significantly change results include but are not limited to: sales performance, expense levels, competitive activity, interest rates, changes in the Company's financial condition, and factors affecting the retail category in general. Additional information regarding these and other factors may be included in the Company's 10-Q filings and other public documents, copies of which are available from the Company on request and are available from the United States Securities and Exchange Commission.

CONTACT:  Duckwall-ALCO Stores, Inc.
          Wayne S. Peterson, Senior Vice President - Chief Financial 
           Officer
          785-263-3350 X164
          wpeterson@ALCOstores.com

          Hagen and Partners
          Debbie Hagen
          913-652-6547
          dhagen@hagenandpartners.com