March 1, 2002 Mr. Raphael Benaroya Chairman of the Board United Retail Group, Inc. 365 West Passaic Street Rochelle Park, NJ 07662 Re: Employment Agreement, dated November 20, 1998 (as amended, the "Agreement") Dear Mr. Benaroya: I have calculated the...

                                                                 Exhibit 10.4

                         United Retail Group, Inc.
                          000 Xxxx Xxxxxxx Xxxxxx
                      Xxxxxxxx Xxxx, Xxx Xxxxxx 00000



                                              Xxxxx 0, 0000



Xx. Xxxxxxx Xxxxxxxx
Chairman of the Board
United Retail Group, Inc.
000 Xxxx Xxxxxxx Xxxxxx
Xxxxxxxx Xxxx, XX 00000

                  Re:      Employment Agreement, dated November 20, 1998 (as
                           amended, the "Agreement")

Dear Xx. Xxxxxxxx:

         I have calculated the cost of living adjustment in base salary
provided under the Agreement based on data published by the Bureau of Labor
Statistics of the Department of Labor.

         For fiscal 2002, your adjusted annual base salary under the terms
of the Agreement is $633,000.

         As you know, this information was provided to the Board of
Directors earlier today.

                                               Very truly yours,

                                               /s/ Xxx Xxxxxxxx
                                               --------------------
                                               Vice President - Finance

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