<ARTICLE>                     5
<LEGEND>
     This schedule contains summary financial information extracted from the
     Service Merchandise Company, Inc. Form 10-Q for the nine periods ended
     September 29, 1996 and is qualified in its entirety by reference to such
     financial statements detailed in Part I of the Form 10-Q. 
</LEGEND>                      
<RESTATED>                        
<MULTIPLIER>                                 1,000
                                                                  
                                                                
<PERIOD-TYPE>                                9-MOS                    9-MOS
<FISCAL-YEAR-END>                            DEC-29-1996              DEC-31-1995
<PERIOD-START>                               JAN-01-1996              JAN-02-1995
<PERIOD-END>                                 SEP-29-1996              OCT-01-1995
<CASH>                                            21,390                   18,901
<SECURITIES>                                           0                        0
<RECEIVABLES>                                     42,478                   39,478
<ALLOWANCES>                                       2,966                    3,022
<INVENTORY>                                    1,328,761                1,328,436    
<CURRENT-ASSETS>                               1,464,139                1,461,036
<PP&E>                                         1,198,478                1,192,861
<DEPRECIATION>                                   602,537                  572,151 
<TOTAL-ASSETS>                                 2,082,464                2,104,640
<CURRENT-LIABILITIES>                          1,113,721                1,173,779<F1>
<BONDS>                                          616,229                  622,977
<PREFERRED-MANDATORY>                                  0                        0
<PREFERRED>                                            0                        0
<COMMON>                                          99,748<F2>               99,670<F2>     
<OTHER-SE>                                       298,754                  255,634 
<TOTAL-LIABILITY-AND-EQUITY>                   2,082,464                2,104,640   
<SALES>                                        2,313,940                2,332,035
<TOTAL-REVENUES>                               2,313,940                2,332,035
<CGS>                                          1,770,213                1,772,284
<TOTAL-COSTS>                                  1,770,213                1,772,284
<OTHER-EXPENSES>                                 553,503<F3>              552,165<F3>
<LOSS-PROVISION>                                       0                        0
<INTEREST-EXPENSE>                                52,903                   57,914
<INCOME-PRETAX>                                  (62,679)                 (50,328) 
<INCOME-TAX>                                     (23,818)                 (19,628)
<INCOME-CONTINUING>                              (38,861)                 (30,700)
<DISCONTINUED>                                         0                        0
<EXTRAORDINARY>                                        0                        0
<CHANGES>                                              0                        0
<NET-INCOME>                                     (38,861)                 (30,700)
<EPS-PRIMARY>                                      (0.38)                   (0.30)
<EPS-DILUTED>                                      (0.38)                   (0.30)
<FN>
<F1> Certain prior period amounts have been reclassified for comparative purposes.
<F2> Amount represents the number of shares of $0.50 par value common stock issued and
     outstanding.
<F3> Amount includes I) depreciation and amortization and II) selling, general and
     administrative expenses.
</FN>