Exhibit 23

INDEPENDENT AUDITORS' CONSENT

We consent to the  incorporation  by reference in  Registration  Statement  Nos.
33-60201,  33-7079,  33-11340,  33-30983 and 33-50185 on Form S-8 of our reports
dated February 6, 1998, appearing in and incorporated by reference in the Annual
Report on Form 10-K of Service  Merchandise  Company,  Inc.  for the fiscal year
ended December 28, 1997.


 /s/  Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Nashville, Tennessee
March 27, 1998