<ARTICLE>                     5
<LEGEND>
This schedule contains summary financial  information extracted from the Service
Merchandise Company,  Inc. Form 10-Q for the six periods ended June 29, 1997 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
<CURRENCY>                                     $
       
                                            
<PERIOD-TYPE>                                  6-MOS
<FISCAL-YEAR-END>                              DEC-28-1997
<PERIOD-START>                                 DEC-29-1996
<PERIOD-END>                                   JUN-29-1997
<EXCHANGE-RATE>                                          1
<CASH>                                              57,486
<SECURITIES>                                             0
<RECEIVABLES>                                       47,702
<ALLOWANCES>                                         3,125
<INVENTORY>                                        956,674
<CURRENT-ASSETS>                                 1,137,928
<PP&E>                                           1,176,458
<DEPRECIATION>                                     619,108
<TOTAL-ASSETS>                                   1,720,389
<CURRENT-LIABILITIES>                              689,268
<BONDS>                                            654,493
<PREFERRED-MANDATORY>                                    0
<PREFERRED>                                              0
<COMMON>                                            99,812<F1>
<OTHER-SE>                                         252,956
<TOTAL-LIABILITY-AND-EQUITY>                     1,720,389
<SALES>                                          1,563,761
<TOTAL-REVENUES>                                 1,563,761
<CGS>                                            1,225,933
<TOTAL-COSTS>                                    1,225,933
<OTHER-EXPENSES>                                   501,209<F2>
<LOSS-PROVISION>                                         0
<INTEREST-EXPENSE>                                  36,241
<INCOME-PRETAX>                                   (199,622)
<INCOME-TAX>                                       (74,858)
<INCOME-CONTINUING>                               (124,764)
<DISCONTINUED>                                           0
<EXTRAORDINARY>                                          0
<CHANGES>                                                0
<NET-INCOME>                                      (124,764)
<EPS-PRIMARY>                                        (1.26)
<EPS-DILUTED>                                        (1.26)
<FN>
<F1>AMOUNT REPRESENTS THE NUMBER OF SHARES OF $0.50 PAR VALUE COMMON STOCK
    ISSUED AND OUTSTANDING.
<F2>AMOUNT INCLUDES I) DEPRECIATION AND AMORTIZATION II) SELLING, GENERAL
    AND ADMINISTRATIVE EXPENSES AND III) RESTRUCTURING CHARGE INCURRED IN THE 
    FIRST QUARTER OF 1997.
</FN>