<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 28,
 1997 and is qualified in its entirety by reference to such financial statements
 detailed in Part I of the Form 10-Q.
</LEGEND>
<MULTIPLIER>                                   1,000
<CURRENCY>                                     $
       
                                            
<PERIOD-TYPE>                                  9-MOS
<FISCAL-YEAR-END>                              DEC-28-1997
<PERIOD-START>                                 DEC-29-1996
<PERIOD-END>                                  SEP-28-1997
<EXCHANGE-RATE>                                          1
<CASH>                                              45,900
<SECURITIES>                                             0
<RECEIVABLES>                                       42,510
<ALLOWANCES>                                         2,541
<INVENTORY>                                      1,165,586
<CURRENT-ASSETS>                                 1,360,904
<PP&E>                                           1,158,673
<DEPRECIATION>                                     623,139
<TOTAL-ASSETS>                                   1,934,816
<CURRENT-LIABILITIES>                              827,324
<BONDS>                                            768,034
<PREFERRED-MANDATORY>                                    0
<PREFERRED>                                              0
<COMMON>                                            99,800<F1>
<OTHER-SE>                                         228,153
<TOTAL-LIABILITY-AND-EQUITY>                     1,934,816
<SALES>                                          2,219,905
<TOTAL-REVENUES>                                 2,219,905
<CGS>                                            1,730,887
<TOTAL-COSTS>                                    1,730,887
<OTHER-EXPENSES>                                   671,298<F2>
<LOSS-PROVISION>                                         0
<INTEREST-EXPENSE>                                  55,650
<INCOME-PRETAX>                                   (235,399)
<INCOME-TAX>                                       (88,275)
<INCOME-CONTINUING>                               (147,124)
<DISCONTINUED>                                           0
<EXTRAORDINARY>                                     (2,643)
<CHANGES>                                                0
<NET-INCOME>                                      (149,767)
<EPS-PRIMARY>                                        (1.51)
<EPS-DILUTED>                                        (1.51)
<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>