<ARTICLE> 5
<LEGEND>
This schedule contains summary financial infrmation extracted from SEC Form 10-K
and is qualified is its entirety by reference to such financial statments.
</LEGEND>
<CIK> 0000724571
<NAME> FRED'S, INC.
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                           FEB-3-1996
<PERIOD-END>                                FEB-3-1996
<CASH>                                           5,496
<SECURITIES>                                         0
<RECEIVABLES>                                    5,972
<ALLOWANCES>                                     (857)
<INVENTORY>                                     85,211
<CURRENT-ASSETS>                                98,903
<PP&E>                                         107,725
<DEPRECIATION>                                (55,484)
<TOTAL-ASSETS>                                 158,023
<CURRENT-LIABILITIES>                           39,554
<BONDS>                                          1,779
<COMMON>                                        63,458
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                      52,112
<TOTAL-LIABILITY-AND-EQUITY>                   158,023
<SALES>                                        410,086
<TOTAL-REVENUES>                               410,086
<CGS>                                          305,668
<TOTAL-COSTS>                                  305,668
<OTHER-EXPENSES>                                99,052
<LOSS-PROVISION>                                   595
<INTEREST-EXPENSE>                                 434
<INCOME-PRETAX>                                  4,337
<INCOME-TAX>                                     1,604
<INCOME-CONTINUING>                              2,733
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     2,733
<EPS-PRIMARY>                                      .29
<EPS-DILUTED>                                      .29