<ARTICLE> 5
<LEGEND>
This schedule contains financial information extracted from SEC Form 10-Q and is
qualified in its entirety by reference to such financial statements
</LEGEND>
<CIK> 0000724571
<NAME> FRED'S, INC.
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          FEB-01-1997
<PERIOD-END>                               MAY-04-1996
<CASH>                                           1,011
<SECURITIES>                                         0
<RECEIVABLES>                                    5,860
<ALLOWANCES>                                     (891)
<INVENTORY>                                     93,566
<CURRENT-ASSETS>                               101,915
<PP&E>                                         108,418
<DEPRECIATION>                                (56,792)
<TOTAL-ASSETS>                                 160,689
<CURRENT-LIABILITIES>                           41,037
<BONDS>                                          1,298
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        63,458
<OTHER-SE>                                      53,727
<TOTAL-LIABILITY-AND-EQUITY>                   160,689
<SALES>                                        101,758
<TOTAL-REVENUES>                               101,758
<CGS>                                           73,976
<TOTAL-COSTS>                                   73,976
<OTHER-EXPENSES>                                24,433
<LOSS-PROVISION>                                    34
<INTEREST-EXPENSE>                                  94
<INCOME-PRETAX>                                  3,221
<INCOME-TAX>                                     1,169
<INCOME-CONTINUING>                              2,052
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     2,052
<EPS-PRIMARY>                                     0.22
<EPS-DILUTED>                                     0.22