<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Financial Statements of Fred's, Inc. 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>                          JAN-31-1998
<PERIOD-START>                              FEB-2-1997
<PERIOD-END>                                MAY-3-1997
<CASH>                                           7,541
<SECURITIES>                                         0
<RECEIVABLES>                                    5,730
<ALLOWANCES>                                     (725)
<INVENTORY>                                     92,914
<CURRENT-ASSETS>                               110,998
<PP&E>                                         109,314
<DEPRECIATION>                                (59,411)
<TOTAL-ASSETS>                                 166,388
<CURRENT-LIABILITIES>                           41,587
<BONDS>                                          1,532
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        63,962
<OTHER-SE>                                      57,905
<TOTAL-LIABILITY-AND-EQUITY>                   166,388
<SALES>                                        112,668
<TOTAL-REVENUES>                               112,668
<CGS>                                           81,594
<TOTAL-COSTS>                                   81,594
<OTHER-EXPENSES>                                26,800
<LOSS-PROVISION>                                     7
<INTEREST-EXPENSE>                                (21)
<INCOME-PRETAX>                                  4,288
<INCOME-TAX>                                     1,608
<INCOME-CONTINUING>                              2,680
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     2,680
<EPS-PRIMARY>                                     0.29
<EPS-DILUTED>                                     0.29