<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED FINANCIAL STATEMENTS OF FREDS, INC. FOR THE QUARTER ENDED AUGUST 2,
1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS."
</LEGEND>
<CIK> 0000724571
<NAME> FRED'S, INC.
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          JAN-31-1998
<PERIOD-START>                              FEB-2-1997
<PERIOD-END>                                AUG-2-1997
<CASH>                                           6,000
<SECURITIES>                                         0
<RECEIVABLES>                                    4,960
<ALLOWANCES>                                     (568)
<INVENTORY>                                     89,620
<CURRENT-ASSETS>                               105,345
<PP&E>                                         111,365
<DEPRECIATION>                                (60,707)
<TOTAL-ASSETS>                                 161,686
<CURRENT-LIABILITIES>                           36,055
<BONDS>                                          1,479
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        63,890
<OTHER-SE>                                      58,803
<TOTAL-LIABILITY-AND-EQUITY>                   161,686
<SALES>                                        222,864
<TOTAL-REVENUES>                               222,864
<CGS>                                          161,611
<TOTAL-COSTS>                                  161,611
<OTHER-EXPENSES>                                55,031
<LOSS-PROVISION>                                     9
<INTEREST-EXPENSE>                                (76)
<INCOME-PRETAX>                                  6,289
<INCOME-TAX>                                     2,358
<INCOME-CONTINUING>                              3,931
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     3,931
<EPS-PRIMARY>                                    $0.42
<EPS-DILUTED>                                    $0.42