<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
unaudited Consolidated Balance Sheets and Consolidated Statements of Income of
Fred's, Inc. for the quarter ended May 2, 1998 and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<CIK> 0000724571
<NAME> FRED'S, INC.
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JAN-30-1999
<PERIOD-START>                             FEB-01-1998
<PERIOD-END>                               MAY-02-1998
<CASH>                                         159,000
<SECURITIES>                                         0
<RECEIVABLES>                                7,544,000
<ALLOWANCES>                                 (772,000)
<INVENTORY>                                117,134,000
<CURRENT-ASSETS>                           130,176,000
<PP&E>                                     123,073,000
<DEPRECIATION>                            (65,498,000)
<TOTAL-ASSETS>                             194,714,000
<CURRENT-LIABILITIES>                       59,051,000
<BONDS>                                      1,309,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                    66,143,000
<OTHER-SE>                                  66,659,000
<TOTAL-LIABILITY-AND-EQUITY>               194,714,000
<SALES>                                    144,156,000
<TOTAL-REVENUES>                           144,156,000
<CGS>                                      103,989,000
<TOTAL-COSTS>                              103,989,000
<OTHER-EXPENSES>                            34,159,000
<LOSS-PROVISION>                                 6,000
<INTEREST-EXPENSE>                              46,000
<INCOME-PRETAX>                              5,956,000
<INCOME-TAX>                                 2,204,000
<INCOME-CONTINUING>                          3,752,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
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<NET-INCOME>                                 3,752,000
<EPS-PRIMARY>                                     0.32
<EPS-DILUTED>                                     0.31