<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Service
Merchandise Company, Inc. Form 10-Q for the quarterly period ended April 4, 1999
and is qualified in its entirety by reference to such financial statements
detailed in Part I of the Form 10-Q.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JAN-02-2000
<PERIOD-START>                             JAN-04-1999
<PERIOD-END>                               APR-04-1999
<CASH>                                          80,956
<SECURITIES>                                         0
<RECEIVABLES>                                   32,555
<ALLOWANCES>                                     2,072
<INVENTORY>                                    732,166
<CURRENT-ASSETS>                               922,230
<PP&E>                                         406,471
<DEPRECIATION>                                 541,258
<TOTAL-ASSETS>                               1,396,164
<CURRENT-LIABILITIES>                          302,556
<BONDS>                                        684,967
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       100,167<F1>
<OTHER-SE>                                       7,326
<TOTAL-LIABILITY-AND-EQUITY>                 1,396,164
<SALES>                                        510,509
<TOTAL-REVENUES>                               510,509
<CGS>                                          413,708
<TOTAL-COSTS>                                  413,708
<OTHER-EXPENSES>                               232,186<F2>
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              25,102
<INCOME-PRETAX>                               (160,487)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                           (160,487)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                  7,851
<CHANGES>                                            0
<NET-INCOME>                                  (168,338)
<EPS-PRIMARY>                                    (1.69)
<EPS-DILUTED>                                    (1.69)
<FN>
<F1>AMOUNT REPRESENTS THE NUMBER OF SHARES OF $0.50 PAR VALUE COMMON STOCK ISSUED
    AND OUTSTANDING.
<F2>AMOUNT INCLUDES I) DEPRECIATION AND AMORTIZATION II) SELLING, GENERAL AND
    ADMINISTRATIVE EXPENSES III) OTHER INCOME, NET IV) RESTRUCTURING CHARGE AND
    V) REORGANIZATION ITEMS
</FN>