<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SERVICE
MERCHANDISE COMPANY, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JULY 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>                   6-MOS
<FISCAL-YEAR-END>                          JAN-02-2000
<PERIOD-START>                             JAN-04-1999
<PERIOD-END>                               JUL-04-1999
<CASH>                                          37,858
<SECURITIES>                                         0
<RECEIVABLES>                                   35,320
<ALLOWANCES>                                    18,755
<INVENTORY>                                    553,711
<CURRENT-ASSETS>                               695,108
<PP&E>                                         872,450
<DEPRECIATION>                                 490,281
<TOTAL-ASSETS>                               1,127,120
<CURRENT-LIABILITIES>                          210,491
<BONDS>                                        564,067
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       100,097<F1>
<OTHER-SE>                                     (93,242)
<TOTAL-LIABILITY-AND-EQUITY>                 1,127,120
<SALES>                                      1,028,773
<TOTAL-REVENUES>                             1,028,773
<CGS>                                          844,753
<TOTAL-COSTS>                                  844,753
<OTHER-EXPENSES>                               391,484<F2>
<LOSS-PROVISION>                                15,756
<INTEREST-EXPENSE>                              37,861
<INCOME-PRETAX>                               (261,081)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                           (261,081)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                 (7,851)
<CHANGES>                                            0
<NET-INCOME>                                  (268,932)
<EPS-BASIC>                                      (2.70)
<EPS-DILUTED>                                    (2.70)
<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 (less loss provision) III) Other income, net IV)
Restructuring charge and V) Reorganization items.
</FN>