<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SERVICE
MERCHANDISE COMPANY, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED OCTOBER 3,
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>                   9-MOS
<FISCAL-YEAR-END>                          JAN-02-2000
<PERIOD-START>                             JAN-04-1999
<PERIOD-END>                               OCT-03-1999
<CASH>                                          36,923
<SECURITIES>                                         0
<RECEIVABLES>                                   37,832
<ALLOWANCES>                                    19,090
<INVENTORY>                                    772,299
<CURRENT-ASSETS>                               906,630
<PP&E>                                         833,470
<DEPRECIATION>                                 460,401
<TOTAL-ASSETS>                               1,341,980
<CURRENT-LIABILITIES>                          499,878
<BONDS>                                        539,058
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       100,022<F1>
<OTHER-SE>                                     (90,780)
<TOTAL-LIABILITY-AND-EQUITY>                 1,341,980
<SALES>                                      1,395,258
<TOTAL-REVENUES>                             1,395,258
<CGS>                                        1,130,839
<TOTAL-COSTS>                                1,130,839
<OTHER-EXPENSES>                               455,023<F2>
<LOSS-PROVISION>                                16,091
<INTEREST-EXPENSE>                              50,419
<INCOME-PRETAX>                               (257,114)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                           (257,114)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                 (7,851)
<CHANGES>                                            0
<NET-INCOME>                                  (264,965)
<EPS-BASIC>                                      (2.66)
<EPS-DILUTED>                                    (2.66)
<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>