-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
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 Y1wtEEMmDcNLiDGw53DRlg==

<SEC-DOCUMENT>0001005794-03-000294.txt : 20030923
<SEC-HEADER>0001005794-03-000294.hdr.sgml : 20030923
<ACCEPTANCE-DATETIME>20030923151436
ACCESSION NUMBER:		0001005794-03-000294
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030922
FILED AS OF DATE:		20030923

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SHORE JERRY
		CENTRAL INDEX KEY:			0001182961

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14565
		FILM NUMBER:		03905998

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 4300 NEW GETWELL
		CITY:			MEMPHIS
		STATE:			TN
		ZIP:			38118

	MAIL ADDRESS:	
		STREET 1:		P O BOX 4300 NEW GETWELL
		CITY:			MEMPHIS
		STATE:			TN
		ZIP:			38118

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FREDS INC
		CENTRAL INDEX KEY:			0000724571
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-VARIETY STORES [5331]
		IRS NUMBER:				620634010
		STATE OF INCORPORATION:			TN
		FISCAL YEAR END:			0127

	BUSINESS ADDRESS:	
		STREET 1:		4300 NEW GETWELL RD
		CITY:			MEMPHIS
		STATE:			TN
		ZIP:			38118
		BUSINESS PHONE:		9013658880

	MAIL ADDRESS:	
		STREET 1:		4300 NEW GETWELL ROAD
		CITY:			MEMPHIS
		STATE:			TN
		ZIP:			38118

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BADDOUR INC
		DATE OF NAME CHANGE:	19910620
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>jshoreform4092203_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<!-- - EDGAR Ease Plus 1.0                                   07/25/03  TT    -->
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
   <periodOfReport>2003-09-22</periodOfReport>
   <notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000724571</issuerCik>
        <issuerName>FREDS INC</issuerName>
        <issuerTradingSymbol>FRED</issuerTradingSymbol>
   </issuer>
   <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001182961</rptOwnerCik>
            <rptOwnerName>SHORE JERRY</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>4300 NEW GETWELL</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>MEMPHIS</rptOwnerCity>
            <rptOwnerState>TN</rptOwnerState>
            <rptOwnerZipCode>38118</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
         <isDirector>0</isDirector>
         <isOfficer>1</isOfficer>
         <isTenPercentOwner>0</isTenPercentOwner>
         <isOther>0</isOther>
         <officerTitle>Chief Financial Officer</officerTitle>
      </reportingOwnerRelationship>
   </reportingOwner>
 <derivativeTable>
   <derivativeTransaction>
      <securityTitle>
         <value>Option on Class A Common Stock</value>
      </securityTitle>
      <conversionOrExercisePrice>
         <value>17.67</value>
      </conversionOrExercisePrice>
      <transactionDate>
         <value>2003-09-19</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>A</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>21600</value>
            <footnoteId id="F1"/>
         </transactionShares>
         <transactionPricePerShare>
           <value>0</value>
            <footnoteId id="F1"/>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>A</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <exerciseDate>
            <footnoteId id="F2"/>
      </exerciseDate>
      <expirationDate>
            <footnoteId id="F2"/>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Class A Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>21600</value>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>21600</value>
            <footnoteId id="F5"/>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </derivativeTransaction>
   <derivativeTransaction>
      <securityTitle>
         <value>Option on Class A Common Stock</value>
      </securityTitle>
      <conversionOrExercisePrice>
         <value>20.60</value>
      </conversionOrExercisePrice>
      <transactionDate>
         <value>2003-09-19</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>A</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>5400</value>
            <footnoteId id="F1"/>
         </transactionShares>
         <transactionPricePerShare>
           <value>0</value>
            <footnoteId id="F1"/>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>A</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <exerciseDate>
            <footnoteId id="F3"/>
      </exerciseDate>
      <expirationDate>
            <footnoteId id="F3"/>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Class A Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>5400</value>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>5400</value>
            <footnoteId id="F5"/>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </derivativeTransaction>
   <derivativeTransaction>
      <securityTitle>
         <value>Option on Class A Common Stock</value>
      </securityTitle>
      <conversionOrExercisePrice>
         <value>12.36</value>
      </conversionOrExercisePrice>
      <transactionDate>
         <value>2003-09-19</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>A</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>7500</value>
            <footnoteId id="F1"/>
         </transactionShares>
         <transactionPricePerShare>
           <value>0</value>
            <footnoteId id="F1"/>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>A</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <exerciseDate>
            <footnoteId id="F4"/>
      </exerciseDate>
      <expirationDate>
            <footnoteId id="F4"/>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Class A Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>7500</value>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>7500</value>
            <footnoteId id="F5"/>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </derivativeTransaction>
 </derivativeTable>
   <footnotes>
      <footnote id="F1"> Split affected for 7/1/03 3 for 2 stock split.</footnote>

      <footnote id="F2"> Received grant dated 3/11/03 with the option term of seven years, six months. Vesting schedule: 10% on 8/20/04, 8/20/05, 8/20/06, 8/20/07, with the remaining 60% vesting on 8/20/08. Vesting may be accelerated to 20% in any year that Operating Income Margin meets or exceeds the target.</footnote>

      <footnote id="F3"> Received grant dated 5/19/03 with the option term of seven years, four months. Vesting schedule: 10% on 8/20/04, 8/20/05, 8/20/06, 8/20/07, with the remaining 60% vesting on 8/20/08. Vesting may be accelerated to 20% in any year that Operating Income Margin meets or exceeds the target.</footnote>

      <footnote id="F4"> Received grant dated 10/9/01 with the option term of five yars. All shares are vested on or after 10/9/04.</footnote>

      <footnote id="F5"> Mr. Shore currently has a total of 56,063 options to purchase common stock under various grants from Fred's, Inc.</footnote>
   </footnotes>
   <ownerSignature>
      <signatureName>/s/ Jerry Shore</signatureName>
      <signatureDate>2003-09-22</signatureDate>
   </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----