<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SERVICE
MERCHANDISE COMPANY, INC. FORM 10-Q FOR QUARTERLY PERIOD ENDED JULY 2, 2000 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS DETAILED
IN PART I OF THE FORM 10-Q.

<MULTIPLIER> 1,000

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-2000
<PERIOD-START>                             JAN-03-2000
<PERIOD-END>                               JUL-02-2000
<CASH>                                          29,719
<SECURITIES>                                         0
<RECEIVABLES>                                   25,764
<ALLOWANCES>                                    17,496
<INVENTORY>                                    513,592
<CURRENT-ASSETS>                               568,547
<PP&E>                                         770,981
<DEPRECIATION>                                 409,382
<TOTAL-ASSETS>                                 981,982
<CURRENT-LIABILITIES>                          299,576
<BONDS>                                        484,003
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        99,956
<OTHER-SE>                                    (183,497)
<TOTAL-LIABILITY-AND-EQUITY>                   981,982
<SALES>                                        760,577
<TOTAL-REVENUES>                               760,577
<CGS>                                          592,100
<TOTAL-COSTS>                                  592,100
<OTHER-EXPENSES>                               264,409
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              20,526
<INCOME-PRETAX>                               (116,458)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                           (116,458)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (116,458)
<EPS-BASIC>                                      (1.17)
<EPS-DILUTED>                                    (1.17)

<F1>AMOUNT REPRESENTS THE NUMBER OF SHARES OF $0.50 PAR VALUE COMMON STOCK 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.