<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SERVICE
MERCHANDISE COMPANY, INC. FORM 10-Q FOR QUARTERLY PERIOD ENDED OCTOBER 1, 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>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-2000
<PERIOD-START>                             JAN-03-2000
<PERIOD-END>                               OCT-01-2000
<CASH>                                          22,376
<SECURITIES>                                         0
<RECEIVABLES>                                   25,451
<ALLOWANCES>                                    17,545
<INVENTORY>                                    523,968
<CURRENT-ASSETS>                               576,891
<PP&E>                                         731,222
<DEPRECIATION>                                 371,048
<TOTAL-ASSETS>                                 985,930
<CURRENT-LIABILITIES>                          379,119
<BONDS>                                        479,465
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        99,906
<OTHER-SE>                                    (254,737)
<TOTAL-LIABILITY-AND-EQUITY>                   985,930
<SALES>                                      1,034,915
<TOTAL-REVENUES>                             1,034,915
<CGS>                                          820,467
<TOTAL-COSTS>                                  820,467
<OTHER-EXPENSES>                               372,478
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              29,614
<INCOME-PRETAX>                               (187,644)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                           (187,644)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (187,644)
<EPS-BASIC>                                      (1.88)
<EPS-DILUTED>                                    (1.88)

<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.