<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SERVICE
MERCHANDISE COMPANY, INC. FORM 10-Q FOR 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>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<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> 23,574
<ALLOWANCES> 17,587
<INVENTORY> 560,604
<CURRENT-ASSETS> 691,423
<PP&E> 872,450
<DEPRECIATION> 490,281
<TOTAL-ASSETS> 1,123,435
<CURRENT-LIABILITIES> 212,712
<BONDS> 564,067
0
0
<COMMON> 100,097<F1>
<OTHER-SE> (99,148)
<TOTAL-LIABILITY-AND-EQUITY> 1,123,435
<SALES> 1,030,373
<TOTAL-REVENUES> 1,030,373
<CGS> 845,693
<TOTAL-COSTS> 845,693
<OTHER-EXPENSES> 407,240<F2>
<LOSS-PROVISION> 15,756
<INTEREST-EXPENSE> 37,861
<INCOME-PRETAX> (260,421)
<INCOME-TAX> 0
<INCOME-CONTINUING> (260,421)
<DISCONTINUED> 0
<EXTRAORDINARY> (7,851)
<CHANGES> (6,566)
<NET-INCOME> (274,838)
<EPS-BASIC> (2.76)
<EPS-DILUTED> (2.76)
<FN>
<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.
</FN>
</TABLE>
