<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-K

CHECK ONE
  X      Annual report pursuant to Section 13 or 15(d) of the Securities 
-----    Exchange Act of 1934 for the fiscal year ended February 1, 1997 or

         Transition report pursuant to Section 13 or 15(d) of the Securities
-----    Exchange Act of 1934


COMMISSION FILE NUMBER 0-7214



                               HECHINGER COMPANY
             (Exact name of Registrant as specified in its charter)


<TABLE>
<S>                                                           <C>
                 DELAWARE                                                 52-1001530
(State or other jurisdiction of incorporation)                (I.R.S. Employer Identification No.)

               1801 MCCORMICK DRIVE, LARGO, MARYLAND                        20774
              (Address of principal executive offices)                   (Zip Code)
</TABLE>

      Registrant's telephone number, including area code:  (301) 341-1000

          SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
                                      NONE

          SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
                      CLASS A COMMON STOCK, $.10 PAR VALUE
                      CLASS B COMMON STOCK, $.10 PAR VALUE
              5-1/2% CONVERTIBLE SUBORDINATED DEBENTURES DUE 2012

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                  YES   X                         NO
                      -----                          -----




                                       1
<PAGE>   2

Indicate by check mark if the disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.

                                       X    
                                    -------

State the aggregate market value of the voting stock held by non-affiliates of
the registrant.  (The aggregate market value is computed by reference to the
last sale price of such stock as of April 8, 1997.)

                                  $59,438,741

Indicate the number of shares outstanding of each of the registrant's classes
of Common Stock, as of April 8, 1997

           32,540,874 shares of Class A Common Stock, $.10 par value
            9,671,874 shares of Class B Common Stock, $.10 par value


                      DOCUMENTS INCORPORATED BY REFERENCE

The following documents are hereby incorporated by reference into Parts II, III
and IV of this Form 10-K:  (1) portions of Registrant's Annual Report to
Stockholders for the year ended February 1, 1997 as indicated herein; and  (2)
portions of Registrant's 1997 Proxy Statement to be filed pursuant to
Regulation 14A, as indicated herein.





                                       2
<PAGE>   3
                                     PART I


ITEM 1.  BUSINESS.

Hechinger Company (the "Company") is the successor to a business started in
1911 by Sidney L. Hechinger.  The Company is a leading specialty retailer
providing products and services for the care, repair, remodeling and
maintenance of the home and garden.  The Company operates 117 stores under the
Hechinger ("Hechinger"), Home Quarters Warehouse ("Home Quarters") and Better
Spaces ("Better Spaces") names.  The 64 Hechinger stores are primarily located
in the Mid-Atlantic region; the 52 Home Quarters stores are primarily located
in the Southeastern, Northeastern and Midwestern parts of the United States;
the one Better Spaces store is located in Albany, New York.

The following table sets forth the number of stores operated by the Company and
the aggregate amount of square feet of store space under roof for the specified
periods:

<TABLE>
<CAPTION>
                                                                                STORE
                                                     NUMBER            SQUARE FOOTAGE
                                                  OF STORES            (IN THOUSANDS)
                                                  ---------          ----------------
          <S>                                          <C>                 <C>
          As of January 29, 1994                       125                  9,640
          1994 openings                                 12                  1,497
          1994 closings                                 (4)                  (295)
                                                                  
          As of January 28, 1995                       133                 10,842
          1995 openings                                 10                  1,134
          1995 closings                                (25)                (2,081)
                                                                  
          As of February 3, 1996                       118                  9,895
          1996 openings                                  2                    185
          1996 closings                                 (3)                  (190)
                                                                  
          As of February 2, 1997                       117                  9,890
</TABLE>

In 1996, the Company relocated two of its stores to new, larger facilities and
sold and closed one Company owned store.  Subsequent to year-end, the Company
reopened its Home Quarters store located in Albany, New York under the name,
"Better Spaces".  See Marketing section below for further discussion.  See
Notes to Consolidated Financial Statements and Management's Discussion and
Analysis of Financial Condition and Results of Operations for further
discussion of stores closed in 1995.

PRODUCTS

All of the Company's stores offer for sale a large selection of lumber,
building materials, hardware and tools, paint, garden supplies, electrical and
plumbing supplies and other items related to the home improvement market.

The following table sets forth the percentage of sales accounted for by
merchandise category:





                                       3
<PAGE>   4
<TABLE>
<CAPTION>
FISCAL YEAR ENDED                         FEB. 1, 1997        FEB. 3, 1996       JAN. 28, 1995
-----------------                         ------------        ------------       -------------
<S>                                               <C>                 <C>                 <C>
Lumber and building materials                      29%                 28%                 27%
Garden supplies and furniture                      20                  19                  18
Hardware and tools                                 12                  13                  12
Electrical supplies and small                                                
 appliances                                         7                  10                  11
Plumbing supplies                                  18                  16                  16
Paint                                               8                   8                   9
Home Decor and housewares                           6                   6                   7
                                                  ---                 ---                 ---
                                                                             
Total                                             100%                100%                100%
                                                  ===                 ===                 === 
</TABLE>

Many of the items sold in the Company's stores are nationally advertised, brand
name products.  The Company also offers some private label items such as garden
equipment and supplies, and paint.  The Company may add private label items to
its merchandise in other areas where there are no major national brands or
where management deems it an effective way to meet price competition in a
particular product line.

In 1995, the Company decided to combine its Hechinger and Home Quarters
operations under one management team.  By merging the merchandise acquisition
function of Hechinger and Home Quarters, the Company believes it has increased
its purchasing power with its vendors.  The Company also believes it has good
relationships with its suppliers and does not consider itself dependent upon
any single source for its merchandise.  See Notes to Consolidated Financial
Statements and Management's Discussion and Analysis of Financial Condition and
Results of Operations for further discussion.

MARKETING

The majority of the Company's sales are to individuals.  Employees are trained
to help the do-it-yourself customer make his or her purchases and solve
technical problems related to home repair, maintenance and improvement work.
The Company offers its customers a liberal return policy.

In 1996, as a part of the vendor consolidation program, the Company completed
over 150 resets of merchandise assortment, including major remodeling of the
Kitchen and Bath and Flooring departments.  Additionally, in the fall of 1996,
the Company initiated its new customer program, "Customer First" in one market.
This program guarantees the store will be in-stock on 37,000 items and
guarantees fast check out.  The program also promotes the Company's "no hassle"
return policy and its frequent buyer "Project Rewards" program.  The Company
plans to expand this program to approximately 50% of its stores in 1997.

In February 1997, the Company reopened its Home Quarters store located in
Albany, New York under the name "Better Spaces".  This store has been designed
for customers interested in refurbishing, enhancing, organizing, modernizing
and maintaining their home, both inside and outside.  Further expansion of
"Better Spaces" to other markets is pending the results of this pilot store.





                                       4
<PAGE>   5
The Company employs a multi-media marketing strategy using television, radio,
newspaper, direct mail and a "catabook", which is compact enough to carry along
as a shopping reference and serves as an "idea" book.  The Company's
advertisements focus on the stores' wide selection and values, featuring
recognizable brand names and emphasizing the Company's commitment to meeting or
beating competitors' prices.  The Company's use of recognizable brand names
enables it to share advertising costs co-operatively with its suppliers.

The Company hosts how-to clinics throughout the year at various stores.  At
these clinics, trained employees, manufacturers' representatives and, at times,
nationally recognized experts, demonstrate products and conduct classes on
major home improvement projects.

The Company offers a private label credit card program pursuant to which credit
is extended to its customers by a third party financial institution.  The
Company also accepts Visa, MasterCard,  Discover and American Express in all of
its stores.  For the fiscal year ended February 1, 1997 credit card sales
accounted for 49% of the Company's total sales.

COMPETITION

The business of the Company is highly competitive.  The Company competes in
each of its market areas with other national and regional home center chains,
national chains of general merchandise stores and local hardware stores, some
of which have greater financial resources than the Company or have been
operating longer in particular geographic areas than the Company.

The extent of the Company's competition varies by geographic area.  Competitors
have entered several of the Company's existing markets and established
competitors are expanding in certain of these markets, which may, in each case,
adversely effect the Company's sales.  In addition, the Company's strategy to
maintain competitive pricing in each of its markets may result in lower gross
margins as competition intensifies.  There can be no assurance that the
Company's financial results will not be impacted negatively by existing
competition, by the further expansion of competitors into the Company's markets
or by the Company's expansion into competitors' markets.  See Management's
Discussion and Analysis of Financial Condition and Results of Operations for
discussion of store closings in certain markets.

The Company believes that it is in a competitive position in the majority of
its established market areas, reflecting the quality of its trained personnel,
merchandise selection, pricing, advertising and store size, location and
condition.  The Company believes that its ability to devote capital resources
to the operation of its business during fiscal 1997 will enable it to remain
competitive in the industry.

SEASONALITY

The Company's business is seasonal and its annual results of operations depends
to a significant extent on the results of operations for the second quarter of
the fiscal year.  The





                                       5
<PAGE>   6
Company generated 30% of its sales in the second quarter of 1996.

EMPLOYEES

The Company currently has approximately 16,000 employees, approximately half of
whom are employed on a part-time basis.  The Company conducts comprehensive
employee training programs which have enabled the Company to promote from
within many current store managers and merchants.  In addition, the Company
supplements its work force by recruiting from outside sources.  The Company
believes its employee relations are satisfactory.

ITEM 2.  PROPERTIES.

The Home Quarters stores currently average approximately 101,000 square feet
under roof and an additional 33,000 square feet of outdoor selling and storage
space.  Hechinger stores currently average approximately 71,000 square feet
under roof and an additional 23,000 square feet of outdoor selling and storage
space.

The Company currently owns 22 stores and leases the remaining stores.  The
Company believes that all of its facilities, both owned and leased, are in good
condition and well maintained.  Expiration dates of the leases range from 1999
to 2023.  Almost all leases contain renewal clauses or continue on a
year-to-year basis after their respective expiration dates.  Eleven of the
store sites are leased from an affiliate.

The Company's stores are serviced, in part, from the Company's modern warehouse
and distribution facility in Landover, Maryland, which has approximately
640,000 square feet under roof.  In addition, the Company has approximately
177,000 square feet of office space in Largo, Maryland and has approximately
71,000 square feet of office space in Virginia Beach, Virginia.

ITEM 3.  LEGAL PROCEEDINGS.

The Company and its subsidiaries are parties to legal proceedings and claims
arising in the ordinary course of business.  Although the outcome of such
proceedings and claims cannot be determined with certainty, based upon
evaluation by legal counsel, management believes that the outcome of such
proceedings and claims will not have a material adverse effect on the Company's
consolidated financial position, results of operations or liquidity.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.





                                       6
<PAGE>   7
                      EXECUTIVE OFFICERS OF THE REGISTRANT

Pursuant to General Instruction G(3) of Form 10-K, the following list is
included as an unnumbered Item in Part I of this Report in lieu of being
included in its entirety in the Proxy Statement.

The following table sets forth certain information regarding the Company's
executive officers as of March 1997:

<TABLE>
<CAPTION>
                                                                                                       YEAR FIRST JOINED
NAME AND AGE                                        POSITION WITH THE COMPANY                                THE COMPANY  
------------                                        -------------------------                           -----------------
<S>                         <C>         <C>                                                                       <C>
John W. Hechinger, Jr.      (47)        Chairman of the Board of Directors and Chief Executive                    1972
                                        Officer since 1995; prior thereto, President and Chief              
                                        Executive Officer since 1990                                        
                                                                                                            
Kenneth J. Cort             (55)        President and Chief Operating Officer since 1995; prior                   1993
                                        thereto, President and Chief Executive Officer of Hechinger Stores  
                                        Company since 1993; prior thereto, Chief Operating Officer          
                                        for Ames Department Stores, Inc. since 1991                         
                                                                                                            
W. Clark McClelland         (58)        Executive Vice President and Chief Financial Officer                      1975
                                        since 1993; prior thereto, Senior Vice President-Finance and        
                                        Chief Financial Officer since 1986
</TABLE>                


There is no family relationship between any of the foregoing persons.

Executive officers are elected by the Board of Directors of the Company at its
first meeting held after each Annual Meeting of Stockholders to serve until
their successors are chosen and qualified, or as otherwise provided in the
Company's By-laws.





                                       7
<PAGE>   8
                                    PART II


ITEM 5.  MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS.

Pursuant to General Instruction G(2) of Form 10-K, the information called for
by this item is hereby incorporated by reference from the inside back cover of
the Company's Annual Report to Stockholders for the fiscal year ended February
1, 1997.

ITEM 6.  SELECTED FINANCIAL DATA.

Pursuant to General Instruction G(2) of Form 10-K, the information called for
by this item is hereby incorporated by reference from page 4 of the Company's
Annual Report to Stockholders for the fiscal year ended February 1, 1997.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.

Pursuant to General Instruction G(2) of Form 10-K, the information called for
by this item is hereby incorporated by reference from pages 5 through 7 of the
Company's Annual Report to Stockholders for the fiscal year ended February 1,
1997.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Pursuant to General Instruction G(2) of Form 10-K, the information called for
by this item is hereby incorporated by reference from pages 8 through 16 of the
Company's Annual Report to Stockholders for the fiscal year ended February 1,
1997.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

Not Applicable





                                       8
<PAGE>   9
                                    PART III


ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

Pursuant to General Instruction G(3) of Form 10-K, the information called for
by this item regarding directors is hereby incorporated by reference from the
Company's definitive proxy statement to be filed pursuant to Regulation 14A not
later than 120 days after the end of the fiscal year covered by this report.
Information regarding the Company's executive officers is set forth above in
the unnumbered Item following Item 4 of Part I of this Report.

ITEM 11.  EXECUTIVE COMPENSATION.

Pursuant to General Instruction G(3) of Form 10-K, the information called for
by this item is hereby incorporated by reference from the Company's definitive
proxy statement to be filed pursuant to Regulation 14A not later than 120 days
after the end of the fiscal year covered by this report.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

Pursuant to General Instruction G(3) of Form 10-K, the information called for
by this item is hereby incorporated by reference from the Company's definitive
proxy statement to be filed pursuant to Regulation 14A not later than 120 days
after the end of the fiscal year covered by this report.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Pursuant to General Instruction G(3) of Form 10-K, the information called for
by this item is hereby incorporated by reference from the Company's definitive
proxy statement to be filed pursuant to Regulation 14A not later than 120 days
after the end of the fiscal year covered by this report.





                                       9
<PAGE>   10
                                    PART IV


ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.

    (a)  The following documents are filed as a part of this Report:

         1.  Financial Statements.  The following Consolidated Financial
Statements of Hechinger Company and subsidiaries are incorporated by reference
to the pages indicated in Annual Report to Stockholders for the fiscal year
ended February 1, 1997:

<TABLE>
<CAPTION>
                                                                                                 PAGE
                                                                                                 ----
         <S>                                                                                    <C>
         Consolidated Statements of Operations - Years ended
         February 1, 1997, February 3, 1996 and January 28, 1995                                  8

         Consolidated Balance Sheets - As of February 1, 1997
         and February 3, 1996                                                                     9

         Consolidated Statements of Cash Flows - Years ended
         February 1, 1997, February 3, 1996 and January 28, 1995                                  10

         Consolidated Statements of Stockholders' Equity -
         Years ended February 1, 1997, February 3, 1996 and
         January 28, 1995                                                                         11

         Notes to Consolidated Financial Statements                                             12 - 16
</TABLE>

         2.  Financial Statement Schedules.  Schedules have been omitted
because the information required to be set forth therein is included in the
Consolidated Financial Statements or Notes thereto.





                                       10
<PAGE>   11
3.  Exhibits.

EXHIBIT NUMBER                           DOCUMENT

3(a)     Certificate of Incorporation, as amended (incorporated by reference to
Exhibit 4.1 to Registration Statement on Form S-8, File No. 33-27134)

3(b)     By-Laws, as amended (incorporated by reference to Exhibit 3(b) to
Annual Report on Form 10-K for the fiscal year ended February 3, 1990, File No.
0-7214)

4(a)     Indenture, dated as of March 15, 1987, between the Company and First
Union National Bank of North Carolina, relating to 5-1/2% Convertible
Subordinated Debentures Due 2011 (incorporated by reference to Exhibit 4(d) to
Registration Statement on Form S-3, File No. 33-12649); as amended by
Supplemental Indenture dated January 31, 1997 between the Company and First
Union National Bank of North Carolina

4(b)     Indenture, dated as of October 1, 1992, between the Company and First
Union National Bank of North Carolina, and the Prospectus Supplement dated
November 12, 1992 relating to 9.45% Senior Debentures due 2012 (incorporated by
reference to Exhibit 4 to Registration Statement on Form S-3, File No.
33-52960); as amended by Supplemental Indenture dated January 31, 1997 between
the Company and First Union National Bank of North Carolina

4(c)     Indenture, dated as of October 1, 1992, between the Company and First
Union National Bank of North Carolina, and the Prospectus Supplement dated
October 21, 1993 relating to 6.95% Senior Notes due 2003 (incorporated by
reference to Exhibit 4 to Registration Statement on Form S-3, File No.
33-52960); as amended by Supplemental Indenture dated January 31, 1997 between
the Company and First Union National Bank of North Carolina

10(a)    Form of Deferred Compensation Agreement between the Company and John
W. Hechinger and Richard England, respectively (incorporated by reference to
Exhibit 10 to Registration Statement on Form S-3, File No. 2-98155)

10(b)    Hechinger Company 1982 Stock Option Plan, as amended (incorporated by
reference to Exhibit 4.3 to Registration Statement on Form S-8, File No.
33-27134)

10(c)    Hechinger Company Performance Share Plan (incorporated by reference to
Exhibit 10(e) to Annual Report on Form 10-K for the fiscal year ended February
3, 1990, File No. 0-7214)

10(d)    Stockholders' Agreement, dated as of August 23, 1989, by and between
members of the England Family, members of the Hechinger Family and the Company
(incorporated by reference to Exhibit 28 (a) to Registration Statement on Form
S-4, as filed on October 26, 1989)

10(e)    Hechinger Company 1991 Stock Incentive Plan (incorporated by reference
to Exhibit 4(a) to Registration Statement on Form S-8, File No. 33-27134)

10(f)    Revolving Credit Agreement dated as of February 20, 1996 among
Hechinger Stores Company and Hechinger Stores East Coast Company, as borrowers,
the financial institutions from time to time party thereto, as Lenders, and The
CIT Group/Business Credit, Inc., as Agent (incorporated by reference to Exhibit
99 to Registration Statement on Form 8-K, File No. 0-7214)

10(g)    Form of Severance Agreement

10(h)    Form of Supplemental Executive Retirement Agreement; form of
amendments between the Company and the named executive officers
         
11       Statement Regarding Computation of Earnings Per Share

13       Annual Report to Stockholders of the Company for the fiscal year ended
February 1, 1997, certain portions of which are incorporated by reference
herein

21       Subsidiaries of the Registrant

23       Consent of Independent Auditors

27       Financial Data Schedule

(b)  Reports on Form 8-K.

         None.





                                       11
<PAGE>   12
                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                            HECHINGER COMPANY
                                            -----------------
                                            (Registrant)
                               
Date:  April 28, 1997               By      /S/ JOHN W. HECHINGER, JR.
                                            --------------------------
                                            John W. Hechinger, Jr.
                                            Chairman of the Board of Directors
                                            and Chief Executive Officer


Pursuant to the requirements of the Securities and Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
SIGNATURE                              TITLE                                                   DATE
---------                              -----                                                   ----
<S>                                    <C>                                                     <C>
/S/ JOHN W. HECHINGER, JR              Chairman of the Board of Directors                      April 28, 1997
-------------------------                and Chief Executive Officer                                         
John W. Hechinger, Jr.                   (Principal Executive Officer) 

/S/ KENNETH J. CORT                    President and Chief Operating Officer                   April 28, 1997
-------------------                      and Director                                                        
Kenneth J. Cort                                      

/S/ JOHN W. HECHINGER                  Chairman of the Executive Committee                     April 28, 1997
---------------------                    of the Board of Directors                                           
John W. Hechinger                                                 

/S/ S. ROSS HECHINGER                  Senior Vice President-                                  April 28, 1997
---------------------                    Corporate Administration                                            
S. Ross Hechinger                        and Director              

/S/ ANN D. JORDAN                      Director                                                April 28, 1997
-----------------                                                                                            
Ann D. Jordan

/S/ W. CLARK MCCLELLAND                Executive Vice President and                            April 28, 1997
-----------------------                  Chief Financial Officer                                             
W. Clark McClelland                      (Principal Financial and Accounting Officer) 
                                         and Director                                 

/S/ ROBERT S. PARKER                   Director                                                April 28, 1997
----------------------------                                                                                 
Robert S. Parker

/S/ MELVIN A. WILMORE                  Director                                                April 28, 1997
---------------------                                                                                        
Melvin A. Wilmore

/S/ ALAN J. ZAKON                      Director                                                April 28, 1997
-----------------                                                                                            
Alan J. Zakon
</TABLE>





                                       12
<PAGE>   13
                       HECHINGER COMPANY AND SUBSIDIARIES
                           ANNUAL REPORT ON FORM 10-K
                          YEAR ENDED FEBRUARY 1, 1997

                                    INDEX TO
                             SCHEDULES AND EXHIBITS



<TABLE>
<CAPTION>
                                       DESCRIPTION                                                               
                                       -----------                                                         SEQUENTIALLY 
                                                                                                           NUMBERED PAGE
                                                                                                           -------------
  <S>                      <C>                                                                                <C>
  Exhibit 4(a)             - Supplemental Indenture dated January 31, 1997 between the
                           Company and First Union National Bank of North Carolina                                   
                                                                                                                     
  Exhibit 4(b) and (c)     - Supplemental Indenture dated January 31, 1997 between                                   
                           the Company and First Union National Bank of North Carolina                               
                                                                                                                     
  Exhibit 10(g)            - Form of Severance Agreement                                                             
                                                                                                                     
  Exhibit 10(h)            - Form of Supplemental Executive Retirement Agreement                                     
                           and form of amendments between the Company                                                
                           and the named executive officers                                                          
                                                                                                                     
  Exhibit 11               - Statement Regarding Computation of Earnings Per Share                                   
                                                                                                                     
  Exhibit 13               - Annual Report to Stockholders of the Company for the                                    
                             year ended February 1, 1997                                                             
                                                                                                                     
  Exhibit 21               - Subsidiaries of the Registrant                                                          
                                                                                                                     
  Exhibit 23               - Consent of Independent Auditors                                                         

  Exhibit 27               - Financial Data Schedule
</TABLE>





                                       13