1st Quarter Trading Statement

SAINSBURY(J) PLC
21 July 1999


J Sainsbury plc - First Quarter Trading Statement 
for the 12 weeks to 26 June 1999




                Wks 1-12   Total   Like-for-   Like-for-Like Sales Growth     
                Takings    Sales  Like Sales   adjusted for the effect of 
                           Growth  Growth      an earlier Easter (%)
                  (£m)       (%)     (%)     
               
               98/99 99/00                      98/99  Q1     99/00  Q1

JS Group       3,753  3,805   1.4    (0.4)       4.7            0.8

Sainsbury's
Supermarkets*  2,999  2,996  (0.1)   (1.9)       4.5           (1.0)

Homebase         335    359   7.1     6.6        7.0           12.1

Shaw's          $693   $724   4.5     2.2        4.6            2.2

* including Savacentre

Dino Adriano, Group Chief Executive comments:  

'Sainsbury's Supermarkets has launched the most extensive programme of change
in its history in a market place of increasing competitive severity.  As
expected this has affected sales performance in the short term, but as I have
previously outlined, the actions we are taking over the course of the year
will position us to achieve positive like-for-like growth by the end of the
current financial year, and outperform industry averages in the following
financial year.

The performance of Homebase and Shaw's has been excellent. Homebase continues
to demonstrate strong sales momentum and Shaw's has strengthened its market
position through a combination of continued solid sales growth and the
completion of the Star Markets acquisition.'

Sainsbury's Supermarkets

Sales performance
During the first quarter, total sales at Sainsbury's Supermarkets declined by
0.1%, including a decline in like-for-like sales of 1.9%. This performance
reflects the strong comparisons associated with our World Cup promotion in the
same period last year. Adjusting for the effect of the earlier Easter results
in a like-for-like sales decline of 1.0%.  Inflation over this period averaged
1.5%.  

Current initiatives
       We have started to implement the changes announced at the year end.

       -       We are rolling-out our plans for significantly improving choice
               right across our entire portfolio.  We have increased choice by
               re-balancing space between product departments in 24 stores.   
               By expanding fixtures in 17 of these stores we have added up to
               1700 new lines per store while intensifying our displays in the
               remaining 7 stores has enabled us to increase the number of    
               lines by up to 600.   In addition, expanding fixtures in a     
               further 14 heavily traded stores has resulted in improved      
               availability. These actions have inevitably led to some        
               disruption within the stores in the near term.

               We have taken further action on price this week to reinforce   
               our promotions programme and strengthen the outstanding value  
               we offer.  We have cut the price of 500 commonly bought lines  
               by up to 10%, under the banner 'We've Sliced the Price'.  This 
               campaign was planned and budgeted for at the start of the year.
  
       -       We are communicating the balance of quality, choice, service   
               and value we offer more effectively through our new advertising
               campaign and in-store brand messages. 

       -       Our recently launched 'Be Good to Yourself' range of over 200  
               products demonstrates our ability and commitment to providing  
               quality and choice to our customers.  It has already           
               established itself as the leading low fat range in the market  
               and is exceeding its sales expectations.

       -       We are now well progressed in introducing our new ways of      
               working to all store management teams.  Over the next few      
               months each management team will develop clear action plans for
               embedding the new culture into their store.

       -       We have significantly enhanced customer service over the last  
               12 weeks. We have invested an average of 120 hours per week in 
               all stores focusing on extra replenishment hours to improve    
               availability across the store with a particular emphasis on    
               produce, introducing a dedicated Customer Support role in every
               store to answer customers' queries, and a significant programme
               of sampling within stores.

       -        We are on track with all of the efficiency initiatives        
                announced at the year end which we expect will realise savings
                of £160m per annum by the end of next year.

Growth Strategies
       Following extensive market testing and learning we are well positioned 
       to accelerate growth in two areas of the business which, until now,    
       have been proving grounds:

       -        We are significantly accelerating our plans for a meaningful  
                convenience store business.  Our aim is to achieve a          
                significant share of the £15 billion per year convenience     
                market.  We are very pleased with the sales performance of our
                three Sainsbury's Local stores in Headcorn, Hammersmith and   
                Victoria. Our research proves they provide the best           
                convenience store offer in the UK for customers short on time 
                who want quality fresh food and meal ideas in locations close 
                to where they live or work.  We plan an accelerated roll out  
                of Sainsbury's Local with the long term objective of opening  
                up to 1000 stores.  Approximately 200 locations will be opened
                over the next three years, creating some 10,000 jobs in local 
                communities, and supported by existing resources.

       -        We are now ready to take the next step in growing Sainsbury's 
                Bank into a significant contributor to Group profitability.   
                We aim, together with our partner Bank of Scotland, to        
                establish Sainsbury's Bank as an important financial services 
                business over the next three to four years.  Over the next    
                twelve months Sainsbury's Bank will be stepping up its product
                development and marketing efforts with particular focus on    
                Personal Loans and Mortgages.

Homebase: 

       Homebase has continued its excellent performance during the first      
       quarter, generating total sales growth of 7.1%, including like-for-like
       sales growth of 6.6%.  After adjusting for the effect of the earlier   
       Easter, total sales increased by 12.7%, including like-for-like sales  
       growth of 12.1%.

       Our successful value campaign has generated a significant increase in  
       both customer numbers and transaction size and a 0.6% increase in      
       market share over the same period last year.  As indicated in previous 
       statements, our focus on value will result in a decline in gross margin
       during the year.

       Homebase generated a strong sales performance in spite of the continued
       weak performance of our kitchens business.  It is clear that continued 
       under performance in this area of the business is not acceptable.

Shaw's:
 
       Shaw's reports yet another strong quarter with total sales growth of   
       4.5%, including like-for-like sales growth of 2.2% reflecting the tough
       comparisons associated with our strong promotions programme in the same
       period last year.  Inflation averaged 2% over the period.  

       Shaw's position as the second largest food retailer in New England has 
       been strengthened following approval from the Federal Trade Commission 
       to acquire Star Markets.  From June 28, Shaw's and Star Markets operate
       169 stores with projected annual sales of approximately $4 billion.  

Group Performance Outlook:

During the next quarter we will continue to make each of our Sainsbury's
stores more competitive, extend our lead on quality and significantly improve
our choice and service delivery while driving forward a strong and competitive
value message.  However we expect our sales performance over the next quarter
will continue to be affected by the implementation of our programme of change.
 We anticipate both Homebase and Shaw's to continue their solid sales
performance as Homebase benefits from a strong Garden Centre trading period
and Shaw's strengthens its offer through a double coupons promotions
programme.

We intend to include all our UK staff, who have over one full financial year's
service, within our Approved Discretionary Share Option Scheme.  More than
120,000 colleagues who do not currently hold share options under this scheme
will be granted options to the value of 15% of salary.  We believe this will
be a valuable motivating factor and help reinforce the links between employees
and shareholder interests.  It will make our scheme one of the largest of its
kind.


Conference Call: 

Following today's announcement of J Sainsbury plc's First Quarter sales
update, Dino Adriano, Group Chief Executive, will make a short statement via
conference call for analysts and shareholders at 09:00 UK time. The statement
will be followed by a 25 minute question and answer session with Dino Adriano
and David Bremner, Deputy Group Chief Executive. 

To participate in the call from either the UK or the US, please dial the
following number: [phone], 10 minutes prior to the start of the
call.

A replay service of the call will be available until 24:00 hrs UK time on
23.07.99.  To access this service from either the UK or US please dial +44 (0)
141 566 8866 and enter the client ID number 533 and the conference call number
605 then press hash on the telephone key pad.


Investor Relations:   Miranda Pode - 0171 695 6215
Press                 Pip Wood     - 0171 695 6127