2nd Quarter Trading Statement

SAINSBURY (J) PLC
27 October 1999


J Sainsbury plc - Second Quarter Trading Statement 
for the 16 weeks to 16 October 1999

                            Highlights

              SSL LfL volume shows improvement from Q1

              Pace of changes to stores significant 

              Significant investment and cost saving initiatives to impact H1

              E-business strategy investment

              Homebase outperforming marketplace and gaining market share

              Shaw's strong first half



SECOND             Wks 13-28        Total Sales Growth  Like-for-like Sales
QUARTER            Takings (£m)            (%)               Growth (%)
              1998/99   1999/2000   1998/99  1999/2000  1998/99  1999/2000
                                        Q2        Q2        Q2        Q2
JS Group       4,802       5,127       4.0       6.8       2.0       1.2
Sainsbury's    3,872       3,922       3.9       1.3       2.0     (0.8)
Supermarkets*
Homebase         371         421       0.8      13.4       2.5      12.6
Shaw's**        $931      $1,258       9.0      35.1       4.6       3.5
 
*  including Savacentre
** Q2 total sales growth, excluding Star Markets, is 4.6% for Shaw's and 3.1% 
   for JS Group



                                               Adjusted for the effect of 
                                                   an earlier Easter          
FIRST HALF   Total Sales    Like-for-Like      Total Sales     Like-for-Like 
               Growth       Sales Growth         Growth        Sales Growth
                 (%)             (%)               (%)              (%)
             98/99  99/00   98/99  99/00      98/99  99/00     98/99  99/00
              H1     H1       H1    H1          H1     H1       H1     H1

JS Group      5.7    4.4      3.4   0.4         5.2   4.9       2.9    0.9
Sainsbury's   5.3    0.7      3.0  (1.3)        5.1   1.1       2.8   (0.9)
Supermarkets*
Homebase      5.5   10.4      6.8   9.7         2.3  13.1       3.4   12.3
Shaw's**     10.1   22.0      5.1   2.9        10.1  22.0       5.1    2.9

*  including Savacentre
** First half total sales growth, excluding Star Markets, is 4.6% for Shaw's  
   and 2.3% for JS Group


Dino Adriano, Group Chief Executive comments:  

'Since our last quarter trading statement, the key areas of focus in
Sainsbury's Supermarkets Ltd have been making our offer more competitive,
removing costs and changing the culture.  We have implemented changes in the
offer to over 100 stores.  The management changes we recently announced will
ensure even more focus and speed to these changes.

Shaw's and Homebase continue to show strong sales growth, demonstrating their
increasing contribution to Group performance.' 

Sainsbury's Supermarkets Limited

We have stabilised our sales position, despite the impact of declining
inflation and an increasingly competitive environment.  Total sales grew by
1.3% during the second quarter including a like-for-like sales decline of
0.8%.  Inflation over the quarter averaged 1%.

At the end of the first half over 100 stores had been altered.  Over 90 of
these were changes to the range.  As we anticipated, the disruption associated
with improving our stores and the changes to our culture and organisation have
held back sales in the short term.  However, during the quarter we have made
steady progress on our plans for improving the supermarket business outlined
at the beginning of June and have started to see the first signs of
improvement.  

Homebase

Homebase has continued its excellent performance during the second quarter. 
Despite a tough competitive environment, Homebase generated above industry
average sales performance with total sales growth of 13.4%, including
like-for-like sales growth of 12.6% and has grown market share by 1.0% to
22.5% by continuing to broaden the appeal of the Homebase brand through
improving the value we offer to customers.

USA

Shaw's continues to make good progress throughout New England.  Strong
promotional activity, including a double coupon campaign throughout our core
territory, resulted in total sales growth, excluding Star Markets, during the
quarter of 4.6%, including like-for-like sales growth of 3.5%.  Inflation over
the period averaged 2%.  Including Star Markets, total sales growth in the
second quarter was 35.1%.

We are ahead of schedule with the integration of Star Markets and are
confident of generating the synergy benefits outlined at the time of the
acquisition of $40 million (1% of sales) from year three onwards.  The cost of
releasing these synergies in the current year will be an exceptional cost of
$20 million, or £12 million.

Impact of Non-recurring Items

We stated in our preliminary announcement on 2 June that non-recurring costs
will impact current year profitability in the first half.  To date this year
we have already announced exceptional costs of £42.5 million and will incur an
additional £12 million integration costs at Shaw's/Star Markets.  All of this
will be incurred in the first half and includes £27 million at Sainsbury's
Supermarkets resulting from action taken to reduce our cost base and £15.5
million at Homebase resulting from the removal of kitchen studios and
initiatives to improve the efficiency.  We also announced on 16 April 1999 a
£30 million one off cost relating to actions taken to grow top line sales.  

In line with latest financial reporting standards, we will provide for a
proportion of profit sharing in the first half. 

In addition, we are accelerating our investment in e-commerce. Our actions
this financial year will result in a total cost of £30 million of which £5
million will occur during the first half. 

The pattern of sales in the year is also unusual as it is affected by two
seasonal impacts: first the absence of Easter in the first half and, second, a
benefit from the Millennium in the second half.  

With the exception of profit sharing and e-commerce all of these items are
non-recurring.

Conference Call

Following today's announcement of J Sainsbury plc's Second Quarter trading
statement, Dino Adriano, Group Chief Executive, will make a statement via
conference call for analysts and shareholders at 09:30 UK time. The statement
will be followed by a 20 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 01.11.99.  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 844 then press hash on the telephone key pad.


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