3rd Quarter Trading Statement

Sainsbury(J) PLC
14 January 2000


J Sainsbury plc ('Sainsbury's')


New Group Chief Executive and Senior Management Appointments
Trading Statement for the 12 weeks ended 8 January 2000 
------------------------------------------------------------


- Sir Peter Davis will become the new Group Chief Executive of Sainsbury's 
  with effect from 1st March 2000.

- Sainsbury's Supermarkets total sales up 4.0% including like-for-like sales
  growth of 2.0% benefiting from strong trading over the Christmas period.

- Homebase total sales up 17.3% including like-for-like sales growth of 13.6%.

- US Supermarkets total sales up by 31.6% including Shaw's like-for-like sales
  growth of 2.9%.

- Higher operating costs in the UK Supermarkets business will impact Group
  results for the current year.  Group profit before tax, exceptional costs
  and property profits is, therefore, estimated to be between £560 million 
  and £610 million, which is at the lower end of current market expectations.
  Exceptional costs for this year are currently estimated at £60 million.

- The Sainsbury Family has expressed its strong support for the appointment 
  of Sir Peter Davis as Group Chief Executive.

Sir George Bull, Chairman of Sainsbury's, commenting on Sir Peter Davis'
appointment said: 'In December the Board of Sainsbury's decided that in the
light of the increasing pressures within UK Supermarkets and the pace of
change within the retail sector, a more radical programme of change was
required.  The Board decided it would be necessary to appoint a new Group
Chief Executive and approached Peter Davis.   Peter has helped to create
substantial shareholder value at the Prudential and has extensive experience
of implementing change.  He has previous experience of our industry as a
result of his years with Sainsbury's between 1976 and 1986.  This, combined
with his knowledge of financial services, international business, consumer
marketing and e-commerce will be of vital benefit to the Group.'


Sir Peter Davis commented: 'I am delighted to be rejoining Sainsbury's and to
being involved with the business again after 14 years.  I look forward to
developing the strategy for the way ahead and to delivering value for our
shareholders.  I shall be working closely with David Bremner, with whom I have
already had some very productive conversations on Sainsbury's Supermarkets,
and we shall be giving a presentation on the strategy for this business with
the Group's preliminary results which will be announced in May.'


Sir George Bull, commenting on Dino Adriano said: 'We thank Dino for his
services in many roles over the last 35 years and the significant contribution
he made to the business including, in previous years, his role in establishing
and building-up our Homebase business.    Since taking on the role of Group
Chief Executive in the last two years, Dino has made substantial changes to
our UK Supermarket business towards improving its sales performance.  We also
appreciate Dino's agreement to stay on until the end of May to assist in the
transition.'


Dino Adriano said: 'Last Spring I initiated a programme of change to address
the challenges faced by our UK Supermarket business.  As the sales figures
published today show, these changes are starting to take effect.  Peter Davis
is a substantial business figure with a proven record of implementing change. 
I wish him every success and will do all I can to assist in his
familiarisation with the business.'



Appointment of new Group Chief Executive
----------------------------------------

Sainsbury's announces that Sir Peter Davis will become the new Group Chief
Executive with effect from 1st March 2000.  Sir Peter Davis has been Chief
Executive of Prudential since 1995.  Prior to this he was Chief Executive and,
subsequently, Chairman of Reed International from 1986 to 1994.  He was at
Sainsbury's from 1976 to 1986 as Marketing Director and then Assistant
Managing Director.

Dino Adriano will be resigning as Group Chief Executive with effect from 29
February 2000 but will continue as an executive director of Sainsbury's until
31 May 2000 at which time he will retire.  During this period, Dino Adriano
will help Sir Peter Davis with the transition and will progressively handover
his responsibilities for Homebase, US Supermarkets, Edge and the Bank.


Other Management Changes
------------------------

Robin Whitbread will move to a new position as Corporate Development Director
reporting to the Group Chief Executive.

David Bremner, Deputy Group Chief Executive and the new Managing Director of
Sainsbury's Supermarkets Ltd. ('SSL'), announces the following management
changes on the SSL Board:-

Sara Weller joins the business as Marketing Director from Abbey National where
she was Retail Marketing Director.

Kevin McCarten has been appointed to a new position of Stores Director, moving
from his previous position as Marketing Director.

John Adshead is appointed Resources and Services Director responsible for
Human Resources, Information Technology and Supply Chain.

Stuart Mitchell will assume interim responsibility for the Commercial
Division.  A search will be conducted for the position of Commercial Director.


Support of the Sainsbury Family
-------------------------------

Lord Sainsbury of Preston Candover, Mr Simon Sainsbury, Sir Timothy Sainsbury
and Miss Judith Portrait, in her capacity as Trustee of the Blind Trust for
Lord Sainsbury of Turville, have indicated their strong support for the
appointment of Sir Peter Davis as Group Chief Executive.


J Sainsbury plc - Third Quarter Trading Statement
for the 12 weeks to 8 January 2000
-------------------------------------------------


                     Takings    Total Sales Growth    Like-for-Like Sales
                       (£m)            (%)                 Growth (%)
                        Q3        YTD        Q3         YTD         Q3

Sainsbury's
  Supermarkets        3,304       1.7%      4.0%       -0.3%       2.0%

Homebase*               334      14.2%     17.3%       12.7%      13.6%

US Supermarkets**      $939      24.9%     31.6%        2.9%       2.9%

*  Homebase YTD figures are adjusted for the effect of an earlier Easter.
   Homebase total sales growth for Q3, excluding Hampden, is 14.0%
** Excluding sales taxes.  Shaw's Q3 total sales growth, excluding Star
   Markets, is 2.2%

In the third quarter, total Group sales, excluding Sainsbury's Bank and
property, increased by 8.4%, of which like-for-like sales growth was 3.2%

In the second half of the year, higher operating costs in the UK Supermarkets
business, particularly in the areas of property, distribution and store
labour, will impact Group results for the current year.  Group profit before
tax, exceptional costs and property profits is, therefore, estimated to be
between £560 million and £610 million, which is at the lower end of current
market expectations.  Exceptional costs for this year are currently estimated
at £60 million.


Sainsbury's Supermarkets
------------------------

Total sales for Sainsbury's Supermarkets grew by 4.0% during the third quarter
including like-for-like sales growth of 2.0%.  These results benefited from
strong trading over the unique Christmas and millennium period.  Inflation
over the quarter averaged 0.1% due to petrol price inflation.  Underlying food
price inflation was negative.

The new UK Supermarkets management team will give a presentation on their
strategy in conjunction with the preliminary results for 1999/2000 on 31 May
2000.


Homebase
--------

Homebase produced another excellent sales performance against tougher
comparatives and in an increasingly competitive market during the third
quarter, with total sales growth of 17.3%.  Excluding Hampden Group PLC, in
which we took a majority shareholding on 1 October 1999, total sales growth
for the third quarter was 14.0%.  Like-for-like sales growth in the third
quarter was 13.6%.

Our two trial larger format stores in Dundee and Greenwich have been trading
extremely well since opening at the end of 1999, generating sales densities of
over twice that of the stores they replaced.


US Supermarkets
---------------

Total sales for the US Supermarkets grew by 31.6% in the third quarter
reflecting the contribution from the acquisition of Star Markets.  Shaw's
like-for-like sales growth in the third quarter was 2.9%.

The integration of Star Markets continues to go well, with the main focus now
being on supply chain benefits.


Inquiries:-
---------

Sir George Bull       (Chairman)              0171 695 6127
Roger Matthews        (Finance Director)      0171 695 6215
Amanda Cobb           (Investor Relations)    0171 695 6215
Pip Wood              (Press)                 0171 695 6127