Acquisition

Sainsbury(J) PLC
16 August 2004



16 August 2004


J Sainsbury plc announces acquisition of second convenience store chain


J Sainsbury plc today announces that it has acquired Jacksons Stores Ltd and its
wholly owned subsidiary Jacksons Stores 2002 Ltd ('Jacksons'), the UK's leading
independent, regional convenience store chain with 114 stores across Yorkshire
and the North Midlands.  All 2,350 members of staff and management will remain
with the business.


For the financial year ended 24 April 2004, Jacksons' turnover was £143 million.
The value of net assets acquired were £25.5 million at that date. This
acquisition has been completed on an unconditional basis.


Jacksons is widely regarded within the convenience store sector and recently won
'The Grocer' magazine's coveted 'Gold Award', being judged Britain's best
independent retail chain.  The stores are on average 1,875 sq ft and
predominately in neighbourhood locations.


The acquisition follows that of Bells Stores in February 2004 and the
appointment of Jim McCarthy to Sainsbury's Operating Board as managing director
of convenience in May 2004 and underlines the company's commitment to increase
its presence in the £23 billion a year UK convenience market - one of the
fastest growing segments in food retail.


In a similar approach to the one pursued at Bells Stores, where the first five
jointly branded 'Sainsbury's at Bells' stores are delivering positive results,
the Jacksons stores will operate as a separate business run by the current
strong management team from Jacksons' support centre.   Jacksons' supply chain
arrangements will remain in place as it benefits from its own warehouse and
distribution facilities and Sainsbury's will act as a supplier to their depot.
Sainsbury's and Jacksons will work together to combine Jacksons' strong local
offer and expertise in the convenience sector with Sainsbury's knowledge of
fresh and convenience foods.


In its convenience store portfolio, Sainsbury's currently has 67 Sainsbury's
Locals, 54 Bells Stores, and a further 22 in partnership with Shell UK Ltd.  The
acquisition of Jacksons results in excess of 250 convenience stores.


Justin King, chief executive of Sainsbury's said, 'When we announced the sale of
Shaw's, our US supermarket business in March 2004, we indicated that we would
use a proportion of the funds to expand further into the convenience sector and
this acquisition provides us with a great opportunity to do that.


'Within the past six months, we have secured the expertise of three of the most
highly regarded operators in the convenience industry - Jim McCarthy, Steven
Bell and now Angus Oughtred.   I think they will make a great team to develop
our convenience offer for shoppers.   Shareholders will benefit too as we create
real scale and expertise in this sector and we expect the deal will be earnings
enhancing in the first full year'


Jim McCarthy, managing director of convenience at Sainsbury's said, 'We are
delighted that we have been able to acquire Jacksons, particularly as customers
will benefit from the improved customer offer.  I look forward to working with
Angus and his team to develop a convenience offer which combines the strengths
of both our brands and makes Sainsbury's products more accessible to more
customers across the country.'



Angus Oughtred, Managing Director of Jacksons said, 'We are immensely proud of
all that we have achieved within Jacksons and we are delighted to have secured
this deal with Sainsbury's.  This is in the best long term interests of Jacksons
customers as it will enable us to continue to grow the business enhancing our
offer to local customers as well as retaining our employees under their current
employment terms.'



Notes:

1.  Jacksons stores is a wholly owned convenience store subsidiary of
    William Jackson and Son Ltd.

2.  The store estate includes 32 freehold and 4 long leasehold stores

3.  Jacksons employs 2,350 full and part-time staff.

4.  The acquisition of Jacksons will be earnings accretive in the first full
    year without including the benefits of any synergies.

5.  Jim McCarthy was a member of the management team, which built T&S
    Stores, and sold to Tesco in 2003.

6.  There are 55,000 conveneince stores in the UK, in a market worth £23
    billion and which grew at 7.3% in the past year.



Enquiries:

Investor relations                           Media
[phone]                         [phone]
Roger Matthews                               Gillian Taylor
Lynda Ashton






                      This information is provided by RNS
            The company news service from the London Stock Exchange