Interim Results & Dino Adriano's Comments

Sainsbury(J) PLC
23 November 1999



J Sainsbury plc - Interim Results 1999/2000

Dino Adriano, Group Chief Executive comments

'We have made good progress in changing Sainsbury's Supermarkets and driving
our offer forward.  Homebase, Shaw's and Sainsbury's Bank are well placed for
strong profit growth.

Our prospects in e-business are exciting, with our link with LineOne as the
first step to providing a range of benefits for customers and shareholders.'

Key Points
       
       
-  Programmes to drive sales growth and cut costs now well underway at
   Sainsbury's Supermarkets.
       
-  Value focus at Homebase drives like-for-like sales and market share growth.
   On track for profit growth over a comparative 12 month period.
       
-  Strong profit growth in Shaw's.  Integration of Star Markets progressing
   well.
       
-  Sainsbury's Bank moves into profit.
       
-  Group PBT before exceptional costs was £352 million.
       
-  Setting up a new e-business to position our strong supermarket and DIY
   brands on the internet.

Page 1 of 16

Review of Performance
(28 weeks ending 16 October 1999)

Group Summary

Group sales increased by 4.5% to £9.1 billion driven by strong sales
performance in Homebase and Shaw's.  Investment in new initiatives and price
to grow sales resulted in a 23.2% decline in the operating profit of
Sainsbury's Supermarkets in the first half.  This was the primary factor in
the decline in the Group's profit before exceptional costs and tax of 17.6% to
£352 million.

Both Shaw's and Sainsbury's Bank produced strong operating profit growth with
Shaw's up 36.2% and the Bank reporting an operating profit of £0.9 million
compared with a £3.6 million loss in the first half last year.


Sainsbury's Supermarkets

Performance

Total sales in the first half increased by 0.7% including a like-for-like
decline of 1.3%.  Inflation in the first half averaged 1.2%.  An increasingly
competitive market and the impact of the initial implementation of the
initiatives to drive our offer forward had an adverse effect on sales
performance.

Operating profit was adversely affected by the gross margin investment in
price, as well as the investment of £20 million on rebranding and top line
growth initiatives going forward.

The plans announced in June to restructure the economics of our business,
improve our stores and change the way we work are now underway.  The costs
savings target of £50 million, before associated costs of £30 million is
expected to be achieved.
       
Driving our offer forward

The following progress has been made on the six priorities set out for the
Supermarket business in our preliminary announcement on 2 June 1999.

Investing in our estate

- An additional 265,000 square feet of sales area to be added from extensions
  this financial year.  Nine stores extended and two refurbished in the first
  half. Extensions in the first half generated average year-on-year growth
  after extension of 7.2%.  
- By the end of the financial year, we expect to have completed 22 extensions 
  and 22 refurbishments with a further 8 expected to start on site.
- Extensions completed in the first half are significantly larger than before,
  increasing space by an average of 37% compared with 28% last year.

Managing space for Better Choice

- Average of 250 lines added to every store between May and July.
- Further action taken at 93 stores where we have introduced up to 800 
  additional lines through the use of wider gondolas coupled with more  
  effective use of space. 

Page 2 of 16
       
Changing the way we work

- Refreshing the Sainsbury's brand rolled out across the estate.
- Workshops held in all stores to communicate objectives to colleagues.
- Customer and colleague discussion groups taking place in all stores.

Delivering more and better customer service

- More staff available to help customers.
- Increased help at checkouts.

Stretching our quality lead

- Expanding our Organics range.
- Rigorous product quality improvement programme comparing own label products 
  with those of other food retailers and brands.
       
Delivering good value to all our customers

- Launch of price guarantee on 1,500 lines.
- Deeper, more focused promotions.
- More vigorous marketing to support price and promotions position including 
  radio and newspaper campaigns.


Homebase

Homebase again delivered impressive sales growth in the first half, generating
strong like-for-like sales growth adjusting for Easter of 12.3%.  On a
reported basis, like-for-like sales growth was 9.7%.  Operating profit
declined by 23.7% to £36.8 million due to the lack of Easter in the first half
and other seasonal trading differences, combined with a heavy initial
investment of gross margin and advertising to drive sales.  

On a comparable basis, operating profit at Homebase declined, as expected, by
6.0%.  Over a comparative 12 month period, Homebase is well positioned to
produce strong like-for-like sales performance, market share growth and an
operating profit increase.  The previously announced reduction in the cost
base of the business has now started, underpinning the profit improvement.

Homebase management is delivering the company's repositioning strategy as
planned.  A trial larger format store opened in Dundee in October and is
trading well.


E-business

J Sainsbury plc has entered into a partnership agreement with LineOne a
leading UK, subscription free, Internet Service Provider.  This enables us to
focus on developing, launching and being the leader in food & drink and home &
garden portals. 

We have already announced costs of £30 million arising this year relating to
the development of this plan.  Of this, around £15 million is likely to be
portal costs for 'food & drink', with £7 million for the 'home & garden'
portal.  Costs of £8 million will be incurred by the company's Orderline
activities this financial year.  The future level of on-going operating costs
will depend on the volume of users. 

Page 3 of 16

Shaw's/Star Markets

Shaw's benefited from strong promotional activity in the first half, resulting
in total first half sales growth, excluding Star Markets of 4.6%, including
like-for-like sales growth of 2.9%.  Sales growth including Star Markets was
22.5%.  Inflation over the period averaged 2%.  

The improvement in performance from the Connecticut stores coupled with strong
sales growth contributed to operating profit growth excluding Star Markets of
26.0% in the first half.


Sainsbury's Bank

Sainsbury's Bank reported operating profits of £0.9 million for the first
half, an improvement of £4.5 million over the previous year.  A number of new
products were launched in the first half including Drive, a car purchase
finance scheme, a Stepped Rate Savings Bond and an annual travel insurance
policy.


Egyptian Distribution Group SAE (Edge)

Last month, we acquired an additional 55% of Edge, our Egyptian supermarket
chain, from our partners.  Edge operates 94 neighbourhood stores in the Cairo
area.  The initial consideration was £29 million, with a further potential
performance related payment.  We now own 80.1% of the ordinary share capital. 
This acquisition gives us a leadership position in Egypt.


Finance

- Cash outflow before financing was £483 million in the first half, in part 
  due to the acquisition of Star Markets. Consequently, net debt increased to 
  £1.2 billion as at 16 October 1999.

- Group capital expenditure for the first half totalled £354 million.  It is 
  expected that Group capital expenditure for the year will be around £860 
  million.

- The underlying tax rate for the year is expected to be 31.7% compared to  
  31.25% reported last year.

- We completed our Year 2000 compliance programmes on systems and 
  infrastructure at the end of October.  Project teams are now concentrating 
  on event planning and business continuity initiatives.  Group costs for the 
  current year are expected to be £4 million resulting in a total Year 2000   
  cost of £54 million.

Page 4 of 16

Dividend and Share Capital

The Board has declared an interim dividend of 4.02p per share (1998: 4.02p) to
be paid on 14 January 2000 to shareholders on the register of members at the
close of business on 10 December 1999.


Outlook

We have made real progress with the six priorities we set ourselves for
Sainsbury's Supermarkets in June.  The business is now undergoing an extensive
programme of change.  Trading in the second half is dependent on the crucial
Christmas and Millennium periods.  We are confident of meeting our target of
positive like-for-like sales growth by the end of this financial year.

Homebase, Shaw's and Sainsbury's Bank are well positioned for future profit
growth.

Page 5 of 16

The unaudited Group Profit and Loss Account for the 28 weeks to 16 October
1999, compared with the 28 weeks to 17 October 1998, is set out below.  The
unaudited Group Profit and Loss Account presented in accordance with FRS3 has
been subject to an interim review by our auditors PricewaterhouseCoopers and
is set out on page 11.

                                    Note 28 weeks  28 weeks          28 weeks
                                         to 16     to 17             to 19
                                         October   October           September
                                         1999      1998*    % Change 1998*    
     
£million 
GROUP SALES (including taxes)        2   9,053     8,661      4.5    8,667 
                                                               
GROUP OPERATING PROFIT BEFORE
YEAR 2000 AND EURO COSTS,EXCEPTIONAL
COSTS AND PROFIT SHARING             2     399       494    -19.3      502    
                               
Year 2000 and Euro costs                    (4)      (18)              (18)
Associated Undertakings - 
  share of (loss)/profit                    (1)        9                 9 
Profit sharing                       3     (10)      (26)              (27)
Net interest payable                       (32)      (32)              (32)

GROUP PROFIT BEFORE TAX,EXCEPTIONAL 
COSTS AND PROPERTY PROFITS                 352       427    -17.6      434    
Exceptional severance and 
integration costs                    4     (55)      (17)              (17)
Property profits                             -        11                11 
                                                               
GROUP PROFIT BEFORE TAX                    297       421    -29.5      428 
Tax                                  5     (94)     (128)             (131)   
GROUP PROFIT AFTER TAX                     203       293               297 
Minority equity interest                     -         1                 2 
PROFIT FOR THE FINANCIAL PERIOD            203       294               299 
                                                                  
EQUITY DIVIDENDS                           (77)      (77)              (77)
                                                                  
PROFIT RETAINED                            126       217               222  
                                                                  
EARNINGS PER SHARE                   6    10.6p     15.4p   -31.2     15.7p   
                                                                  
Earnings per share before exceptional
costs and property profits           6    12.5p     15.5p   -19.4     15.7p   
          
DILUTED EARNINGS PER SHARE                                                    
- before exceptional costs 
  and property profits               6    12.5p     15.3p   -18.3     15.6p
                                   
DIVIDEND PER SHARE                         4.02p     4.02p             4.02p
                                                          
*  The 1998 interim results published in October 1998 covered the 28 weeks to
19 September 1998.  To facilitate comparisons, the above summary also presents
the 28 weeks to 17 October 1998 (see note 1).  The 1998 results have been
restated to include a provision for profit sharing (see note 3).

Page 6 of 16

Notes to the Results

1. Accounting policies and financial period
The financial information has been prepared using the accounting policies set
out in the 1999 Annual Accounts.

The 1999 financial year covered a 56 week period rather than 52 weeks.  To
facilitate comparison, where appropriate, information for the 28 weeks to 17
October 1998 is presented in addition to the 28 weeks to 19 September 1998
which was published at the first half stage last year.

2. Analysis of Group sales and operating profit       

                                         28 weeks  28 weeks          28 weeks
                                         to 16     to 17             to 19
                                         October   October           September
                                         1999      1998     % Change 1998    
Sales (£ million)                                            
Sainsbury's Supermarkets                 6,924.2   6,875.5     0.7   6,878.5
Homebase                                   778.9     707.8    10.0     715.9
Shaw's                                   1,246.4     987.8    26.2     984.3
Sainsbury's Bank                            64.9      72.5              70.6
JS Developments                             38.2      17.0              17.0  
Other operating activities                   0.0       0.5               0.5  
Group Sales                              9,052.6   8,661.1     4.5   8,666.8 
                                                        
Sainsbury's Supermarkets                   319.0     415.3   -23.2     428.9
Homebase                                    36.8      48.2   -23.7      43.2
Shaw's                                      38.7      27.6    40.2      27.9
Sainsbury's Bank                             0.9      (3.6)             (4.4)
JS Developments                              3.2       6.0               6.0
Other operating activities                   0.3       0.6               0.7 
Group operating profit                     398.9     494.1   -19.3     502.3 
                            
Shaw's sales and operating profit 
($ million)                            
Sales                                    2,007.4   1,639.1    22.5   1,628.0
Operating profit                            62.4      45.8    36.2      46.0

Shaw's sales and operating profit have been translated at an average exchange
rate for the period of £1 = $1.61 (28 weeks to 17 October 1998: £1 = $1.66, 28
weeks to 19 September 1998: £1 = $1.65).
       
Shaw's sales and operating profit for 1999 include $295.1 million and $4.7
million respectively in respect of Star Markets, which was acquired on 28 June
1999 (see note 10).

Operating profit is shown before deducting Year 2000 and Euro costs, which
represents the incremental costs incurred in converting computer software to
deal with the Year 2000 date change and the introduction of the Euro, and
before profit sharing and exceptional costs (see note 4).

Included in the above operating profit is a loss of £5 million relating to the
Group's entry into e-commerce.  As development of this business accelerates,
the revenue investment will grow to around £30 million for the full year when
there will be a separate disclosure for this activity.

3. Employee profit sharing scheme
Provision has been made in the Interim Accounts towards the end of year
allocation of profit to the profit sharing fund for eligible employees in the
UK retail companies.  This provision is calculated on the actual results for
the 28 weeks to 16 October 1999 whereas the allocation under the Scheme will
be calculated by reference to the results for the full year.  Prior year
comparatives have been restated on the same basis.  The annual cash payment to
employees will continue to be made in August.

Page 7 of 16

4. Exceptional costs

The exceptional costs comprise the following:
                                                  £m
Sainsbury's Supermarkets                         27.3
Homebase                                         15.4
Shaw's                                           12.2
                                                 54.9
The costs incurred in Sainsbury's Supermarkets were the result of simplifying
central and store operations and streamlining the store management structure. 
The integration of Savacentre into Sainsbury's Supermarkets is now complete.  

Homebase has closed 99 kitchen studios which were loss making and is utilising
the space released for extending its own range of products.  The costs of
closure amounted to £11.4 million.  Homebase has also simplified its
operations which resulted in associated severance costs of £4 million.

The exceptional costs at Shaw's all relate to the integration of the recently
acquired Star Markets business (see note 10).

5. Tax
The tax charge for the first half of the current year is based on the
estimated tax charge for the full year at a rate of 31.7 per cent (1998 :
31.25 per cent).

6. Earnings per share
The calculation of earnings per share is based on profit after tax and
minority interest, divided by the weighted average number of ordinary shares
in issue during the period. 

For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares.  The group has only one category of dilutive potential ordinary
shares: those share options granted to employees where the exercise price is
less than the average market price of the company's ordinary shares during the
period.

                                                   28 weeks to                
                      
                                         16 October   17 October  19 September
                                         1999         1998        1998
Weighted average exercise price 
of exercisable share option (£)           3.48         3.60        3.60
Average share price in period (£)         3.96         5.23        5.16
Dilution ratio applied in exercisable 
share options (%)                        12.1         31.2        30.2
Weighted average of exercisable 
share options (million)                  53.3         67.6        67.2 
Dilution effect of exercisable 
share options (million)                   6.5         21.1        20.3
Weighted average of shares in 
issue (million)                       1,917.2      1,906.0     1,903.8
Total shares for calculating 
diluted earnings per share            1,923.7      1,927.1     1,924.1

Page 8 of 16

7. Current assets and creditors of Sainsbury's Bank

                                         16 October   19 September 3 April
                                         1999         1998         1999
                                         £m           £m           £m 
Current assets                     
Treasury bills and other eligible bills    69            9           83 
Loans and advances to banks               829        1,359        1,212 
Loans and advances to customers*          512          285          398 
Debt securities                           244           93           48 
Prepayments and accrued income             28           24           25 
                                        1,682        1,770        1,766 
Creditors: due within one year                     
Customer accounts                       1,555        1,648        1,653 
Accruals and deferred income               32           35           16 
                                        1,587        1,683        1,669 


* Loans and advances to customers include £244 million of loans and advances
repayable in more than one year (1998 : £110 million).

In addition to the above assets, Sainsbury's Bank had other assets of £5
million at 16 October 1999 (1998 : £4 million).

8. Reconciliation of operating profit to net cash inflow from operating
activities

                                                  28 weeks         56 weeks
                                                  ended            ended
                                         16 October   19 September 3 April
                                         1999         1998*        1999
                                         £m           £m           £m        
Operating profit before profit sharing    340          467          881 
Profit sharing                            (10)         (27)         (45)
Depreciation                              209          189          388 
Loss on sale of equipment, 
fixtures and vehicles                       -            -            6 
Increase  in stocks                      (177)         (68)         (75)
Increase in debtors                       (19)          (7)         (73)
(Decrease)/increase in creditors          (33)         184          261 
Decrease/(increase) in Sainsbury's 
Bank current assets                        84         (185)        (182)
(Decrease)/increase in Sainsbury's 
Bank creditors                            (82)         182          166 
                                          312          735        1,327 
Payments against provisions                (1)           -           (5)
                                           311         735        1,322

* Restated for provision for profit sharing.

Page 9 of 16

9. Analysis of net debt

                        At 3   Cash  Other      Debt in      Exchange  At 16 
                        April  Flow  non-cash   subsidiaries movements October
                        1999         movements  acquired               1999   
                        £m     £m    £m         £m           £m        £m
Cash and liquid funds   742   (351)     -          -          (8)      383 
Overdrafts             (128)   (61)     -          -           1      (188)
                              (412)                            
Debt due within 1 year (532)   (75)     -        (72)         16      (663)
Debt due after 1 year  (653)     4      -          -           8      (641)
Finance leases         (133)     3     (4)         -           5      (129)
                               (68)                                           
          
Total                  (704)  (480)    (4)       (72)         22    (1,238)

10. Acquisitions

Star Markets

On 28 June 1999, Shaw's Supermarkets Inc. acquired the entire share capital of
Star Markets Inc. for a total consideration of $497 million including debt
acquired.  Star Markets operates 52 supermarkets, mainly in the greater Boston
area.

In the year ended 30 January 1999, Star Markets reported sales of $1.06
billion, earnings before interest, tax and depreciation of $54.6 million and a
loss before tax, after financing costs, of $5.3 million.  The company is being
integrated into the operations of Shaw's Supermarkets with targeted synergies
of $40 million per annum.

A fair value exercise is near completion and the results of this will be
disclosed in the full year accounts.  It is anticipated that goodwill arising
will amount to around $350 million (£209 million).  This goodwill is assumed
to have an indefinite life and will be subject to an annual impairment test.

Hampden Group PLC

On 1 October 1999, Homebase Group Limited acquired a further 24.3% of the
ordinary share capital of Hampden Group PLC to bring its total ownership to
53.5%.  It subsequently made a recommended offer to purchase the remaining
shares.  At 16 October 1999, Homebase owned 58.8% of the share capital and
Hampden was consolidated as a subsidiary.  The consideration for the 70.8% of
share capital not owned prior to 1 October 1999 is estimated at £14 million.  

Hampden operates seven Homebase stores in Northern Ireland and three stores in
the Republic of Ireland through a franchise agreement.  In the year ended 2
January 1999, Hampden Group reported sales of £43 million and a profit before
tax of £1 million.

Egyptian Distribution Group SAE

On 20 October 1999, J Sainsbury plc acquired a further 55% of the ordinary
share capital of the Egyptian Distribution Group SAE ('Edge') taking its
ownership up to 80.1%. The consideration comprises an initial cost of £29
million with a further potential performance related payment.  Edge operates
94 small supermarkets in Greater Cairo.

11. Status of financial information

The half year interim results are unaudited but have been reviewed by the
auditors.  The financial information presented herein does not amount to full
accounts within the meaning of Section 240 of the Companies Act 1985 (as
amended).  The figures for the 56 weeks to 3 April 1999 have been extracted
from the 1999 Annual Accounts which have been filed with the Registrar of
Companies.  The audit report on the 1999 Annual Accounts was unqualified and
did not contain a statement under Section 237 (2) or (3) of the Companies Act
1985.

The company's results will be published in the Interim Statement which will be
posted to shareholders on 30 November 1999.  Copies will also be available
from J Sainsbury plc, Stamford House, Stamford Street, London SE1 9LL and at
its paying agents Citibank, N.A., 336 Strand, London, WC2R 1HB and Chase
Manhattan Bank, Trinty Tower, 9 Thomas More Street, London, E1 9YT.

Page 10 of 16

Group profit and loss account
(FRS3 format)

                                    Note   28 weeks    28 weeks    56 weeks
                                           to 16       to 19       to 3
                                           October     September   April
                                           1999        1998*       1999
                                          (unaudited) (unaudited) (audited)   
                                           £m          £m          £m 
Group sales including VAT 
and sales taxes                      2     9,053       8,667       17,587 
VAT and sales taxes                          585         572        1,154 
Group sales excluding VAT 
and sales taxes                            8,468       8,095       16,433 
Cost of sales and administrative
expenses                                   8,069       7,593       15,501 
Exceptional cost of sales            4        55          17           21 
Year 2000 and Euro costs                       4          18           30 
Group operating profit before 
profit sharing                               340         467          881 
Profit sharing                       3        10          27           45 
Group operating profit                       330         440          836 
Associated Undertakings - 
share of (loss)/profit                        (1)          9           12 
Profit on sale of properties                   -          11           11 
Profit on disposal of an associate             -           -           84 
Profit on ordinary activities 
before interest                              329         460          943 
Net interest payable                          32          32           55 
Profit on ordinary activities 
before tax                                   297         428          888 
Tax on profit on ordinary 
activities                           5        94         131          292 
Profit on ordinary activities 
after tax                                     203        297          596 
Minority equity interest                        -          2            2 
Profit for the financial period               203        299          598 
Equity dividends                               77         77          294 
Retained profit                               126        222          304 

Earnings per share                   6       10.6p      15.7p         31.4p 
Exceptional cost of sales                     1.9p       0.6p          0.7p 
Profit on sale of properties 
and disposal of associate                     -         (0.6p)        (2.9p)
Earnings per share before exceptional 
cost of sales, profit on sale of 
properties and disposal of 
an associate                         6       12.5p      15.7p         29.2p 
                            
Diluted earnings per share           6       10.5p      15.6p         31.1p 
                            
Diluted earnings per share before 
exceptional cost of sales, profit 
on sale of properties and 
disposal of an associate             6       12.5p      15.6p         29.0p 

* Restated for provision for profit sharing

Page 11 of 16

Group statement of total recognised gains and losses

                                           28 weeks    28 weeks    56 weeks
                                           to 16       to 19       to 3
                                           October     September   April
                                           1999        1998*       1999
                                          (unaudited) (unaudited) (audited)   
                                           £m          £m          £m
Profit for the financial period            203         299         598

Currency translation differences 
on foreign currency net investments         (7)          4           5 

Total recognised gains and losses 
relating to the financial period           196         303         603 
 
* Restated for provision for profit sharing       
       
There is no material difference between the above profit for the period and
the historical cost equivalent.


Reconciliation of movements in equity shareholders' funds


                                           28 weeks    28 weeks    56 weeks
                                           to 16       to 19       to 3
                                           October     September   April
                                           1999        1998*       1999
                                          (unaudited) (unaudited) (audited)   
                                           £m          £m          £m
Profit for the financial period            203         299         598 
Equity dividends                           (77)        (77)       (294)
                                           126         222         304 
Currency translation differences            (7)          4           5 
Goodwill added from reserves                 -           -         148 
New share capital subscribed 
less expenses of capital issues              9          41          68 
Amounts deducted from the profit 
and loss account for shares issued 
to the QUEST                                (1)          -          (6)
       Other                                 -           -          (2)
Net movement in equity shareholders' funds  127        267         517 
Opening equity shareholders' funds        4,644      4,127       4,127 
Closing equity shareholders' funds        4,771      4,394       4,644 

* Restated for provision for profit sharing

Page 12 of 16

Group balance sheet

                                           16 October  19 September 3 April
                                           1999        1998*        1999
                                          (unaudited) (unaudited)  (audited)  
                                            £m          £m          £m 
                                    Note
Fixed assets                            
  Tangible assets                           6,605       6,216       6,409 
  Intangible assets                           223          -            8 
  Investments                                  50         150          33 
                                            6,878       6,366       6,450 
Current assets                            
  Stocks                                    1,069         798         843 
  Debtors                                     291         191         249 
  Investments                                  19          15          17 
  Sainsbury's Bank                   7      1,682       1,770       1,766 
  Cash at bank and in hand                    364         313         725 
                                            3,425       3,087       3,600 
Creditors: due within one year                            
       Sainsbury's Bank              7     (1,587)     (1,683)     (1,669)
       Other                               (3,084)     (2,415)     (2,880)
                                           (4,671)     (4,098)     (4,549)
Net current liabilities                    (1,246)     (1,011)       (949)
Total assets less current liabilities       5,632       5,355        5,501 
Creditors: due after one year                (804)       (909)       (804)
Provisions for liabilities and charges         (7)        (11)         (8) 
Total net assets                            4,821        4,435       4,689 
Capital and reserves                            
       Called up share capital                480          478         480 
       Share premium account                1,368        1,334       1,359 
       Revaluation reserve                     38           39          38 
       Profit and loss account              2,885        2,543       2,767 
Equity shareholders' funds                  4,771        4,394       4,644 
       Minority equity interest                50           41          45 
Total capital employed                      4,821        4,435       4,689 

* Restated for provision for profit sharing

Page 13 of 16

Group cash flow statement

                                           28 weeks    28 weeks    56 weeks
                                           to 16       to 19       to 3
                                           October     September   April
                                           1999        1998*       1999
                                          (unaudited) (unaudited) (audited)   
                                           £m          £m          £m 
                                     Note
Net cash inflow from operating 
activities                             8      311         735       1,322 
Dividends received from 
Associated Undertakings                         -           3           3 
Returns on investments and 
servicing of finance                            
  Interest received                            15          28          46 
  Interest paid                               (35)        (59)       (113)
  Interest element of finance 
      lease rental payments                    (9)         (8)        (16)
Net cash outflow from returns on 
investments and servicing of finance          (29)        (39)        (83)

Tax paid                                       (7)        (23)       (287)
Capital expenditure and 
financial investment                           
   Payments for tangible fixed assets        (322)       (399)       (803)
   Receipts from sale of tangible 
       fixed assets                            24          63         107 
       Purchase of investments                (21)          -          (2)
Net cash outflow from capital 
expenditure and financial investment         (319)       (336)       (698)
Acquisitions and disposals                            
  Acquisition of Star Markets Inc.        
  - cash consideration plus costs            (225)          -           -
  - cash balances acquired with subsidiary      1           -           - 
       
  Investment in Hampden Group PLC        
  - cash consideration plus costs              (4)          -           -
  - cash balances acquired with subsidiary      3           -           - 
       
  Investment in Sainsbury's Bank by 
    minority shareholder                        -           5           9 
       
  Investment in Egyptian Distribution Group SAE -           -         (11)
  Proceeds from disposal of Giant Food Inc.     -           -         345 
  Proceeds from disposal of other 
    fixed asset investments                     1           2           3 
Net cash (outflow)/inflow from acquisitions
  and disposals                              (224)          7         346 
Equity dividends paid                        (217)       (171)       (249)
Management of liquid resources                  2           -           3 
Financing                            
   Issue of ordinary share capital              3          18          38 
Debt due within a year                               
   Increase/(decrease) in short-term 
      borrowings                               75          (4)        188 
Debt due beyond a year                            
   Decrease in long-term borrowing             (4)         (4)         (9)
   Capital element of finance lease 
      rental payments                          (3)         (3)         (6)
Net cash inflow from financing                  71          7         211 
(Decrease)/increase in cash in the period     (412)       183         568 

Reconciliation of net cash flow to movement in net debt                       

(Decrease)/increase in cash in the period     (412)       183         568 
Cash (inflow)/outflow from (increase)/
 decrease in debt and lease financing          (68)        11        (173)
Debt in subsidiaries acquired                  (72)         -           - 
New finance leases                              (4)       (13)        (17)
Currency translation difference                 22         19          (5)
Movement in net debt in the period            (534)       200          373 
Net debt at the beginning of the period 9     (704)    (1,091)      (1,077)
Net debt at the end of the period       9   (1,238)      (891)        (704)

Page 14 of 16

Review report by the Auditors to the Board of
Directors of J Sainsbury plc


Independent Review Report to J Sainsbury plc

We have been instructed by the company to review the financial information set
out on pages 7 to 14 and we have read the other information contained in the
interim report for any apparent misstatements or material inconsistencies with
the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.  The Listing
Rules of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board.  A review consists principally
of making enquiries of management and applying analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.  A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions.  It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance  than an audit.  Accordingly we do not express an audit opinion on
the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the 28 weeks
ended 16 October 1999.


 


PricewaterhouseCoopers
Chartered Accountants and Registered Auditors
1 Embankment Place
London
WC2N 6NN                                                 22 November 1999


Page 15 of 16

1999/2000 Factfile 
(28 weeks ending 16 October 1999)

Group
- Total sales up by 4.5% to £9.1 billion 
- Group operating profit before Year 2000 and Euro costs, exceptional costs 
  and profit sharing of £399 million, a decline of 19.3% 
- Group profit before tax, exceptional costs and property profits of £352m, a 
  decline of 17.6%

Sainsbury's Supermarkets
- Sales up by 0.7% to £6.9 billion  
- Operating profit declined by 23.2% to £319 million 
- Opened 8 new stores and extended 9 stores 
- Reward Card penetration up to 13 million customers accounting for 83.9% of 
  sales 

Homebase
- Total sales up 10% to £0.8 billion 
- Operating profit decreased on a calendar basis by 23.7% to £36.8m. On a 
  comparable trading basis, operating profit declined by 6.0% 
- Opened 2 new stores  
- Closed 99 remaining kitchen studios 
- Spend and Save Card penetration up to c.5 million customers accounting for 
  52% of sales

Shaw's/Star Markets
- Operating profit up 40.2% to £38.7 million (up 36.2% to $62.4 million).  
  Total sales up 26.2% to £1.2 billion (up 22.5% to $2.0 billion) 
- Like-for-like sales growth was 2.9% 
- Opened 2 new stores

Sainsbury's Bank
- Customer deposits total £1.6 billion while the loan book stands at £500 
  million. 
- Introduced 3 new products, (Drive, Stepped Rate Savings Bonds and annual 
  travel insurance), to bring the total to 12

Edge
- Ownership in Edge increased to 80.1% on 20 October 1999 
- Operates 94 neighbourhood stores in the Cairo area


For enquires
Investor Relations:  Amanda Cobb - 0171 695 6215
Press Office: Pip Wood - 0171 695 6127 

Page 16 of 16