Trading Statement

Sainsbury(J) PLC
24 July 2002



              J Sainsbury plc - First Quarter Trading Statement

J Sainsbury plc, the major UK and US food retailer, today issued its first
quarter trading statement for the 12 weeks to 22 June 2002.


Sainsbury's Supermarkets (UK)
   •    Total sales up 3.6%(1)
   •    Like-for-like sales growth up 3.1%(1)

(1) excluding petrol and Easter adjusted

Shaw's (US)
   •    Total sales up 2.2%(2)
   •    Like-for-like sales growth up 0.5 %(2)

(2) Easter adjusted


Sir Peter Davis, group chief executive, will say at the J Sainsbury plc 2002
Annual General Meeting today:

'We have reported like-for-like sales growth in the first quarter for the UK and
US businesses of 3.1%(1) and 0.5%(2) respectively.  During this quarter, despite
facing a number of challenges, the group has performed satisfactorily and I
remain confident that real progress is being made.'

'In the UK, growth in the market has definitely slowed and inflation has been
lower.  In the first quarter statement last year we reported an improved step
change in sales performance, which has meant that the comparatives are harder
this year.  In addition, we have experienced a short term impact from our
decision to terminate the Air Miles contract, which we estimate affected our
like-for-like growth in the quarter by around 1%. Nevertheless, we finished the
quarter more strongly than we started it.  We remain confident that the launch
of the enhanced 'Nectar' loyalty card this autumn will prove attractive to
customers.  Taking this into account, and the phasing of our reinvigorate
programme, we expect to achieve a stronger second half performance.

'Shaw's, in the US, reported total sales growth of 2.2%(2) and like-for-like
growth of 0.5%(2).  In line with other US food retailers, Shaw's has experienced
difficult economic conditions during the first quarter.

'This quarter's performance in the UK should be seen in the context of our
recovery programme, which remains on track, and delivered restored profits and
dividend growth last year.   In anticipation of slower market growth than last
year, we continue to focus on cost reductions and are confident of delivering
the increased cost saving targets of £700m by March 2004, committed to at our
Preliminary results.

'We are encouraged by the results of the recent new store format trials and
their ability to drive future sales growth.  Since the Preliminary results we
have successfully opened two further mixed mission town centre stores, in
Southport and Muswell Hill (London), bringing the total to six.   We plan to
open a second new format Savacentre store with broad appeal in Wigan on 1 August
2002.

The group's interim results will be published on Wednesday 20th November 2002.

                                   Sainsbury's Supermarkets                           Shaw's

Unaudited first quarter sales
                                      Excluding Petrol          Including Petrol

                                   Q1 2002/03  Q1 2001/02   Q1 2002/03   Q1 2001/02   Q1 2002/03  Q1 2001/02

Total sales growth                    3.6%        8.6%         3.1%         8.0%         2.2%        7.2%
Net new space added                   0.5%        2.6%         0.4%         2.4%         1.7%        3.4%
Like for like sales growth            3.1%        6.0%         2.7%         5.6%         0.5%        3.8%

Notes:

A. Sainsbury's Supermarket's inflation in Q1 was (0.2)% including petrol, and
0.5% excluding petrol.

B. All the numbers in this statement have been calculated on a comparable basis
with last year, adjusting for Easter.


For enquiries:

Investor Relations        [phone]          Media       [phone]
Roger Matthews                                          Jan Shawe
Lynda Ashton                                            Mandy Pursey
Jennifer van der Eem


Notes:

1    At our Preliminary results on 29 May 2002, we announced an increase in
     our cost saving target from £600m to £700m by March 2004.

2    Four of the UK's best known companies, Sainsbury's, Barclaycard,
     Debenhams, and BP, are coming together to create a revolutionary loyalty
     programme that is expected to sign up 50 per cent of all UK households, 
     making it the largest and most comprehensive loyalty programme the UK has 
     ever seen.

     The new programme, Nectar, will be available to consumers from the autumn,
     offering them an unrivalled ability to collect points from more than 1,800
     Sainsbury's, Debenhams and BP outlets and with all Barclaycard purchases. 
     Points collected in the Nectar programme card will be exchangeable for a 
     wide range of rewards like grocery shopping, consumer goods, flights, 
     holidays, restaurant meals, family days out and cinema tickets.

     The significant advantages for the sponsors will include access to shared
     resources, increased customer loyalty and the opportunity to attract new
     customers. In addition each founding sponsor will have sector exclusivity 
     within the programme.




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