Trading Statement

Sainsbury(J) PLC
23 July 2003

23 July 2003

J Sainsbury plc - First Quarter Trading Statement

J Sainsbury plc today issued its first quarter trading statement for the 12
weeks to 21 June 2003.

Sainsbury's Supermarkets (UK)
•         Total sales up 2.0% (a)
•         Like-for-like sales growth of 0.3% (a)
•         Business Transformation Programme begins to deliver benefits

Shaw's (US)

•         Total sales up 1.1% (b)
•         Like-for-like sales growth of 0.8% (b)

At the J Sainsbury plc 2003 Annual General Meeting today, Sir George Bull,
addressing shareholders for the last time before his retirement in March 2004,
will say:

'When I became Chairman in 1998 it was apparent that Sainsbury's was losing its
way.  It had lost market leadership some years before, customer numbers were
declining and Group profits were falling.  Having only just arrived on the scene
I had the difficult task of announcing two profit warnings in 18 months.  The
infrastructure was antiquated following years of under-investment and the market
place was changing rapidly and becoming increasingly competitive.

'We recognised that Sainsbury's recovery could not be achieved overnight.  We
set about making fundamental changes to bring us in line with the industry.  We
agreed an ambitious and, of necessity, capital intensive recovery programme to
rebuild our supply chain, our IT infrastructure and radically improve our store
portfolio and our product range.  We are currently some two thirds of the way
through the programme and we are achieving traction.  There is still much to be
driven through to a successful conclusion but progress is being made and the
Board is confident that the benefits from the programme will increase in pace
during the next 18 months.

'Considering the intensity of the business transformation programme, the results
that Peter and the management team have achieved already have been highly
commendable.   Customer numbers are increasing and we have reclaimed our
position as 'First for Food'.  There are inevitably concerns that the full
benefits of the transformation programme are not yet evident.   I believe that
these concerns should be seen within the context of the last financial year when
we delivered double digit growth of 10.8% in underlying group operating profits.
This is our second consecutive year of double digit profit growth and, in
addition, we delivered a Total Shareholder Return of 17% which has outperformed
the FTSE100 by 68% from March 2000 to 21 July 2003.

'I am pleased to report that as a consequence of the changes we are implementing
Sainsbury's is in a fundamentally much stronger position than it was five years
ago.'

Commenting on performance during the first quarter, Sir Peter Davis, group chief
executive, said:

'We have reported like-for-like sales growth in the first quarter of 0.3%(a) for
Sainsbury's Supermarkets against strong comparatives from last year when we
benefited from the Golden Jubilee weekend celebrations and our sponsorship of
the England team in the World Cup and as a result reported a sharp increase in
market share.

'As suggested previously, we have aligned our reporting with the rest of the
industry in only quoting like-for-like sales growth including petrol.  Excluding
petrol like-for-like sales (adjusted for Easter) were slightly negative, but an
improvement over quarter four.

'I am not satisfied by our sales performance during the last two quarters.
There is no doubt that while implementing significant change in-store and within
the supply chain there has been some disruption to the execution of our customer
offer.  We are focussing on delivering overall value for money to our customers
through a combination of Quality, Innovation, Choice and Service, delivered at
competitive prices and will continue to retain this focus throughout our
transformation programme.   Recent improvements in-store, particularly in
service and in fresh foods, have been received positively by customers and early
evidence of this on our sales performance is encouraging.  We are looking
forward to continuing our progress in service and 'First for Fresh'.   We are
also excited about the re-launch of our new non food ranges, which will start in
September.

'The next twelve months are most important in the delivery of our change
programme, when the first two years of groundwork and capital investment really
take hold.   It is the Board's top priority to ensure that this programme is
fully completed.   We will then have a leaner, fitter business in better shape
to compete in the UK's dynamic food retailing sector.

'Shaw's in the US reported total sales growth of 1.1%(b) and like-for-like
growth of 0.8%(b).   Shaw's continues to perform well against its US peers,
although the spring weather in New England has been unusually cold and rainy
which has adversely impacted sales in seasonal categories and seasonal
locations. During this period, Shaw's added more than 340,000 sq. ft of new
selling space, including opening five new stores.

'Profits for the first quarter are ahead of the same period last year.  This
year unprecedented changes are being implemented and the recovery programme
remains on track.  We are committed to delivering our cost savings target of
£250m this year and remain confident that we are making real progress across the
group.'

(a)   Easter adjusted and including petrol
(b)   Easter adjusted

For enquiries:

Investor Relations:
Roger Matthews
Lynda Ashton                          [phone]

Media:
Jan Shawe
Pip Wood                              [phone]

Notes:

 1. Sainsbury's Supermarkets' price inflation including petrol was 0.3% and there
    was deflation of 0.1% excluding petrol in the quarter.

 2. The AGM presentations will be webcast and available on our website.

To view the slides of the presentation and the webcast, go to :
www.j-sainsbury.co.uk

The slides of the presentation and the AGM Video feature - Business
Transformation in Action (Duration 4 minutes) - will be available from 11:30am
BST.   In addition, an investor video update on the work we are doing on our
supply chain, featuring a site visit and interviews with Stuart Mitchell,
Managing Director and Martin White, Supply Chain Director will be available on
the website from 11:30am BST.

The AGM presentations will be available to view via the delayed webcast from 17:
30pm BST on the day.




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