Trading Statement

Sainsbury(J) PLC
26 March 2004


26 March 2004


Fourth Quarter Pre-close Trading Statement for 12 weeks to 27 March 2004

J Sainsbury plc today issued its fourth quarter pre-close trading statement;
comprising 11 weeks actual sales to 20 March and 1 week estimated sales to 27
March 2004.



Sainsbury's Supermarkets (UK)

•         Total sales for year up 1.4%; for quarter four up 0.8% (1)

•         Like-for-like sales for year down 0.2%; for quarter four down 0.9% (1)

•         Delivered targeted cost savings of £250 million this year,
          cumulatively £710 million

•         Achieved supply chain target of 60% volume through new network

•         Sainsbury's to You to break-even by year end

•         Business Transformation Programme to complete this summer

•         Negotiating to buy 20 stores from three other retailers





Shaw's Supermarkets (US)

•         Total sales for year up 3.7%; for quarter four up 5.2% (2)

•         Like-for-like sales for year up 0.4%; for quarter four down 1.1%  (2)



Sale of Shaw's to Albertson's

•         Sale for US$ 2,475 million (£1,366 million)

•         Capital return of 35p per share (£680 million)





In the UK, sales in quarter four were affected by the resumption of the Business
Transformation Programme.  This programme will be substantially complete by the
summer and the supply chain target of 60% of the volume being delivered through
the new network was achieved on schedule during March and is expected to reach
full capacity of 70% by the autumn.  The business will also be well placed to
maximise the benefits of its investment in its new IT platform.  There was a
significant increase in price competition as the food retail market place
reacted in anticipation of Morrisons' acquisition of Safeway.   Sainsbury's
continued to match competitor price movements in order to maintain its
competitive position thereby impacting margins.  Overall, underlying profits (3)
for the current year to 27 March 2004 are expected to be slightly lower than
last year's results of £695m (3).  In these circumstances, the Board expects to
maintain this year's final dividend.



The changes in the market place prompted by the consolidation into four major
players also presents opportunities to realign the store portfolio to the
strengths of the Sainsbury's brand.  The company is   currently negotiating to
purchase 20 stores from three other retailers and has sold two large stores
during the year, which no longer fitted its business model.  There will be
further opportunities to improve the portfolio and strengthen its market
position.  Its convenience store format, comprising 136 stores following the
acquisition of Bell's last month, is performing well with plenty of opportunity
for further growth.



The home delivery service - Sainsbury's to You - continued to grow and will
break-even by the year end.   Following investment in stores and systems it is
now in a position to service London home delivery customers through selected
stores and will be closing the picking centre at Park Royal, West London.



Non-food sales are continuing to show encouraging early sales in the 94 stores
that stock the full range and the new season's ranges for spring/summer are now
going into stores.



In the US, Shaw's continues to perform. It has maintained its market share
despite a soft market affecting sales in the quarter.  The Ames integration
continues to go well and the store development programme is delivering results
and remains on track.



Looking forward, the increased competitiveness in the market following the
industry consolidation is expected to continue and creates a more uncertain UK
market than has been seen for some years.   In view of the competitive position
and Sainsbury's intention to trade the business harder there is likely to be a
further impact on underlying profits (3) in the financial year 2004/5.



Peter Davis, group chief executive said:  'It's been a tough year for
Sainsbury's but we have made real progress both in the Business Transformation
Plan and in delivering cost savings.  We have previously indicated that when our
modernisation programme is behind us we will be in a position to invest more in
price and quality in order to drive sales growth.  We will also begin to get the
financial benefits of a modernised supply chain and new IT platforms.  We are
looking forward to Justin King joining us as the new group chief executive next
week. '



Sainsbury's also announced today that it has agreed to sell Shaw's (5) to
Albertson's Inc for US$2,475 million (£1,366 million).  Upon completion,
Sainsbury's will receive cash proceeds of US$2,107 million (£1,163 million) and
Albertson's will assume US$368 million (£203 million) of store leases currently
capitalised on Sainsbury's balance sheet.  The sale is expected to complete by
early May 2004 and it is intended to return 35p per share to shareholders
representing approximately £680 million.   Shaw's has grown to be a leading
player in the New England area and is the second largest food retailer with 202
stores.   The Board believes this is an excellent transaction delivering value
for shareholders and has taken into account the increasingly competitive
environment in the US grocery market.  It believes Shaw's best interests are
served being part of a larger US retailer and that considerable on-going
investment would be required to maintain its strong market position in the
future.



The preliminary results will be announced on 19 May 2004.



Notes

(1)   Including petrol and adjusted for Easter

(2)   Adjusted for Easter

(3)   Underlying profit is before exceptional items and amortisation of goodwill

(4)   Price inflation including petrol was 0.4% in the quarter

(5)   Full details of the sale of Johnson is contained in a separate
      announcement issued today







There will be two conference calls today for analysts and investors with Peter
Davis and Roger Matthews, the details are:



To help ensure the conference begins in a timely manner, please dial in 5 to 10
minutes prior to the scheduled start time.

09:15 (GMT):  telephone [phone]

14:00 (GMT):  telephone [phone] (UK) or [phone] (US)



There will be a replay of both calls, which will be available until Friday, 2
April 2004.  Please email Kally Wilson ([e-mail]) for
details.







Enquiries:

Investor relations                                Media
[phone]                              [phone]
Roger Matthews                                    Pip Wood
Lynda Ashton








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