Trading Statement

Sainsbury(J) PLC
19 October 2004

19 October 2004


J Sainsbury plc Second Quarter Trading Statement

Sainsbury's today issued its second quarter trading statement comprising 16
weeks sales to 9 October 2004.

Key Points

•         Total sales growth of 4.4 percent (1.5 percent excluding petrol)
•         Like for like sales growth of 1.8 percent (-1.1 percent excluding
          petrol)
•         Underlying profit before taxation (1) for the first half year expected
          to be within a range of between £125 million to £135 million, and the 
          second half year is not expected to be significantly different from 
          the first half
•         Dividend for the full year forecast to be 7.8 pence per share, a
          reduction of 50 percent

Justin King, Chief Executive said 'Total sales growth of 4.4 percent includes a
contribution from both Bells Stores and Jackson's with the like for like
increase of 1.8 percent reflecting the strong trading from petrol.   We have
continued to invest in the customer offer, particularly pricing, and as a result
in-store deflation in the quarter was 1.1 percent.  Underlying profit before tax
for the first half of 2004/05 was impacted by the margin investment and
additional costs of managing availability.'

Sainsbury's has today also announced the results of its Business Review, details
of which are outlined in a separate announcement together with the outlook for
the year.

Following the decision by the Board to adopt a sales led profit recovery,
performance for the second half of the year (2004/05) will be affected by the
further investment in the customer offer. Accordingly, underlying profit before
tax (1) for the second half is not expected to be significantly different from
the company's estimated range of £125 - £135 million for the first half.

In the absence of unforeseen circumstances, the Directors expect the dividend
for the full year to be 7.8 pence per share.  The reduction in dividend will
result in cash retained in the business of approximately £135 million.  The
medium term objective is to restore dividend cover to at least 1.5 times.

The interim results will be announced on 17 November 2004.

Notes

(1)     Underlying profit before tax is stated before exceptional items,
amortisation of goodwill and costs or charges that may arise from the completion
of the Business Review, which will be subject to our normal audit review.

(2)   Sales growth is detailed below:

2004/05                                      Q1         Q2         H1
Sales growth including petrol (%)
Total                                       2.3        4.4        3.5
Lfl                                         1.0        1.8        1.5
Lfl inflation / (deflation)                 0.5       (0.5)      (0.1)

Sales growth excluding petrol (%)
Total                                       0.8        1.5        1.3
Lfl                                        (0.6)      (1.1)      (0.9)
Lfl inflation / (deflation)                 0.2       (1.1)      (0.5)




Enquiries:

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


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