Trading Statement

Sainsbury(J) PLC
11 January 2007


11 January 2007


Third Quarter Trading Statement for 12 weeks to 30 December 2006

Good Christmas sales performance, recovery on track

•   Total sales for quarter three up 5.8 per cent (6.8 per cent excluding fuel)
•   Like-for-like sales for quarter three up 4.2 per cent (5.0 per cent
    excluding fuel)
•   Eighth consecutive quarter of like-for-like sales growth
•   Strong delivery of Christmas offer; over 20 million customers in Christmas 
    week

Justin King, chief executive, said: 'We are pleased to have continued our good
sales performance in the third quarter of the year and achieved record sales in
the week before Christmas, serving over 20 million customers.  Like-for-like
sales, excluding fuel, were up 5.0 per cent against a strong third quarter last
year.  Achieving our eighth consecutive quarter of like-for-like sales growth
demonstrates that our recovery remains firmly on track.

'Our grocery inflation in the third quarter was 1.7 per cent, on the back of
rising energy and commodity prices evident throughout the grocery market and
cost increases in fresh produce.  We are committed to retaining the great
progress we have made in our price position and we will ensure we remain
competitive.

'During the festive period our colleagues worked hard ensuring customers
experienced great service and were able to buy the quality, fresh, healthy and
tasty products they wanted for Christmas, in store and online.  Christmas week
online sales this year increased by over 60 per cent.  Taste the Difference
(TTD), our premium own label range, experienced sales growth of around 20 per
cent, and we sold twice as many British organic and TTD turkeys compared to last
year.

'We are passionate about helping our customers shop, cook and eat in a health
conscious manner.  The Wheel of Health is now on the front of over 4,000
products and provides customers with accurate and easy to read information about
the nutritional content of the food they are choosing.  Customers have told us
that they prefer using multiple traffic light information as the colour coded
front of pack summary makes it easier for them to make quick decisions about
product nutrition when in store.  Our sales data and customer feedback shows
customers are using this information to choose food that forms a better balanced
diet.

'We were delighted to win 13 out of the 25 categories at the Quality Food Awards
(3) in November.  A further seven of our products were highly commended.  In
addition, our TTD Vintage Champagne achieved overwhelming sales growth at
Christmas after winning the Which? Magazine blind taste test (4).  These
successes once again recognise the focus we have placed on ensuring our products
are sourced with integrity and made from the highest quality ingredients.  As
part of our commitment to Fairtrade farmers and their communities, we announced
in December that we will become the first UK retailer to convert our entire
banana range to be 100% Fairtrade sourced.  Our share of the entire Fairtrade
banana market will be larger than all the other major supermarkets in the UK
combined.

'In the lead up to Christmas we opened eight new supermarkets, including five
acquired from Somerfield, completed 11 extensions and refurbished a further
seven supermarkets.  Our complementary non-food range was introduced in to an
additional 12 supermarkets.  We also opened four new convenience stores and
refurbished or converted another 14.  Customer response to these projects has
been very positive and sales growth has exceeded our initial expectations.

'Over the last 18 months there has seen a very significant increase in the
volume of product being managed through the supply chain.  As a result we will
be opening a new distribution centre in Northampton this summer and we are
implementing a number of changes to our existing centres that will increase
capacity and drive operating efficiency.

'Traditionally the next few months are particularly price competitive as
customers tighten their belts, and we expect this year to be no different.  We
are continuing with our plans to ensure we remain competitive.  We are investing
£70 million in the customer offer, reducing prices on another 1,000 products and
strengthening our promotions with 200 half price offers.  We are pleased with
our progress over Christmas and the results achieved give us good momentum to
deliver sales growth as we enter the fourth quarter.'

Enquiries:

Investor Relations                              Media
Lynda Ashton  /  Elliot Jordan                  Pip Wood
[phone]  /  4931                   [phone]

Notes

(1)      Certain statements made in this announcement are forward looking
statements.  Such statements are based on current expectations and are subject
to a number of risks and uncertainties that could cause actual results to differ
materially from any expected future events or results referred to in these
forward looking statements.

(2)     Sales growth is detailed below:

2006/07                                 Q1           Q2           H1          Q3

Sales growth including fuel (%)
Total                                   8.1         7.6          7.8         5.8
Lfl                                     7.1         6.5          6.8         4.2

Sales growth excluding fuel (%)
Total                                   6.7         8.0          7.5         6.8
Lfl                                     5.7         6.6          6.2         5.0


(3)     The Quality Food Awards, organised by Checkout and Independent Retail
News, were launched in 1979 as a way of rewarding, and encouraging, the
development of high quality food products in UK grocery.

(4)    Which? Magazine report of the blind taste test results of six
professional tasters, published 30 November 2006.

(5)    A conference call will take place at 8.45 GMT.  To listen to the audio
webcast we recommend that you register in advance. To do so please visit
www.j-sainsbury.co.uk prior to the event and follow the on-screen instructions.
To view the transcript of the conference call, go to www.j-sainsbury.co.uk on 15
January 2007.

(6)    Sainsbury's will announce its fourth quarter trading statement for the 12
weeks to 24 March 2007 on 28 March 2007, and its preliminary results for the 52
weeks ending 24 March 2007 on 16 May 2007.






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