Trading Statement

Sainsbury(J) PLC
07 October 2005

7 October 2005

Pre-Close Second Quarter Trading Statement for 16 weeks to 8 October 2005

J Sainsbury plc today reports its pre-close second quarter trading statement,
comprising 15 weeks actual sales and estimated sales for the final week to 8
October 2005.

Highlights

  • Total sales for second quarter up 6.6 percent (5.4 percent excluding
    petrol)
  • Like-for-like sales for second quarter up 4.1 percent (2.8 percent
    excluding petrol)
  • Third consecutive quarter of like-for-like sales growth since recovery
    plan announced in October 2004
  • Customers benefiting from continuing improvement in product availability
    and price position
  • Steady growth in market share this year
  • Further challenges for Sainsbury's Bank in a tough market

Trading

Justin King, chief executive, said: 'Trading during the second quarter has
continued the good progress made in the first 12 weeks of the year.
Like-for-like sales (excluding petrol) of 2.8 percent reflect a good sales
performance during a challenging period for the retail sector and we have grown
our market share. Our plans for the recovery of our business are on track.

'There was 1.7 percent deflation in grocery, driven by our continued investment
in the customer offer.  Strong inflation in petrol resulted in total inflation
of 0.9 percent for the quarter.   As previously stated we will continue to
invest in both price and quality and in our store execution to improve our
customer offer. Our sales momentum supports this investment as well as the
external cost pressures which are generally being reported by retailers.

'We continue to invest in developing Sainsbury's Bank and to move to more
commission based products. Customer numbers grew by 18% and there has been
growth in assets and income.  However consumer confidence has weakened and
market conditions continue to be challenging.  We have increased the level of
provisioning for bad and doubtful debts relating to business undertaken in
previous years and as a result expect the Bank to report a small loss in the
first half of this year.

'Looking forward we expect the market to remain highly competitive for the rest
of the year but our priority remains to invest in the customer offer to maintain
market levels of sales growth.  As previously stated we believe the benefits of
the operational gearing in the business will begin to be delivered in the second
half of 2006/07.  We need to make sure that progress is sustained and consistent
across all our stores and that work we are undertaking 'behind the scenes'
delivers the improvements laid out in our plans to Make Sainsbury's Great Again.


Making Sainsbury's Great Again

'As we outlined last October, fixing the basics of our customer offer is our
priority in this first year of our recovery plan.  We are pleased that sales are
growing as a result of the work undertaken to date and independent industry
measures have reported our market share to be growing since the beginning of the
year (4).

'Encouraging current customers to complete more of their weekly shop with us
again is key to reaching our sales growth target but we also believe lapsed and
new customers will be attracted by the progress we have made. Over the last year
we have invested in thousands of price reductions and we believe we now have
industry-matching availability.  At the same time we have given similar priority
to product quality and introduced new and improved ranges. We will continue to
respond as necessary to ensure our offer remains competitive.

'An important event during the quarter has been the re-launch of our brand
supported by our Try Something New Today advertising campaign.  This marks the
next stage of our recovery plan and has also kick-started a change in the way we
work which is essential if we are to sustain our early progress. The advertising
campaign builds on Sainsbury's heritage of quality and value and the initial
customer reaction has been pleasing.

'Our brand links well with the promotion of healthy, fresh and tasty food and an
active and healthy lifestyle.   We are now delivering orders of over £17 million
of sports equipment and experiences to more than 25,000 schools as part of our '
Active Kids' programme.  The scheme was a phenomenal success with over 80% of
all UK schools participating.  As part of 'Active Kids' and our commitment to
encourage children to be more active we pledged £500,000 to the Youth Sport
Trust.  This will help provide training for teachers to lead more exercise
activities in school. We have also just signed a grass-roots programme with the
English Schools Athletics Association which we hope will go some way to helping
secure England's hopes for its youngest Olympic athletes in 2012.

'Overall we know that our customers are noticing the difference in our stores,
particularly in pricing, availability and service, but there is still much to
do. Our commitment to constantly improve the shopping experience and do the
right thing for our customers remains at the heart of all our activities.'




Notes

(1)  For guidance, the accounts for the 28 weeks to 9 October 2004 have been
     restated under IFRS.   On this basis, underlying profits for the 28 weeks 
     to 9 October 2004 were £119 million.   Details are provided on our website
     at  http://www.j-sainsbury.co.uk/files/results/q2ts05/ifrs.pdf.

(2)  The definition of underlying profits adopted is 'Profit from continuing
     operations before gain or loss on the sale of properties and businesses,
     impairment of goodwill, financing fair value movements and items that are
     material and infrequent in nature, such as costs arising from the closure,
     relocation or re-structuring of a significant operation'. As previously
     reported, we have taken an exemption under IFRS 1 to defer the 
     implementation of IAS 32 and 39 to the financial year ending 25 March 2006.
     The figures presented for the 28 weeks to 9 October 2004, have not, 
     therefore, been adjusted to reflect IAS 32 and 39.  Details of the IAS 32 
     and 39 adjustments will be provided when the interim results for 28 weeks 
     to 8 October 2005 are reported.

(3)  Interims results for the 28 weeks to 8 October 2005 will be reported,
     under IFRS, on 16 November 2005.

(4)  As measured by TNS on a 12 weekly basis compared with the previous year
     since January 2005

(5)  Sales growth is detailed below:

     2005/06                                     Q1          Q2          H1

     Sales growth including petrol (%)
     Total                                       5.7         6.6         6.2
     Lfl                                         1.9         4.1         3.1

     Sales growth excluding petrol (%)
     Total                                       5.3         5.4         5.3
     Lfl                                         1.3         2.8         2.1

(6)  We will be holding a conference call for analysts and investors at 9:00
     (BST). To listen to the audio webcast: please visit www.j-sainsbury.co.uk 
     from 8:30 BST and follow the on-screen instructions.  The archive of this 
     event will be available from 12:00 BST on the day in the form of a delayed
     webcast.


Enquiries:

Investor Relations                                    Media

Lynda Ashton                                          Pip Wood
[phone]                                  [phone]



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