Trading Statement

Sainsbury(J) PLC
11 October 2006


11 October 2006

Second Quarter Trading Statement for 16 weeks to 7 October 2006

Highlights

•   Total sales for quarter two up 7.6 percent (8.0 percent excluding petrol)
•   Like-for-like sales for quarter two up 6.5 percent (6.6 percent excluding 
    petrol)
•   Total sales for first half up 7.8 percent (7.4 percent excluding petrol) (2)
•   Like-for-like sales for first half up 6.8 percent (6.2 percent excluding 
    petrol) (2)
•   Recovery remains on track

Justin King, chief executive, said: 'We have continued our good sales
performance during the second quarter of the year and have benefited from spells
of good weather and the focus this places on fresh and healthy food.
Like-for-like sales, excluding petrol, were up 6.6 percent and we have again
grown sales ahead of the market (3).  We have now reported like-for-like sales
growth for seven consecutive quarters. In September our 'Try Something New
Today' branding passed its first anniversary. This is strengthening our brand's
heritage and focus on fresh, healthy and tasty food.  We have continued to
develop and improve our product ranges and customers have responded
overwhelmingly to our 'Try' ideas, trying a range of new and exciting products.

'During the quarter we relaunched our premium range 'Taste the Difference'
(TTD), introducing 250 new products bringing the total range to 1,100 lines. The
range has strict brand guidelines such as no artificial colours, flavours or
hydrogenated fats and uses only free-range eggs and UK sourced meat.  Our
multiple traffic light nutritional label, the Wheel of Health, now appears on
TTD products and is being introduced onto our 'Basic' products at the beginning
of next year. This will continue to help customers make informed decisions in
achieving a balanced diet throughout our product range.

'As has been widely reported, this quarter has seen some significant pressure in
the market driven by increases in the cost of energy, commodities and fresh
produce. Our grocery inflation for the quarter was significantly lower than the
overall market at 1.0 percent and therefore our relative price position
continued to improve during the period.  For the first half, prices were, in
total, at the same level as the first half last year.   Our good sales
performance continues to enable us to invest in our offer as we are committed to
improving our competitive position.

'We are now delivering activity equipment as part of our 2006 Active Kids
programme. Over the past two years we will have donated £34 million of sports
equipment, kit and coaching benefiting 26,000 primary, secondary and special
needs schools, as well as nurseries.

'We have continued to develop our store estate.  In the first half we have
extended five, downsized one and refurbished 32 supermarkets and opened seven
new stores, including the four acquired from Somerfield, which opened last week.
Five additional supermarkets also acquired from Somerfield will open for trading
before Christmas.  We introduced our complementary non-food range into 31
supermarkets following successful trials last financial year. We opened ten
convenience stores and refurbished and converted a further 37.

'Placing our priority on food, we believe Sainsbury's offers customers a
different proposition to that of our major competitors. Our commitment to
trading as part of the local community and alongside smaller traders was evident
in the welcome we received when we opened our new store in Upper Norwood in
August.  This approach was also fundamental to winning planning permission for a
35,000 sq foot food-focused store in Urmston, Manchester.

'As previously announced, we will experience a significant step up in our energy
costs of around £55 million in the second half.  We also face much tougher sales
growth comparatives as we come up against the strong trading performance of over
five percent like-for-like growth achieved in the second half of 2005/06. We
believe the market will remain highly competitive but our performance in the
first half has given us good momentum as we enter the important Christmas
trading period.'

Enquiries:

Investor Relations                                          Media
Lynda Ashton                                                Pip Wood
[phone]                                        [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)  Easter adjusted.
(3)  As measured by TNS on a 12 weekly basis compared with the previous year.
(4)  Sales growth is detailed below:

2006/07                                           Q1          Q2          H1

Sales growth including petrol (%)
Total                                            8.1         7.6         7.8
Lfl                                              7.1         6.5         6.8

Sales growth excluding petrol (%)
Total                                            6.7         8.0         7.4
Lfl                                              5.7         6.6         6.2

(5)  Sainsbury's will announce its Interim results for the 28 weeks to 7 October 
     2006 on 15 November 2006.

(6)  A conference call will take place at 8.45 BST.  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 16 October 2006.



                      This information is provided by RNS
            The company news service from the London Stock Exchange