Promotional Activity

Sainsbury(J) PLC
24 September 2001


                                                       24th September 2001



Sainsbury's announces £100 million of price cuts

Sir Peter Davis, group chief executive, said, 'Today we announce another £100
million of price cuts which will bring the total invested since January to 
£250 million with cuts on over 5,000 lines.

'Since I rejoined Sainsbury's we have been refocusing our trading platform
back to a combination of quality, service and value. We have made great
progress with our quality campaign launched in summer 2000 and are making real
impact with our 'delivering great service' programme launched this Spring.

'During the year we have maintained a competitive pricing position with
significant investment in price cuts and extra promotions to give our
customers even better all-round value.

'It was always our intention to re-emphasise the competitive part of our value
strategy this Autumn. A central feature is a TV campaign, which we will launch
on Wednesday featuring Jamie Oliver highlighting the strength of our
promotions and special offers.

'In July I said that the unusually high level of consumer spending in the
industry was not likely to be sustained. We had planned and budgeted for a
value campaign in the important lead up to Christmas. Although our sales this
Summer have been encouraging, driven by the strength of our quality and
service, it seems even more appropriate and relevant to re-emphasise the price
and promotional part of our offer at this time.'

                                     Ends





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