1st Quarter Trading Statement

Sainsbury(J) PLC
26 July 2000


J Sainsbury plc - First Quarter Trading Statement


Group sales up 9.2% 
Sainsbury's Supermarkets sales up 5.5% - like-for-like sales up 3.1%
Homebase sales up 14.7% - like-for-like sales up 12.3%
Shaw's sales up 28% - like-for-like sales up 1.6%

Note:  All figures include the benefit from the presence of a full Easter
trading period.

Sir Peter Davis, Group Chief Executive said:-

'I am very encouraged by the increase in Group sales of 9.2% and the
like-for-like growth in Sainsbury's Supermarkets of 3.1%.  Also, industry
figures from the Institute of Grocery Distribution show us to be catching up
with our major competitors in the first quarter.

'Additionally, in the last month we have launched a major quality campaign in
store whilst maintaining strong price competitiveness.  In other words our
plan is to go back to where our customers want us to be - offering quality
with good service and offering strong value for money.

'Indeed, we have listened to our customers and taken steps to clean up the
stores, reduce the clutter and the number of displays.  We are also removing
inappropriate special non-food purchases from food departments to improve the
shopping experience.  Our determination to stress our passion for food is
demonstrated by the new Jamie Oliver advertising campaign, which clearly
appeals to customers across the board.

'We are also accelerating our e-commerce programmes in both Sainsbury's
Supermarkets and Homebase as well as bringing forward investment in stores,
systems and distribution.

'I am happy that we are making progress in this highly competitive market
place.  We will present, as promised, more detailed plans for Sainsbury's
Supermarkets and e-commerce at an analyst meeting in early October.'

Group sales

Sainsbury's Group sales, excluding Sainsbury's Bank and property development,
increased by 9.2% in the 12 weeks to 24June 2000.  This reflects an improved
sales performance in Sainsbury's Supermarkets coupled with continuing good
sales growth in Homebase and Shaw's.  These results also benefit from the
presence of a full Easter trading period this year which was not present in
the comparative quarter last year.

Sainsbury's Supermarkets

Total sales in Sainsbury's Supermarkets increased by 5.5% in the first quarter
including like-for-like sales growth of 3.1%.  Excluding petrol, like-for-like
sales growth was 1.6% and with food deflation increasing in the quarter to
2.5%, like-for-like sales volume growth was 4.1%.  Overall, deflation was 0.6%
in the first quarter, supported by petrol price inflation.  Adjusting for the
benefit of a full Easter trading period this year, like-for-like sales growth
was 2.2% and excluding the contribution from petrol was 0.8%.

This is an encouraging performance, with our customers responding positively
to our deeper, more focused promotional activity, but it is against weaker
comparatives and we are still at the early stages of improving store
standards, levels of service and availability.
  
Homebase

Homebase generated total sales growth of 14.7%.  Like-for-like sales growth
was 12.3%, and adjusting for the absence of Easter in the comparative period
was 6.4%.  Homebase is now facing tougher comparatives (Q1 last year
like-for-like 12.1%) having passed the anniversary of the launch of the value
campaign but in spite of this generated strong growth and an increase in
like-for-like market share.

Shaw's

Total sales in Shaw's increased by 28.0% in the first quarter benefiting from
the Star Markets acquisition.  Like-for-like sales growth of 1.6% was lower
than in recent quarters and lower than the 2.2% reported in the first quarter
last year which benefited from strong promotional activity with the start of
the double coupon campaign.  Shaw's maintained its market share in the first
quarter in a market that was affected by unseasonably cool and wet weather in
the region.



                        Sainsbury's  Sainsbury's  Homebase** Shaw's*** JS
                       Supermarkets* Supermarkets*                     Group 
                                     (ex petrol)
                            Q1            Q1         Q1        Q1      Q1
Total sales growth %       5.5           3.7       14.7      28.0     9.2
Less:  
net new space added %     -2.4          -2.1       -2.4     -26.4    -5.4
Like-for-like sales 
growth %                   3.1           1.6       12.3       1.6     3.8
Easter adjustment %       -0.9          -0.8       -5.9       n/a    -1.3
Like-for-like sales 
growth (adj) %             2.2           0.8        6.4       1.6     2.5


*   Excluding pharmacy sales.
**  Homebase total sales growth for Q1 excluding Hampden is 11.3%.
*** Excluding sales taxes.  Shaw's total sales growth for Q1 excluding Star
Markets is -0.2% due primarily to the FTC divestiture ruling as a result of  
the Star acquisition.


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