Trading Statement

Sainsbury(J) PLC
12 January 2006





12 January 2006





Third Quarter Trading Statement for 12 weeks to 31 December 2005



Highlights

•  Total sales growth of 5.9 per cent with like-for-like sales of 5.2 per cent 
   (excluding petrol) (4)

•  Total sales growth of 5.6 per cent with like-for-like sales up 4.8 percent 
   (including petrol) (4)

•  Fourth quarter of consecutive like-for-like sales growth

•  Strong delivery of Christmas offer; over 19 million customer transactions 
   in Christmas week

•  Continued investment in the customer offer

•  Continued growth in market share (2)



Trading

Justin King, chief executive, said: 'We are pleased with our trading performance
over the past 12 weeks which has resulted in our fourth consecutive quarter of
like-for-like sales growth.  We delivered a good offer for over 19 million
customers in Christmas week, the most we have ever served in a single week.  We
prepared for Christmas well, developed outstanding seasonal products,
strengthened promotional activity and worked hard to deliver great availability.
This was particularly important in fresh product categories, a key area for our
regular customers and essential at Christmas.   Like-for-like sales growth of
5.2 per cent (excluding petrol), reflects the progress made in this first year
of our recovery plans.  The customer experience is much improved, but we still
need to achieve this at a more acceptable cost.

'There was 1.0 per cent deflation in grocery as we continued our investment in
the customer offer.  We have made great progress in our price position over the
past 12-18 months and we will ensure our position is maintained and
strengthened.

'Improved availability and service in our main chain has also been reflected in
our online home delivery operation.  Sales were up 27.5 per cent in the quarter.
As a result we are now starting to extend the delivery area of the 97 stores
currently operating the service.

'Petrol volumes, year on year, were lower in the third quarter as promotions
only ran for four weeks compared to the whole quarter in the previous year.
This resulted in total like-for-like sales growth of 4.8 per cent.  With petrol
price increases, total inflation for the quarter was 0.5 per cent.


Making Sainsbury's Great Again

'Independent market research (2) continues to show growth in our market share.
This is primarily driven by strong like-for-like growth as we are currently
opening less new space relative to the market. Customers are responding well to
the improved Sainsbury's offer and our Try Something New Today branding has
clearly struck a chord. We have seen substantial uplifts in advertised products
and ranges as customers are engaged and inspired by cooking ideas and tips.

'In December 2005 Sainsbury's was awarded nine Silver Q Awards and the coveted
Gold Award at the 2005 Quality Food and Drink Awards. This was more than any
other retailer and the third year running that Sainsbury's has won the overall
Gold quality award.  Kicking off the New Year, we re-launched our Be Good To
Yourself range last week with an investment of around £10 million.  The range
comprises nearly 500 products, an increase of around 25 per cent, including many
'first to market' initiatives such as white, wholemeal and brown bread which has
higher fibre and lower salt (5).  The Be Good To Yourself range has been updated
from a 'diet' brand to a more holistic health brand providing customers with the
choice of low fat diet products as well as healthier options and 'plus' meals
which include products which are fortified with added ingredients such as
prebiotics, probiotics and Omega 3.

'During the third quarter we opened, extended or refurbished 25 convenience and
26 supermarket stores (6) including nine Safeway stores acquired from Morrisons.
Customers have welcomed the Sainsbury's offer as it has become available in new
areas.  Thirteen of the original 14 stores (7) acquired from Morrisons in April
2004 are now in their second year of trading under the Sainsbury's brand and are
delivering sales growth averaging over 20 per cent.

'We are continuing to reorganise our depot network to ensure the most efficient
distribution of product to stores and as previously announced, our depot at
Rotherham will close in the next few days.   Since Exel has undertaken the
management of our network in the southeast, it has also become apparent that the
distribution centre in Northfleet may not be required and, subject to
consultation, the site will close in April 2006.


Outlook

'Our sales momentum is allowing us to deliver continuing improvements in the
customer offer but we are still incurring additional costs as we embed new
processes for long-term and sustainable change to our operations.  We expect the
market to remain highly competitive during quarter four when we will also be up
against tougher comparative figures with the annualisation of sales growth under
our recovery plan. Investment in the customer offer remains at the heart of all
our activities and as previously stated, it is anticipated that the benefits of
operational gearing in the business will begin to be delivered in the second
half of 2006/07.'


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 results in forward looking statements.

(2)     As measured by TNS on a 12 week basis compared with the previous year
since January 2005.

(3)     Sales growth is detailed below:
2005/06                                       Q1           Q2           H1        Q3 (4)

Sales growth including petrol (%)
Total                                        5.7          6.6          6.2          5.6
Lfl                                          1.9          4.1          3.1          4.8
Sales growth excluding petrol (%)
Total                                        5.3          5.4          5.3          5.9
Lfl                                          1.3          2.8          2.1          5.2

(4)    The comparative numbers (Q3 2004/05) have been adjusted to reflect a
normal Saturday trading rather than a reduced New Year's Day trade.  This has
the effect of reducing this quarter's reported growth numbers and better
represents the underlying sales performance. This adjustment is consistent with
the approach employed in making the Easter adjustment in the first half of 2005/
06.

(5)    The new bread is available in white, wholemeal and brown and will replace
Sainsbury's current own-brand standard, sliced loaves. The white bread contains
double the amount of fibre of the previous line, the brown 30% more fibre and
all varieties have 15% less salt than before. The bread also contains
Hi-MaizeTM, a great source of natural dietary fibre and resistant starch, which
can be easily added to foods without changing their taste, texture or
appearance. The bread remains at 43p. As it is a standard line, the opportunity
to make a healthier choice is widely available for all customers.

(6)    Store details are:
     Stores                New       Acquisitions      Extensions      Refurbishments     Conversions       Total

Supermarkets                1                9                4                 12                            26
Convenience                 2                                                   10               13           25

(7)     The last store acquired from Morrisons in 2004/05, Team Valley, opened
in March 2005.

(8)    Sainsbury's will announce its fourth quarter trading statement on 29
March 2006.

(9)    We will be holding a conference call for analysts and investors at 9:15
(GMT). To listen to the audio webcast: please visit www.j-sainsbury.co.uk from
8:45 (GMT) 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.
To view the transcript of the conference call, go to www.j-sainsbury.co.uk on 16
January 2006.




Enquiries:

Investor relations                                Media
[phone]                              [phone]
Lynda Ashton                                      Pip Wood




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