Page 1

J Sainsbury plc THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION First Quarter Trading Statement for the 16 weeks to 26 June 2021 Sales ahead of expectations ; strategy delivering market share gains • Q1 like - for - like sales up 1.6 per cent ( excl . fuel ) • Total retail sales up 1.6 per cent ( excl . fuel ) , two - year growth 10.3 per cent • Grocery sales up 0.8 per cent , two - year growth 11.3 per cent Groceries Online sales up 29 per cent , two - year growth 142 per cent • • Clothing sales up 57.6 per cent , two - year growth 15.5 per cent • General Merchandise sales down ( 1.4 ) per cent , two - year growth 5.6 per cent Reinvesting benefits of stronger sales growth and now expect underlying profit before tax of at least £ 660m¹ Summary and Outlook Sales of Grocery , General Merchandise and Clothing were all higher than our expectations throughout the quarter . Grocery sales benefited from higher in - home consumption due to continued COVID - 19 restrictions . In addition , we continued to outperform competitors and grow market share , reflecting improved value , more innovation and better customer service as we make strong progress in putting food back at the heart of Sainsbury's . General Merchandise sales were lower than last year's elevated levels but ahead of our expectations , despite global supply challenges which are likely to continue for the remainder of the year . We are using some of the profit benefit of our sales outperformance to accelerate our investment plans across the customer offer , particularly to further improve our value position . Yesterday we announced an additional £ 50 million investment in targeted price reductions focused on the centre of the plate and everyday essentials . We also have further tough comparables ahead as restrictions continue to ease and customer behaviour normalises . However , we now expect to report underlying profit before tax of at least £ 660 million in the financial year to March 2022 , with progress weighted towards the first half . 2021/22 2021/22 Total sales growth Q1 YOY Q1 YO2Y Grocery 0.8 % 11.3 % Total General Merchandise ( 1.4 % ) 5.6 % Like - for - like sales growth Like - for - like sales ( excl . fuel ) Like - for - like sales ( incl . fuel ) Q1 YOY 1.6 % 8.4 % GM ( Argos ) ( 3.7 % ) 6.7 % GM ( Sainsbury's Supermarkets ) 11.2 % 0.9 % Clothing 57.6 % 15.5 % Total Retail ( excl . fuel ) 1.6 % 10.3 % Simon Roberts , Chief Executive of J Sainsbury plc , said : " We continue to make good progress against our plan to put food back at the heart of Sainsbury's and have good momentum within the business . Our colleagues are doing a brilliant job of giving great customer service and continuing to adapt as restrictions ease and shopping habits change . Over the coming months we expect to see customer shopping patterns normalise further and we are well set up to serve them however they want to shop . " We are focused on offering our customers even better value and regularly creating new and exciting products for them to try . From today we are reducing prices by £ 50 million on everyday products from strawberries and cherries to bacon and potatoes , helping customers make the most of this summer . I'm delighted that customers are responding to the changes we are making and that we are growing our market share . “ Our recent launch of Helping Everyone Eat Better will help customers find great tasting food that is good for them and also good for the planet , an important step on our journey to reduce our impact on the environment ” .