Children from Newlands Primary School, and Normanton mayoress Christine Burch and deputy mayor Elaine Blezard, were invited to the town's store on Queen Elizabeth Drive when staff dressed in Victorian-style clothes to celebrate the big day.
Bernadette Cowell, supervisor at the Normanton store, said: "We had a fabulous day. The children baked lots of cakes and we provided a big cake for our customers."
To celebrate their birthday, Sainsbury's gave individual stores the opportunity to chose a charity to support for the year.
Mrs Cowell said: "We have always unofficially collected money for the Prince of Wales Hospice in Pontefract, but this gives us the chance to do it properly.
"Everyone is touched by cancer in some way and we wanted to help the hospice as much as we can. We will now have official collection boxes and will be organising events in the future."
The first store was opened in 1869 on London's Drury Lane by John and Mary Ann Sainsbury who sold just eggs, butter and milk.
Other stores across the city also celebrated with various events, including a fancy dress day at the Ossett store which also coincided with the retirement of shop worker Joyce Worrall after 11 years.