Response to CC Inquiry

Tesco PLC
23 January 2007


                CONSUMERS MUST COME FIRST IN COMPETITION INQUIRY

          - TESCO RESPONDS TO COMPETITION COMMISSION EMERGING THINKING


Tesco today welcomed the progress report from the Competition Commission but
expressed surprise at the lack of focus on consumers.

Responding to the first stage of the inquiry which still has a year left to
run Tesco Chief Executive, Sir Terry Leahy, said: 'We are at the early stages of
this inquiry but the Commission appears to have made some progress on dispelling
the myths surrounding our industry, particularly in their early work on
suppliers where they have found no problems with the economic viability of
manufacturers, processors or wholesalers.

'However I am concerned that consumers barely get a mention in today's report
and I urge the Commission to ensure that they are top of the list for the
remainder of the inquiry. I believe passionately that consumers have benefited
in so many ways from the intense competitive rivalry in this industry.'

On consumer choice Sir Terry added: 'All of the evidence suggests that customers
are very satisfied with the choice available to them and new stores continue to
open all the time. Customers of larger stores drive up to 20 minutes to shop and
the report shows that on this basis more than 90% of the urban population have
access to three or more larger supermarkets. When you add in smaller stores,
discounters, Marks and Spencer and internet shopping the choice is even
greater.'

Competition for land and new stores is also intense and the report shows that
Tesco's main competitors are acquiring significant holdings of land. Sir Terry
noted this comment and added: 'I believe this points to further intense
competition in the future.'

Sir Terry concluded: 'The Commission will investigate all of the issues further
and I am very confident that once they look at all of the evidence they will
find, as they have in previous years, that our industry is competitive and good
for consumers and will remain so in the future.'


ENDS


Notes For Editors:

Tesco's submission to the Competition Commission can be found at 

www.tesco.com/talkingtesco

For further information please contact the Tesco Press Office on 01992 644645.

To contact the duty press officer out of hours please telephone [phone] and
select option 2 from voicemail.


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