Third Quarter Trading Statement

Tesco PLC
30 November 1999

    
                                       
                   TESCO PLC THIRD QUARTER TRADING STATEMENT

Tesco today announces its third quarter trading statement for the 14 weeks
ending 20 November 1999.

In the third quarter of this financial year total Group sales increased by
10%.  In the UK sales were up by 7.3%, continuing to outperform the industry
and gain further market share.

UK like-for-like sales increased by 4%.  Underlying volumes accelerated from
the first half as customers welcomed our price cuts.  In our core business,
deflation was greater than in the first half, although in total the business
saw slight inflation of 0.3%, entirely driven by dutiable products -
principally petrol and tobacco.

                First Half Year  Third Quarter    Year To Date
                       %               %               %
UK Performance                                          
Like For Like         4.1             4.0             4.1
Net New Stores        3.2             3.3             3.2
Total Growth          7.3             7.3             7.3


We continue to innovate in the UK and overseas with our leading capability in
multiple store formats.  In the UK we have opened 19 new Superstores and
Compact stores this year as well as 8 further Express sites.  We also added 3
further Extras through our extension programme at Weston Favell, Newcastle and
Watford.

E-commerce is an increasingly important part of our business and we have
recently added books, gifts, products for the home and Tesco Personal Finance
to our Web offer complementing our existing Internet Grocery business.
Grocery Homeshopping is currently in 100 stores and is already profitable.  By
the year-end Tesco will be the largest Internet grocery business in the world.

The sales performance of our International business was very good.  This is a
major source of growth and this year we have opened 14 hypermarkets which has
added 1.6m sq ft in Central Europe and S.E. Asia.

The next trading update will be our Christmas and New Year statement in
January.
                                                                              
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