Trading Statement

Tesco PLC
17 January 2000




                                   TESCO PLC
                               TRADING STATEMENT
                     'CUSTOMERS CONTINUE TO CHOOSE TESCO'

strong group sales growth

Group sales for the twenty-one weeks since our half-year have increased by
10.2%.  For the seven weeks ending 8th January covering Christmas and the New
Year total group sales were up 11.8%.  This growth is driven by a continued
strong core UK performance, the increasing importance of non-food and our
international expansion strategy, where we now have 38 hypermarkets trading
successfully.

outstanding uk performance

Total UK sales for the twenty-one weeks since the half-year are up 7.8%.   For
the seven weeks ending 8th January, covering Christmas and the New Year, total
UK sales were up 8.8%.  Like-for-like sales were up 5.5% driven by strong and
accelerating sales volumes of 4.5%. Overall inflation was 1% but this was
entirely driven by higher duties on petrol and tobacco.  Our core business
continues to deliver price deflation resulting from our significant price
cuts.  We are pleased to report that these sales volumes have been attained at
a time when we have maintained operating margins, in line with our plan,
through greater operating efficiencies.

strong hypermarket growth internationally

Operations in Central Europe and Asia continue to grow strongly with 14
hypermarkets opening during 1999.  In these regions sales since the half-year
have increased by 80% over last year.  An additional 28 international
hypermarkets are due to open in year 2000, further enhancing the groups
overall growth rate.

17m customers choose tesco

In the week leading up to Christmas we served over 17m customers who welcomed
our price cuts and enjoyed the cheapest Christmas for years.  This helped
Tesco continue to outperform the industry and gain further market share.

tenfold growth in e-commerce

Our customers have experienced their first significant 'e-Christmas'. We have
achieved a ten-fold sales increase over last year confirming Tesco as the
largest Internet  grocery business in the world.

This was also the first Christmas where we complemented our grocery home
shopping with an extended range of books, gifts and homeware all of which
helped drive this exceptional sales performance.

new store programmes continue at pace

Tesco has opened 39 stores worldwide in 1999 and together with our UK
extension programme we have added 2.5m sq. ft. of new selling space of which
1.6m sq. ft. is international.  Next year our opening programme gathers
further pace and we plan to open 3.8m sq. ft. of selling space including 2.8m
sq. ft. overseas.

The next trading update will be at our Annual Results presentation scheduled
for 11 April 2000.

                                       
Enquiries

Steve Butler                       Tel :     [phone]
Investor Relations

Andrew Coker                       Tel :     [phone]
Press




Notes for editors:-

Pictures of Chief Executive, Terry Leahy visiting an Internet shopping store
are being ISDN'ed to your picture desk (file name 'Tesco TPL Pics')