Trading Statement

Tesco PLC
15 June 2001

                                  TESCO PLC

                         QUARTER 1 TRADING STATEMENT

                           GROUP SALES GROW BY 14%


Terry Leahy, Chief Executive, comments:-

'This is an excellent performance by the whole Tesco team at home and abroad
reflecting the strength of our strategy. Our constant focus on creating value
for customers continues on Monday when we launch our next round of price
cuts.'


Outstanding Group Growth

Group sales continue to accelerate and in the first quarter increased by 14%.
This growth has been driven by excellent performances from all four elements
of our strategy: a strong core UK, increasing non-food sales, rapid
international growth and our expansion into retailing services.


Strong UK Growth - up 9.8%

Total UK sales for the twelve weeks, ending 19 May, were up 9.8%.
Like-for-like sales were up 6.7% driven by strong sales volumes of 6.4% in a
period of buoyant demand. This performance reflects our determination to
deliver the best offer for customers and when we launch our next round of
price cuts on Monday you will see over £60m of reductions on 700 products.


Strong International Performance

International sales were in-line with our plans, up 50% with all countries
contributing to this growth. In the first 12 weeks of the year we have opened
400k sq. ft. and target over 3m sq. ft. of new trading space in the year.


Record Non-Food Performance

Our strategy of offering excellent value in non-food to customers continues to
grow sales and gain market share. In the first 12 weeks of the year we have
grown our home entertainment business by 40% on a like-for-like basis and
launched electronic top up on phone cards.


The next trading update will be at our Half-Year Results presentation
scheduled for 18 September 2001.


                                   - ends -


Enquiries:-

Steve Butler - Tesco Investor Relations              Tel:- 01992 644 800
Chris Leake - Tesco Press Office                     Tel:- 01992 646 869
Angus Maitland - Maitland Consultancy                Tel:- 0207 379 5151