Trading Statement

Tesco PLC
18 June 2004


18 June 2004

                                   TESCO PLC
                          QUARTER 1 TRADING STATEMENT
                           GROUP SALES GROW BY 12.3%

GROUP SALES

Group sales for the twelve weeks ending 22 May 2004 increased by 12.3%. This
growth was driven by all four parts of our strategy:

   • winning in the core UK through our inclusive offer;
   • growing non food market share;
   • being innovative in retailing services; and
   • growing our international business, gaining market share.

UK BUSINESS CONTINUES TO OUTPERFORM

Total UK sales for the twelve weeks ending 22 May were up 11.1%, significantly
ahead of the industry. Like for like sales were up 7.8%, driven by strong
volumes of 7.7%. We have seen deflation in non-food, reflecting our continued
price cuts.

Non-food goes from strength to strength and in our recent clothing sale we sold
two and a half times more items than we did in the same period last year.

STRONG INTERNATIONAL PERFORMANCE

International sales were up 24% in the first quarter in local currencies. The
currency impact due to the strong pound has resulted in sterling sales being up
18%, in line with our plans. All countries have contributed to this growth
despite some continued tough trading conditions.

Chief Executive, Terry Leahy said 'I am particularly pleased that our core UK
food business has continued to grow market share and to perform very strongly in
the first quarter.'

                                    - ends -

Enquiries:-

Steve N Butler     Tesco Investor Relations          Tel:- 01992 644 800

John Church        Tesco Press Office                Tel:- 01992 646 606

Angus Maitland     Maitland Consultancy              Tel:- 0207 379 5151




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