Trading Statement

Tesco PLC
25 November 2005


                                   TESCO PLC

                        THIRD QUARTER TRADING STATEMENT

                        STRONG SALES IN A SLOWER MARKET


Group sales increased by 13.9% during the third quarter, driven by growth from
all four parts of our strategy. The core UK business has delivered another
strong performance against tougher comparatives; in non-food, sales and market
share have increased; our international operations have made good progress and
our retailing services businesses have continued to attract new customers.

UK sales grew by 11.6% in the 14 weeks to 19 November 2005, with like-for-like
growth of 7.9% and 3.7% from net new stores. Like-for-like sales growth in the
quarter, excluding petrol, was 5.5%. Inflation overall was 0.5% but excluding
petrol, our stores saw deflation of 1.6% as we invested in lowering prices for
customers. Non-food sales continued to see double-digit sales growth in the
period.

International sales in the third quarter increased by 23.3% at actual exchange
rates and by 16.0% at constant rates. We are on track to open almost 150 stores
with a total of nearly 3.5 million square feet of sales area in International
during the second half this year, representing our largest ever opening
programme overseas. We have opened 25 stores in eight countries in the last four
weeks alone, including our first store in Guangzhou, southern China.

Our next trading update will be on 17 January 2006 and will cover the Christmas
and New Year period.


Contacts:

Investor Relations:     Steve Webb              01992 644 800
Press:                  Jonathan Church         01992 644 645
                        Angus Maitland          020 7379 5151





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