Trading Statement

Tesco PLC
25 November 2004


                                   TESCO PLC

                        THIRD QUARTER TRADING STATEMENT

                             STRONG GROWTH CONTINUES

Group sales increased by 12.2% during the third quarter, driven by growth from
all four parts of our strategy. The core UK business has delivered another
strong performance, sales and market share in non-food have increased, our
international operations have continued to make good progress and our retailing
services businesses have grown fast.

UK sales grew by 12.3% in the 14 weeks to 20 November 2004, with like-for-like
growth of 9.8% and 2.5% from net new stores. Petrol volumes continued to grow
exceptionally strongly during the third quarter, helped by our efforts to keep
fuel prices down during a period of rising oil prices. Like-for-like sales
growth in the quarter, excluding petrol, was 7.5%. Inflation overall was zero,
but excluding petrol, our stores saw deflation for the second successive quarter
as we invested further in lowering prices for customers.

International sales grew by 18.2% at constant exchange rates and by 11.9% at
actual rates in the third quarter. We passed the anniversary of our acquisition
of C-Two Network in Japan in July and excluding Japan, international sales
growth in the quarter was broadly similar to the first half. We expect the
contribution of new space to sales growth to strengthen in the final quarter due
to the phasing of new store openings. 1.4 million square feet of new selling
area, representing almost 50% of the total space planned to open outside the UK
during this financial year, will begin trading in the fourth quarter.

Contacts:

Investor Relations:  Steve Webb              01992 644800

Press:               Jonathan Church         01992 644645
                     Angus Maitland          020 7379 5151




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