Trading Statement

Tesco PLC
15 January 2001


15 January 2001


                                  TESCO PLC

                    CHRISTMAS & NEW YEAR TRADING STATEMENT

                          GROUP SALES GROW BY 15.4%



GROUP SALES GROWTH CONTINUING TO ACCELERATE


Group sales for the seven weeks ending 6 January 2001 increased by 15.4%. This
growth was driven by excellent performances from all four elements of our
strategy: a strong core UK, increasing non-food sales, rapidly developing
international stores and our expansion into retailing services.


OUTSTANDING UK GROWTH - UP 10.5%


Total UK sales for this seven weeks, covering Christmas and the New Year, were
up 10.5%. Compared to last year this period included one extra day's trading
over the New Year. Like-for-like sales were up 6.9% driven by excellent sales
volumes of 7.3%. This performance reflects our determination to deliver the
best offer for customers as we continue to cut prices. Overall deflation was
-0.4%. We expect to see further investment in price cuts for customers in the
coming months.


STRONG INTERNATIONAL PERFORMANCE


In 2000 we opened 32 stores internationally adding over 3m sq. ft. of new
trading space. This represents an increase in International trading space of
over 45% on the previous year. International sales were up 50% over the
Christmas and New Year period as a result of our existing stores maturing and
our new store openings.


RECORD NON FOOD PERFORMANCE


Our strategy of offering excellent value in non-food to customers was a
resounding success this Christmas. We saw record sales in all areas including
14,000 DVD players and 8,000 widescreen televisions.

TESCO.COM SALES QUADRUPLE


The roll-out of Tesco.com to cover 90% of the UK population helped drive the
performance over Christmas with sales up 400% on last year. To meet this
demand Tesco.com recruited 400 new staff, allocated 10,000 additional delivery
slots and delivered 30m products.




The next trading update will be at our Final Results presentation scheduled
for 10 April 2001.


                                   - ends -




Enquiries:-


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


David Sawday - Tesco Press Office                  Tel:- 01992 644 739


Angus Maitland - Maitland Consultancy              Tel:- 0207 379 5151