Trading Statement

Tesco PLC
24 June 2005


                                    TESCO PLC
                        FIRST QUARTER TRADING STATEMENT
                           GROUP SALES GROW BY 14.6%


GROUP SALES

Group sales for the twelve weeks ending 21st May 2005 increased by 14.6%, driven
by all four parts of our strategy. The core UK business has shown continued
growth, our international operations have delivered a strong start to the year,
our non-food market share has improved and our retailing services have also
performed well.

CONSISTENT GROWTH IN UK BUSINESS

Total UK sales for the twelve weeks ending 21st May were up 11.3%, showing
consistent growth in a tough market. Like-for-like sales grew by 8.8%, driven by
strong volumes and a small amount of deflation. Net new stores contributed 2.5%.
Petrol volumes continue to benefit from our focus on low prices. Excluding
petrol, like-for-like sales for the quarter increased by 6.8%, after deflation
of 1.8%.

STRONG INTERNATIONAL PERFORMANCE

International sales were up 19.9% at constant exchange rates and by 27.8% at
actual rates, helped by strengthening currencies in many of our markets. As
previously reported, like-for-like sales growth (adjusted for the timing of
Easter) has improved to 5.5%, helped by a strong customer response to our price
investment in Central Europe.

Chief Executive, Terry Leahy said:

'The whole Tesco team has worked hard to deliver a solid start to a more
challenging year. Our strong sales performance has put us in a good position to
meet the demands of higher oil-related costs across the Group, rising business
rates in the UK, the initial costs of our price investment in Central Europe and
a tougher market for Tesco Personal Finance.'

Contacts:-

Investor Relations:         Steve Webb                  01992 644 800
Press:                      Jonathan Church             01992 646 606
                            Angus Maitland              020 7379 5151






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