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ARE THE TESCO FIGURES A SIGN OF BETTER TIMES AHEAD?

SAM HART | CHARLES STANLEY
“We continue to believe that conditions in the UK food retail industry remain relatively benign and expect a tail wind of higher food price inflation to return later in 2010. As such, we expect Tesco to continue to deliver high single/ low double-digit growth for at least the next three years.”

RICHARD HUNTER | HARGREAVES LANSDOWN
“The Tesco juggernaut is firmly back on track. The company has enjoyed formidable growth during the festive season. Not only has the performance been underpinned by its staple products, but non-food items such as electricals and clothing and the overall international contribution have impressed investors.”

JONATHAN JACKSON | KILLIK & CO
“Management has previously said it doesn’t see deflation as a structural problem given the long-term, demographic-driven upward pressure on soft commodity prices. With that in mind, for those investors who have concerns over inflation, we believe the food retailers provide a good hedge.”