Tesco has revealed more about its strategy in London, where it is closely tailoring its stores to the needs of different communities.

The retail giant has refreshed 100 of its nearly 500 stores in the capital, as it looks to build on demographic and Clubcard data to better understand what Londoners want.

“A key part of our strategy in London is tailoring the customer offer to the local tastes, traditions, affluence and ethnicity, and so on,” said Tesco London managing director Andrew Yaxley in a blog post today. “With people moving around so much, the customer profile of a single store can significantly change from morning to midday to night. This presents Tesco with a challenge, but also a significant opportunity.”

In an accompanying video (above), Yaxley explained that the company views its London stores in terms of “on-the-move” outlets and “neighbourhood” shops. “By segmenting our business between ‘on-the-move’ and ‘neighbourhood’, it’s allowed us to really crystallise the ranges and space we give the customer propositions in store,” Yaxley said.

Taking into account ethnic variations in each London neighbourhood, Yaxley pointed to the example of a Tesco Metro that had recently installed a halal counter: “We did it because that’s what customers said they wanted. You walk down the local high street and it’s full of halal butchers.”

Tesco is under pressure for its refreshed UK stores to deliver – all eyes are on its third-quarter results, which will be announced on 4 December.

See this week’s issue of The Grocer for a behind-the-scenes look at Tesco’s dark store in Erith, Kent.