This research aims to examine the reasons behind the declining sales of Tesco supermarkets in Woolwich Area of London and provide improvement strategies to increase sales. The study evaluates the current trends of the retail industry in the UK and assesses the impacts of declining sales on the strategic decisions of Tesco. The research methodology includes qualitative research approach, descriptive research design, and thematic analysis of primary and secondary data. The study concludes that the financial crisis and growth in online retail business are the most important reasons for sales reduction in Tesco supermarkets.