Analysts expect Woolworths is still losing ground to rivals Coles and Aldi even as it steps up its profit draining price battle.
The latest half year results from Woolworths are not anticipated to show signs of a sales recovery when they are unveiled later this month.
Coles on the other hand is expected to boost its profit and continue to achieve like-for-like food and liquor sales growth, a key indicator of market share.
Woolworths has rolled out a $100 million price cutting plan to compete with rivals Coles and Aldi, after its like-for-like sales declined one per cent in the first quarter of the 2015/16 financial year.
Morningstar analyst Daniel Mueller said investors will look for signs of whether the aggressive price cuts are winning over shoppers.
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"I don't think the market is expecting a great result from them," he said.
IG market strategist Evan Lucas said Coles, which has about 180 less stores than Woolworths, could soon match its rival on a key financial measure.
"Woolies' quarterly updates have been showing that they continue to get monstered by Coles," he said.
"Coles has been closing the earnings per square metre gap with Woolies too, something Woolies has always had a premium on, and there is a chance Coles will draw up level with them.
"If this is the case, it will be a real negative for Woolies."
Woolworths' woes deepened in 2015 as chief executive Grant O'Brien announced he would exit once a replacement could be found, and the company posted a 12.5 per cent fall in annual profit.
Chairman Gordon Cairns has been shaking up the retailer since replacing former chairman Ralph Waters in September.
The board has been shuffled, and Mr Cairns is expected to name a new chief executive by the end of February.
The decision was made in January to either sell or wind up its ailing home improvement businesses, Masters, in order to focus on its core supermarket operation.
Mr Mueller said the market was keen for an update on Masters' prospects, and for more details on Wesfarmers' acquisition of UK DIY chain Homebase, which it intends to convert into Bunnings warehouses.
Wesfarmers will release its results on February 24, with Woolies following two days later.
