Coles is expected to have fallen further behind rival Woolworths when the supermarket's parent Wesfarmers reports full-year results on Thursday.
Analysts predict Wesfarmers' annual results will show Coles has lost more customers, with Citi tipping Coles' like-for-like sales growth - a crucial revenue measure and indicator of market share - will have eased further in the fourth quarter.
Citi's analysts have forecast Coles like-for-like sales to have eased from 0.8 per cent in the third quarter to 0.7 per cent in the fourth quarter, while Woolworths' like-for-like sales are expected to rise 5.3 per cent in the fourth quarter, up from its 4.5 per cent growth in the third quarter.
Woolworths results are due on August 23.
"Supplier feedback consistently points to an acceleration in Woolworths' supermarket sales momentum," Citi said in a research note.
In recent months, Coles has cut the price of bread by as much as 35 per cent as it ramps up its investment in lowering prices.
It spent about $64 million on lowering prices during the first half, while Woolworths is ahead of the game, having spent more than $1 billion in 12 months on reducing prices.
Citi also expects Woolworths' earnings to rise and for Coles' earnings to contract due to its increased price investment and weaker sales growth.
However, strength from Wesfarmers' Bunnings hardware business and resource division are expected to offset Coles' earnings decline.
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