Analysts have predicted comparable-store sales growth in the Australian food and liquor division in a range of 0.5 per cent to minus 0.4 per cent for the final quarter compared with a year ago.
The actual result, though, is expected to be substantially higher than that.
Similarly, the Big W discount department store chain will go higher than predictions of a flat-to-negative performance in fourth-quarter, same-store sales growth.
Both Woolies and Coles will release their annual sales results this week, with Coles likely to continue outperforming its larger and more profitable rival.
Woolies will beat market expectations for its local food and liquor operations, and deflect some of the heat generated by the flat third-quarter sales result -- the worst for the company's core business in 13 years.
Credit Suisse analyst Grant Saligari said he expected the result to conceal a decline in Woolies' supermarket sales, with the overall sales figure only being dragged into positive territory by "mid-single-digit" growth in liquor sales -- the opposite to Coles, where a fall in liquor sales was expected to drag down the supermarket sales result.
UBS analyst Ben Gilbert estimated Woolworths' share of supermarket sales fell by 0.13 percentage points during the fourth quarter, while Coles gained 0.68 percentage points.
Mr Saligari said he expected both companies to report an improving trend over the course of the quarter, with market sources suggesting retail sales picked up later in the period as additional government payments related to the carbon tax and pensions began to appear in household coffers.
Investors will be watching for any comments on trading performance in June and July following the launch of Woolies' new marketing campaign, which highlights the company's locally produced and fresh food credentials with the tagline "Australia's Fresh Food People".
The campaign is a significant departure from the company's previous marketing efforts, which were largely conceived in reaction to Coles.
The most notable recent example of that was Woolworths' green fist price-reduction logo which was a clear response to Coles' "Down Down" red finger motif.
Price deflation is also expected to have continued, as both chains continue to trim shelf prices to lure customers.
The non-food businesses, including Big W and Wesfarmers' Target and Kmart businesses, are expected to have received a boost from additional government payments, which were strongly skewed to price-conscious shoppers.
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