Tesco is expected to announce a one per cent drop in like-for-like sales this week.
Broker Panmure Gordon forecast the one per cent slip, for the 13 weeks to May 25, will also include a noticeable decline in food sales.
The UK's biggest supermarket recently posted its first fall in annual profits in nearly 20 years, down 51 per cent to £1.96 billion, including a £1.2bn hit from its failed foray into the US market with the Fresh & Easy brand.
Philip Dorgan of Panmure Gordon believes that increased price-match competition from rivals including Sainsbury's and Waitrose has made it clear that Tesco has 'not been one of the recent winners' in UK retail.
However, Dorgan does expect the retailer to recover from its recent setbacks. He concluded: 'Tesco is on the right track and we expect UK recovery to slowly emerge in 2014.'
