Retail insiders suggest Woolworths' short list will only include stores trading in locations that already support a Coles or Aldi to ensure the exit doesn't provide a launching pad for rivals in the ferociously competitive market.

Wellington has a Woolworths store and a Coles store. 

Woolworths has not revealed the locations of the stores already slated for closure, or 34 more that might be shut once their leases fall due, however, it's understood they're across a broad geographical area.

Macquarie Securities said finding new tenants for the properties could prove problematic for landlords if a supermarket with the scale of Woolworths had not been able to "achieve adequate returns and sales productivity from the location".

Sources close to Woolworths suggest the three Food For Less outlets in NSW and Queensland may be closed, particularly as they are all trading near other, branded Woolworths supermarkets.

"There would still be some of those that are branded Food For Less stores, I would think they would be top of the list of closures," the source said, "they are small and very old stores."

Woolworths chief executive Brad Banducci foreshadowed the closures on Monday as he unveiled the results of a strategic review launched in May.

The $1 billion restructure will halve the rate of new supermarket openings from 90 over the next three years to 45 and capital will be redirected to refurbishments, a move that has been broadly welcomed by listed property groups.

Listed players, including Charter Hall Retail REIT and Woolworths' property spin-off SCA Group, have significant exposure to Woolworths' stores through their portfolios.

SCA Property Group chief Anthony Mellowes said its Woolworths properties were not at risk of closure and the focus on store renewals and refurbishments along with a slower rate of new store openings was positive.

"We would take from what they are saying, that they are going to accelerate the refurbishment of stores," Mr Mellowes said. "We see it as positive, we don't have any of our stores on the store closure list."

Woolworths properties account for about 26 per cent of Charter Hall Retail's portfolio but it's understood the group is broadly positive about the restructure plan for the supermarket group.

One property industry source said the decision to put the brakes on new store openings at Woolworths would reduce the cannibalisation of existing stores.

"That will see a focus on investment dollars back into existing stores ... the general view in the sector is that it will be a good thing."

Retail analysts were broadly upbeat about Mr Banducci's restructure plan, although there were concerns the turnaround would be slower and more expensive than previously expected.

Woolworths was "nearing the bottom", according to broker UBS, but the pace of change was slower and the process was "costing more than originally planned," analyst Ben Gilbert said.

There are also concerns over how reported increases in Woolworths' sales volumes in June and July will translate in terms of comparable sales.

JPMorgan's Shaun Cousins said the key question for Woolworths' management was "when does the company return to positive like-for-like sales growth and a stabilisation of sales per square metre?"

"We are concerned that the buoyant response to positive commentary about trading may result in later disappointment if the FY16 result is weaker than expected on a like-for-like sales growth and earnings before interest and tax margin perspective," Mr Cousins said.

"Australian supermarkets' trading and turnaround progress commentary is positive but limited in its scope, we await revenue and margin detail give the significant price investment."

These is also some surprise among analysts that Woolworths is not pursuing a capital raising at a time when management can still credibly blame the former regime for the retailer's difficulties.

The business was not without funding options, one analyst said, such as the asset sales it had previously alluded to but "they don't have a balance sheet that can handle shocks".

​"If management was going to do a capital raising, you would do it now, if you go now you are effectively dismantling the [former CEO] Grant O'Brien era ... and you can raise money today and blame the other guy."