UK convenience chain Nisa Retail has reported a 17.7% year-on-year sales growth to £277.2 million in the 10 weeks to 31 December 2017.
The retailer saw fresh sales increase by 23.1% to £43.1 million and like-for-like sales rise by 1.7%.
The strong trading performance reflected an increase of 269 stores served in the period leading up to Christmas, with substantial organic growth of 106 stores and two new contract wins with Costcutter and MCColls, totalling 163 stores, according to Nisa Retail.
The retailer’s new business includes 140 new Costcutter stores that recently started trading with Nisa, as well as 23 McColls businesses. Nisa forecasts that a further 1,090 Costcutter stores are expected to start trading from January 2018.
Through its new trading businesses the retailer experienced a store growth of 249% to 269 stores, up from 77 in 2016. Meanwhile its core business grew 38% to 106 stores.
Nisa has invested in seasonal promotions to drive member sales in the festive period and saw like-for-like sales increase, demonstrating that its existing members remain loyal and are buying more year on year, according to the retailer.
“I’m pleased to report that Nisa has enjoyed good Christmas trading in the 10 weeks to 31 December,” said Arnu Misra, CEO, Nisa Retail. “We successfully invested in promotions to assist our members over the key festive trading period, resulting in positive like for likes and good organic growth in store numbers."
"The total number of stores served by Nisa was also increased by two large new contract wins," Misra added. "Nisa has delivered a strong programme to help drive sales and footfall in our members’ stores, and with the support of our members, we have built a solid foundation for 2018.”
In November, Nisa Retail members voted with over three quarters in favour of The Co-operative group’s bid to buy the business for £137.5 million.
The offer is still subject to approval from the Competition and Markets Authority, which is expected around the end of March.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.