Nisa Retail has reported strong sales growth for the 13 weeks to 1 April 2018, after it began supplying many of the stores affected by Palmer and Harvey’s collapse.

Sales for the quarter were £377m, up 26.1% on the same period last year, driven by an increase in member numbers, with 1,115 new stores in Q4 2018, and a net increase of 778. The total number of retail sites served by Nisa in the year to 1 April 2018 was up 38.4% to 4,797.

Arnu Misra, interim CEO of Nisa Retail, commented: “Following a very strong Christmas period, our sales and recruitment numbers have continued to perform strongly, giving Nisa positive momentum as we enter our new financial year.

“I am also pleased to report that during a quarter of increased stores growth, we were able to generate cash without significantly impacting service to our existing members. Nevertheless, market conditions continue to be extremely challenging, and Nisa remains focused on ensuring its members are best placed to serve their customers and communities for the long term.”

On the 13 November 2017 Nisa Retail members voted in favour of the Co-op Group’s offer to buy 100 the business for up to £137.5m. The Competition and Markets Authority is currently reviewing the proposed acquisition.