Convenience retail and funerals group the Co-operative has posted a surge in profits after the coronavirus outbreak prompted shoppers to flock to its stores.

The Co-op has reported a sales rise of 7.6% in its first half, driven by “exceptional food and wholesale performances”, which also saw group underlying operating profit double to £121m.

Costs also rose steeply as the retailer adopted measures to trade through the pandemic and the retailer cautioned of a “challenging second half ahead with uncertain economic backdrop and need for further investment”.

Food sales rose 5.2% to £3.9bn “as customers shopped closer to home and ate out less frequently during lockdown”, and like for likes advanced 8.8%. The retailer also increased its market share by 0.5 percentage points to 7.1%.

The local shopping trend and range improvements enabled wholesale revenues at the Nisa business to rise 13.9% to £801m.

The coronavirus pandemic brought additional costs of £54m – such as recruitment of extra staff and purchase of PPE equipment – and over the full year are expected to total £97m.

The Co-op said it had received £33m of government support in the first half in business rates reliefs and furlough payments, but that it would not take the furlough job retention bonus.

Co-op chief executive Steve Murrells said: “We are living in unprecedented times, but the response of our Co-op has been exceptional and I’m immensely proud of my colleagues who’ve helped to feed and care for the nation during this difficult period. At a time of crisis, our country needs a strong and progressive Co-op and these results evidence that we are ready to deliver even more for our key stakeholders.

“Our vision of co-operating for a fairer world has taken on even greater resonance during this exceptional time, with the pandemic bringing to light inequalities and injustices which no longer feel remotely tolerable. 

“The coming months and years remain uncertain, and we know our own Co-op will not be immune to the pressures the recession brings to family budgets and to local and national economies. We will continue to invest within our core businesses to ensure that our Co-op value resonates within Co-op households and local communities.”