Nisa’s sales rose over its fourth quarter as the stores it supplies swelled by more than 1,000 thanks to the collapse of Palmer & Harvey.

Sales grew 26.1% to £377m over the 13 weeks to April 1 but like-for-likes fell 1.1%, although they grew 0.5% in the latter six weeks of the period.

The business added 1,039 stores to its supplier network, all of which were formerly supplied by Palmer & Harvey, which entered administration in November last year.

Its core business, which consists of Nisa fascia convenience stores, grew by 76.

Overall, total numbers stood at 4,797, up 38.4% from 3,466. Total store exits stood at 337, with 264 of those due to Nisa losing the contract to supply McColl’s stores to Morrisons.

The business said that EBITDA growth was in line with expectations.

Nisa is currently awaiting the CMA’s decision on its prospective acquisition by the Co-op. The deal is the latest instance of consolidation in the convenience market following Tesco’s takeover of Booker.

Nisa Retail interim chief executive Arnu Misra said: “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.”