The boss of Nisa has predicted further consolidation in the “crowded” convenience sector after the retail chain swung back into the black over Christmas.
Nick Read, who joined as chief executive of the c-store retailer in February 2015, told the Daily Telegraph that the intense price war in the grocery market and changing shopping behaviours would fuel further deal-making.
“There is a lot of congestion in the market,' said Read, a former Tesco and Aldi executive. “I think it is inevitable that there will be winners and losers, and so we will see a period of consolidation.
“It is a very crowded marketplace – there is going to be a real shakeout in terms of the players.'
Nisa, which includes over 3,000 stores within its member-owned network, posted a 6.3 per cent rise in sales to £254.3 million during the 10 weeks of trade to 3 January.
The group also posted earnings of £520,000 compared to a loss of £2.4m for the same period last year, the Telegraph reported.
Nisa, which buys and supplies goods to its members, made its first annual operating loss in its 39-year-old history last year.
But Read told the Telegraph that a clampdown on discounting during November had helped stop its historical loss-making pattern over the winter months.
Morrisons, the Bradford-based supermarket also sold-off 140 of its convenience stores in £25m deal to private equity firm Greybull, fronted by retail veteran Mike Greene.
A quarter of British consumers visit convenience shops every day, according to the Association of Convenience Stores.
Booker group announced in September 2015 that it was buying Budgens and Londis.
Morrisons had agreed the sale of its M Local stores a few weeks prior to that.
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