Co-op Group in swoop for Nisa chain

L Firm steps into gap left by suitor Sainsbury’s withdrawal

the door on other potential bidders, with Hartley adding: “As you are all aware, our business and the convenience sector continue to evolve at pace and the board of Nisa will continue to review serious queries and offers which emerge.”

One analyst commented: “Co-op seems to have struck while the iron is hot.”

Nisa recently completed a £120m refinancing, and has won some new contract wins recently as a turnaround plan under chief executive Nick Read begins to show results.

A takeover of Nisa would be the latest step in a wave of consolidation within the food market. Sainsbury’s took over Argos-owning Home Retail Group a year ago, with the catalogue showroom household goods retailer buttressing the parent’s trading performance since then.

Alongside Tesco’s potential merger with Booker, Amazon has entered the food sector with the acquisition of Whole Foods, and Morrisons has restored the Safeway brand on some products.

Meanwhile, Aldi and Lidl continue to sharpen price competition and put profit margins under pressure in the sector, with the German discounters currently having an aggregate market share of a bit more than 10 per cent. Coop has 6 per cent.