Nisa has reported an annual decline of £8m in wholesale profit, blaming the dip on a “wider challenging market” and price investment for partnered stores.

The drop was revealed in the Co-op’s half year results. Revenue for Nisa also fell by 2.9% to £700m during the period.

Despite the fall, Nisa’s market share rose by 1% to 12.9%, while 93% of partnered stores continued to stock the Co-op own label.

Franchise revenue also rose annually during the six-month period from £28m to £32m, bolstered by five new franchise openings. Co-op said it planned to double the number of new franchise sites in the first half of next year.

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Jerome Saint-Marc, managing director for B2B and growth at Co-op, said: “As we continue to operate in tough market conditions, our B2B business area has seen an overall decline in revenue and profits. That said, we’ve seen growth in the market share of Nisa and have outperformed against broader market volume decline. Our priority has been to remain competitive and support our partners through this challenging time, by offering the products they need, at the best price, through our leading logistics network.

“Building our B2B routes to market is essential to the growth of our Co-op and being part of a portfolio business and through the strength at a Group level, we’ve been able to make intentional investments into our price and proposition for independent retailers. As we continue to develop our core wholesale proposition, we’ll secure growth alongside our independent retailer base and corporate partnerships in emerging wholesale markets, as we work towards our long-term business objectives.”

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