Announcing its half-yearly results, the Heart of England Co-operative reported a 7.32% increase in like-for-like sales in the 21-week period to 16 June.
Operating profit is up 6.7% on the same period last year, standing at almost £2.2m.
The society says it faced a tough trading environment, with uncertainty in the market due to the slow progress in Brexit negotiations and the falling value of the pound.
However, in the food division, sales rose by 7.27% over the 21 weeks.
The society’s Meriden and Allesley stores achieved performances above budget following their recent investments – Meriden with its extension and Allesley with its refurbishment.
The funeral division also recorded an increase of 7.62% in like-for-like sales, and conducted 48 funerals more than the same period in 2017.
The society’s net assets now stand at £42.4m – an increase of 12.5% over the same period in 2017.
Chief executive Ali Kurji said: “The first half of the year has proved extremely challenging and there is little doubt that the second half of 2018 will be equally challenging due to the competition in the marketplace and the impact and the uncertainties surrounding Brexit.
“Despite the difficult economic conditions, the society remains in a very sound and strong financial position.”
He added: “The society has continued to operate with positive cash flow and the cash reserves will be utilised for profitable projects as and when required.”
