Co-op is set to take over hundreds more supermarkets across the UK as part of a rescue deal aimed at saving a struggling regional retailer from potential collapse.

Members of Southern Co-op have voted overwhelmingly in favour of merging with the national Co-op Group, paving the way for almost 200 convenience stores to change hands in one of the biggest shake-ups for the sector in recent years. The proposal received backing from 97.07% of members during a Special General Meeting held on Tuesday, with 13,361 votes cast in total.

A spokesperson for Southern Co-op confirmed the result, saying members had voted in favour of transferring the society’s engagements to a subsidiary of the Co-op Group.

If the deal is approved in a second vote later this month, more than 300 businesses currently operated by Southern Co-op — including food stores, funeral homes and coffee shops, would become part of the national chain.

The combined business would generate around £11.5billion in annual sales and operate close to 2,500 stores nationwide.

Southern Co-op’s chief executive Ben Stimson previously warned that rejecting the merger could have severe consequences for the retailer, including branch closures and possible administration.

The regional co-operative has faced mounting financial pressures in recent years amid rising operating costs, falling profits and difficult trading conditions.

Mr Stimson said the merger would help secure the long-term future of the business while strengthening the wider co-operative movement.

He said: “By coming together, we can secure the co-operative future of Southern Co-op as part of a stronger combined Co-op Group, whilst creating an even stronger voice nationally and internationally to advance the co-operative cause.”

He added that joining forces with the larger group would create a more resilient organisation capable of supporting customers, staff and communities across Britain.

A second Special General Meeting will now take place on May 21, when members will be asked to vote again under legal requirements governing the transfer.

Southern Co-op said continued member participation would be crucial to finalising the deal.

A spokesperson said: “While the outcome of the first vote is encouraging, the second resolution vote is equally critical and we welcome our members’ continued support and engagement.”

The proposed merger marks a significant moment for the convenience retail sector and could reshape the presence of Co-op stores on high streets across the country.