WILLIAMSVILLE, N.Y. — The acquisition of former Grand Union stores helped Tops Markets post higher sales, but expenses associated with a dividend payment and slight declines in same-store sales and margins led to a net loss of $9.5 million for the 28-week period that ended July 13.
The privately held retailer revealed its sales figures in a debt-refinancing proposal filed with federal authorities. For the period, sales improved 6% to $1.3 billion, boosted in part by last October’s acquisition of 21 GU Markets stores from C&S Wholesale Grocers. Same-store sales decreased by 0.5% for the half year, and average weekly sales per store also decreased to $318,667 from $328,090 in the same period in 2012. Tops said sales were negatively affected by declines in pharmacy sales attributable to a shift from branded to generic drugs.
Read more: Tops Plans Rochester-Area Makeovers
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Operating income was negatively affected by $6.8 million in bonuses paid to stock option holders following the distribution of a $141.9 million dividend payment to shareholders in May, the company said. In addition, the company incurred an incremental stock-based compensation expense of $3.5 million associated with stock option re-pricing and vesting acceleration.
Tops, which operates 155 stores, is offering to exchange notes of $460 million due in 2017 and $150 million in 2018 notes.
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