Tops Holding Corporation, the parent of Tops Markets, has said cost-cutting was behind a jump in the US retailer’s third-quarter profits.

For the three-month period ending 8 October, Tops posted an operating income of US$20.7m, up from US$6.4m in the same period in 2010. Net income was US$6.4m, compared to a loss of US$7.5m in the same-year period, although last year’s third-quarter was hit by the January 2010 purchase of local rival Penn Traffic for US$85m.

Net sales rose from US$519.8m last year to US$538.6m this year, while inside sales were up 1.5% to US$491m. Same-store sales rose by 2.1%.

The quarter included a US$2.4m reduction in wage and benefit expenses made during the first half of 2011 and a US$1.6m cut in IT resources, the company said.

Frank Curci, Tops’ president and CEO, said: “Our strategy to provide our customers with a wide variety of choices and great savings opportunities, combined with the successful integration of our Penn Traffic acquisition and our focus on operating efficiencies, drove our solid sales growth and a dramatic increase in operating income in the quarter.”

The nine-month results showed net sales rose from US$1.7bn to US$1.8bn. Operating income was US$53.2m, up from US$8.9m last year, while net income was US$4.6m, compared to a US$13.1m loss in 2010.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Tops Markets has 125 corporate and five franchise locations in New York and Pennsylvania.