SYRACUSE, N.Y. — Penn Traffic Co. here said last week it had a net loss and flat sales for the 53-week fiscal year that ended Feb. 3.
The loss was $21.2 million, compared with a loss of $3.8 million for the 41-week prior year, and net income of $125.2 million for the unaudited 52-week period that ended Jan. 28, 2006. Sales of $1.3 billion were flat compared with the unaudited 52-week period that ended Jan. 28, 2006.
Same-store sales on a 52-week comparison basis dropped 1.7%.
Sales at 105 retail stores accounted for 83.4% of the total, or $798.6 million, and wholesale revenue on shipments to 119 independent supermarkets accounted for 16.6%, or $217.3 million. The company said average sales per store were approximately $9.6 million.
Fiscal 2007 was a year of “significant and fundamental change,” the company said, as a new leadership team sought to modify the chain's direction.
Among its key initiatives, the company said in a 10-K filing, were reducing shrink in all departments; optimizing product pricing and promotions; aggressively using e-auction for not-for-resale items through its Topco membership; reducing administrative staff; developing signature items in fresh categories; and increasing private-label penetration.
Penn Traffic emerged from nearly two years of operating under Chapter 11 bankruptcy protection in April 2005; however, its quarterly reporting schedule has been erratic since then because of ongoing investigations into promotional practices.
With those investigations concluded, the company said it expects to report results on a more normalized basis going forward.
Gregory J. Young, president and chief executive officer, said “Penn Traffic's historical annual-report filings are now current, and getting our public-company reporting calendar back on track is an important element of the financial and operational turnaround effort, which this management team is committed to.
“Part of getting our operational discipline and business practices to where they need to be [is] to continue to increase value for our customers and our shareholders.”
