SYRACUSE, N.Y. — Penn Traffic Co. here said it has expanded its service contract with C&S Wholesale Grocers, Keene, N.H., to encompass grocery, bakery, deli, seafood, dairy, floral, frozen foods, ice cream, candy and store supplies. The new contract takes effect next month. Penn Traffic has contracted with C&S since March 2007 for distribution and warehousing services for general merchandise and health and beauty products, and it has been buying produce from C&S since last March. The chain said the agreement is designed to enable the retailer to focus its resources on its stores and customers. The company said it will continue to oversee outbound logistics and distribution to its retail stores and wholesale customers. The company also reported a loss of $3.4 million for the second quarter, which ended Aug. 2, compared with a loss of $4.9 million a year earlier. Sales for the quarter fell 3.5% to $306.9 million, which the company said reflected a 10-unit drop in the number of corporate-owned stores. For the half, the net loss was $15.8 million, compared with $12.3 million a year ago, while sales fell 3.6% to $594 million. In the retail food segment, which represents about 80% of sales, same-store sales fell 1.2% for the quarter, compared with a decline of 0.6% a year ago.

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