2024 GR Tops NE ROY

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The Griffin Report of the Northeast salutes

for being named

2024 Northeast Retailer of the Year Western New York-based grocer thriving as a neighborhood staple with timeless tradition For over six decades, Tops Friendly Markets has been more than just a grocery store. It’s been a community hub, trusted neighbor and purveyor of quality products. With nearly 150 locations across New York, Pennsylvania and Vermont, Tops is woven into the fabric of the community.

From fresh produce to everyday essentials, Williamsville, New York-based Tops – The Griffin Report’s 2024 Retailer of the Year – strives to deliver on its promise of exceptional value, quality and service.

At Tops, the customer comes first. With a focus on personalized service and a wide range of quality products, the grocer has earned the trust and loyalty of its customers. By understanding the unique needs of each community, Tops strives to provide a shopping experience that exceeds expectations.

Tops has continued to build on this legacy by making significant investments in stores, technology and the communities it serves. These investments reflect the company’s forward-thinking approach and dedication to enhancing the shopping experience.

Operating in markets that include formidable competitors such as Walmart, Wegmans and dollar stores, Tops has created a unique position by leveraging national brands and promotions.

“We stand out in our markets due to having a wide variety of national brands. Our competitors’ store sizes often are two to three times larger than ours, but their assortments are heavily skewed toward store brands. This opens a door for us to capture market share by highlighting national brands,” said Ron Ferri, President of Tops.

Ron Ferri “That’s not to say that we don’t have a phenomenal private brand portfolio, because we do. We have in the range of 27 to 29 percent unit penetration in private brands, but we also have the added variety of national brands that consumers crave.”

Admittedly, having this type of go-to-market strategy can be challenging to balance.

“It’s not easy to manage that assortment complexity, but with modern tools and technology we are able to manage this expanded variety and still be incredibly efficient,” said John Persons, CEO of Northeast Grocery Inc., the ultimate parent company of Tops and Price Chopper/Market 32.

Another point of differentiation for Tops is its smaller footprint, which makes it more nimble and able to fit into locations that may make some competitors wary.

“We can easily go into markets where others can’t because the neighborhood might not support a traditional big box store,” Persons said. “Our smallest footprint is 10,000 square feet and our largest is 100,000, which gives us the flexibility to go into any market that’s out there, including many of the smaller, more rural areas other grocers might shy away from.”

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Loyalty program prowess Tops operates in a number of diverse markets, but a key reason many customers choose to shop there is its fuel rewards program. Of Tops’ store count, 58 locations sell gas, and linking the pump to in-store promotions has proven successful.

Ferri noted that fuel has been an important part of Tops’ overall business for the past 20 years.

“Yes, it offers convenience. But it’s important to note 50 percent of our primary customers actively engage in the fuel program. Very few loyalty programs of this nature have that kind of penetration,” he said.

“Our fuel rewards program helps support our overall value message. We partner with many of our vendors to put together rewards promotions, such as buy a certain number of brand items and earn extra gas points.”

In addition to the fuel program, Tops runs promotional programs throughout the year tied to its rewards card, which provides customers an additional way to get value back on their purchases.

“Above having the best deals in town every day on the brands consumers love the most, which is our core message, we provide additional value through our Bonus Plus Card programs,” said Diane Colgan, SVP of Marketing and Business Intelligence for Northeast Shared Services.

AT A GLANCE

◼ Name: Tops Friendly Markets ◼ Headquarters: Williamsville, New York ◼ Parent company: Northeast Grocery Inc. ◼ Founded: 1962 ◼ Corporate-owned stores: 147 ◼ Market: New York (129 stores), Pennsylvania (16) and Vermont (two) ◼ Store size: From 10,000 to 100,000 square feet, with average size of 43,000 square feet ◼ Employees: 14,000 ◼ Leadership team: John Persons, CEO, Northeast Grocery; Ron Ferri, president, Tops; Mike Patti, SVP, operations, Tops; Diane Colgan, SVP, marketing, Northeast Shared Services; Scott Kessler, EVP and CIO, Northeast Shared Services; and Jeff Culhane, SVP, merchandising, Northeast Shared Services

“The card provides product discounts, as well as the ability to earn Tops GasPoints. Points can be used to get discounts on fuel at our own fuel stations.”

One of Tops’ most popular programs around the winter holidays is the Christmas Bonus promotion. Customers who spend $50 or more on groceries can save $10 on $50 gift cards at various retailers such as Best Buy, Cabela’s, Kohl’s, Lowe’s and Macy’s, to name a few.

“The message this sends is that Tops is going to give you the best deals on food. We’re going to give you great discounts on your fuel, but we’re also going to help you with all your holiday gifts,” Colgan said.

Persons noted that Tops has largely excelled in tough competitive markets because of implementing promotional programs such as these. “The engagement in all of our loyalty programs is remarkable,” he said.

Growing store count Over the years, Tops has grown largely through acquisitions. According to Ferri, the company’s strategy for the next few years likely will follow the same approach.

“Most of our marketing area is experiencing limited to declining population growth and the region is overstored, so the opportunity for us to grow is by buying existing stores.

There are limited new entrants that would consider the markets we are in because they don’t see them as a growth vehicle,” Ferri said.

As Persons explained, Tops’ ability to thrive in small markets wasn’t always a strength. Prior to acquiring Penn Traffic stores in 2010, Tops didn’t have the ability – or agility – to efficiently run small-format stores.

“Penn Traffic’s strength was running smaller stores in rural areas – some in resort towns – and they ran them very John Persons efficiently,” Persons explained. “Once we acquired Penn, and many of their employees joined our company, they played a key role in helping us be more successful in running a variety of store sizes.

“Over the course of our history, we’ve had different owners and have been merged with and acquired companies. All these events allowed us to learn and grow. The experiences that Ron and I have had over the years wouldn’t be the experiences that you would typically get at a regional grocery company.”

Looking forward As at other retailers, the leadership team at Tops is exploring how retail media networks can help them grow business.

“We want to figure out how we can effectively use it – not just the monetization side of it but how we use it to engage our shoppers. We believe RMN will enable us to connect with Please see page 16

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shoppers in a much greater way,” Ferri said.

Expanding home delivery is another initiative Tops is eyeing. The retailer is currently partnered with Instacart.

“We know there is interest in home grocery delivery, but we also see an opportunity to increase delivery options of our prepared foods and take-out meals,” Ferri said. “We are exploring how we can do more in this area to unlock the opportunity and compete with restaurants that are now realizing half of their business through doorbell [services].”

‘Reflects the efforts of all our people’ “I am very excited and honored Tops is being recognized. This achievement reflects the efforts of all our people. There is a real sense of pride that you have that you know the organization got recognized for all these things over the last year that everyone's worked so hard on. It's good to be recognized for our efforts.”

– Ron Ferri, President, Tops Friendly Markets

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DECEMBER 2024 • THE GRIFFIN REPORT OF THE NORTHEAST

2024 Northeast Retailer of the Year

Multiple remodels, upgrades helping retailer reimagine in-store shopping experience With more than $40 million dedicated to the remodeling and upgrading of more than a dozen supermarkets and fuel stations across its footprint, Tops Friendly Markets has taken substantial steps to modernize its facilities and improve accessibility and convenience for its customers.

Recent remodels in key locations such as Baldwinsville, Grand Island and Williamsville, New York, as well as Erie, Pennsylvania, have transformed these stores into modern shopping environments where customers can enjoy a seamless blend of tradition and innovation.

According to company officials, these remodels are designed not just to refresh the physical spaces but to reinvigorate the overall customer experience, ensuring that every visit to Tops is enjoyable and efficient.

Tops recently celebrated the grand reopening of its 92,000-square-foot flagship store in South Lockport, New York. Representing a $4 million investment, the renovation marks the largest undertaking in the company’s ambitious five-year capital improvement plan.

takes great pride in offering its customers. The South Lockport location is offering an expanded selection of antibiotic-free meat, sustainable seafood and plant-based options, along with more than 4,800 certified organic grocery items that are fully integrated in-aisle.

The expanded bakery offers an assortment of freshly baked breads, pastries, specialty cakes and old-fashioned doughnuts, fried fresh daily, along with gluten-free items from Vin-Chet’s, a local western New York bakery.

In addition, the store features chef-prepared rolled sushi and a full-service deli that offers fully prepared dinners, graband-go meals, salads, made-to-order subs and breakfast pizza.

Staying open during construction

South Lockport store Williamsville store

Grand Island store

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Shoppers in South Lockport will find new interior and exterior paint with welcoming awnings and landscaping, energy-efficient equipment and LED lighting inside and out.

There also are new shopping carts, expanded state-of-the-art self-checkouts, renovated restrooms and an enlarged fresh perimeter with updated décor.

As is the case with many of the remodels, this location is all about perishables. The store features an expanded selection of fresh produce, complete with fresh-cut vegetables and fruit trays for quick and easy-to-serve convenience.

Shoppers also will discover a full-service seafood and meat department with certified butchers on hand, something Tops

Tops chose to keep the store, which it recently acquired from the Perna family, open during the remodel. Mike Patti, SVP of Operations for Tops, noted that approach is always challenging for management and shoppers.

“This was one of our highest volume stores, and the remodel just took it to the next level. It’s probably our biggest transformation of a remodeled store yet,” he said.

The remodel took about five Mike Patti months to complete and, according to Patti, customers were excited to watch the progress and transformation.

“Prior to every remodel, we meet with the store’s teams and we’re forthcoming about what to expect,” Patti said. “We let Please see page 20

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them know working through the remodel will be a challenge and test their leadership skills. Our store team did a fantastic job mitigating any problems or interruptions.

“We’re investing not only in refreshing the space but invigorating the overall customer experience.”

John McCaffrey, Regional VP for the East for Tops, noted that the new lighting and refrigerated equipment are more aesthetic and cost less to run.

Tops also partners with two renewable energy companies, giving it the ability to harness the power of the sun to save on energy in more than 80 stores.

“We’ve incorporated a lot of high efficiency, self-contained units that do John McCaffrey not require refrigerants to keep products cold,” he said. “Many of these new cases are from Pure Cold. They have been instrumental in helping us become more energy efficient and compliant with the upcoming change in federal laws regarding refrigerants. The new LED lighting creates a bright, clean look and is less costly to operate.”

Tops also has incorporated cases from several other manufacturers, some of which are smaller, self-contained spot cases that can be integrated where needed.

“If we ever decide to do further remodel work or expansion, these would be easy to move compared to a permanent refrigeration unit,” McCaffrey said.

He went on to describe the evolution of store equipment as “mind blowing.”

“Manufacturers continue to rework their offerings, and today’s options are so much more efficient,” he said. “The technology behind them is nothing short of amazing. I can only

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2024 Northeast Retailer of the Year Recognition ‘point of pride’ for grocer

“For me, this recognition is a point of pride – not only for the leadership team but for the 14,000 associates who work every day of the year to provide the best quality and care to our customers. This is not an easy business to run. Being honored as Retailer of the Year is joyful and certainly makes me proud of what we provide to the communities we operate in, who we are as humans to each other and in the organization.”

– Kristen Hanson, GVP, center store and pharmacy, Northeast Shared Services imagine five years down the road what the next generation of equipment will look like.”

Jim Gibson, Regional VP of store operations for the West for Tops, said the grocer incorporates the wants and needs of shoppers and store associates in every remodel.

“We have been known to make some tweaks based on feedback we receive.

Our enlarged aisle signage with descriptions on front and back is an example of something we’ve recently incorporated that our customers wanted. The expanJim Gibson sion of our fresh departments is also a result of feedback from customers.”

Expanding on this, Patti added, “We’ve been concentrating on improving and expanding the perimeter to stand out both in size and scope of offerings. If we aren’t listening to the consumer about what they want from a fresh standpoint, we’re probably not going to grow.

“At the same time, we probably listen to the associates as much as we listen to the consumer. The associates often know best because they work here every day.”

While the store was going through the remodel, there was talk of removing the self-service dessert case. However,

after hearing about its importance from the store and bakery managers, the decision was made to keep it. The same autonomy often is extended to product assortments.

“We work with fresh item management to evaluate our core mix, but each store team has the option to adjust that as they see fit and include items that are important to their particular community and neighborhood demographics,” Patti said. “This extends to prepared foods and produce assortments.”

As a regional grocer, having flexible assortments is important, noted McCaffrey.

“Our stores in the Adirondacks, where tourism plays a large role, are asking for different things than a store in Buffalo,” he said. “What works in one might not in the other. It’s important we cater to each market individually.”

Stores also are encouraged to come up with unique products.

“Some of our stores have created their own items in house.

If we think it is warranted, we will expand that item into some of our other stores,” he said.

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Embracing digital age, Tops leverages technology in order to adapt, adjust quickly From upgrading its self-checkout equipment and expanding its innovative Shop+Scan service to testing Tally the Robot in select stores, Tops Friendly Markets is leveraging technology to elevate its customer experience and operational efficiency.

Tops recently invested more than $1.5 million in technological upgrades across its stores.

“In the case of Tally, it helps us become more operationally efficient, keep our addressable out-of-stocks at the lowest level and ensure accurate pricing. It also helps us with the overall out-of-stocks because it highlights issues in our supply chain,” said Scott Kessler, EVP and Chief Information Officer, Northeast Shared Services.

Scott Kessler “For instance, if our direct store delivery vendor isn’t delivering the product in a timely manner when we need it, or we’re not properly allocating the product out of our distribution center to the right stores at the right time, the system will let us know. It creates a digital image of every store, every shelf and every product and generates data that we can share with vendors and our distribution centers.”

Ron Ferri, president of Tops, noted that Tally is still in the test phase but said the results have been impressive thus far.

“Not only do kids love to interact with it, but its findings have been remarkable,” he said. “If everything goes well, we’ll continue to roll that out at more stores. It probably isn’t something that we can put in every location, because when we get into some of the smaller footprint stores it may not make sense to have something like this.

“These are relatively small investments with high return that enable us to retrain and reskill our workforce to become much more productive and efficient. The data gives us better insights to make better decisions.”

Tops also is using artificial intelligence tools to analyze trends in customer feedback. The ability to immediately identify patterns allows the company to more rapidly address issues.

Diane Colgan, SVP of Marketing and Business Intelligence for Northeast Shared Services, noted that Tops is using shopping data from in-store and online purchases to better understand customers’ buying behavior and improve the experience.

“With this information, we can react quickly to adjust what we offer based on Diane Colgan this feedback, as well as resolve issues before they escalate,” she said.

Self-checkout advancements A prime example of Williamsville, New York-based Tops’ commitment to technology is the recent installation of Toshiba self-checkout systems across all stores. The systems streamline the checkout process, reducing wait times and allowing customers to complete their transactions independently.

Colgan pointed out that the new units are much better at recognizing product and work with mobile scan.

“Customers can move through checkout more quickly and have control of the process,” she said. “I would say about 35 to 40 percent of our shoppers use self-checkout. Initially, people with small baskets gravitated to them, but today we see full baskets as well.

“We are currently exploring queuing options to move shoppers through the lines quicker. We are always looking at what will make the shopping experience better.”

John Persons, CEO of Northeast Grocery, parent company of Tops and Price Chopper/Market 32, added that the company is always exploring ways to create a more efficient checkout process.

“We put a significant effort in during the past several years to expand the number of self-checkouts and add the latest generation of technology. On top of that, we added the ability to check out using your phone through our Shop+Scan app.”

Persons added that the adoption rate likely will pick up as shoppers become more accustomed to it.

quicker to access and provide better segmentation and personalization,” Colgan said. “We will be able to reach consumers on a regular basis with relevant information and turn that into action. It also produces a tremendous amount of share data so we can see how much customer share of wallet we are getting.”

At the same time, Tops still sees relevance in certain tools such as print advertising circulars.

“Being a strong promotional company, we rely heavily on getting that communication out and do that in a variety of print and digital ways, as we find our shoppers use both,” Colgan said. “We realize many retailers no longer offer a printed circular, but we consider it a core part of our marketing strategy and feel this is an effective way to keep our brand in front of shoppers every week.

“We build a lot of solutions, systems and analytical work around developing the best program we can. That said, we will continue to focus our efforts on growing digital because that is the best way to ensure relevant offers are sent.”

Digital marketing Tops has created its own media network, Shopper Link, through its partnership with Inmar Technologies.

“The ability for us and our vendor partners to send relevant, targeted information to consumers wherever they are consuming digital communications is a game-changer and a great return on investment for all those involved,” Colgan said. “We chose Inmar because they are the largest gateway for digital coupons and can enable them through our point-of-sale system.”

Tops also is leveraging technology from Birdzi, which takes consumer shopping data generated from loyalty cards and turns it into actionable information to influence purchasing behavior.

“It will bring information together in a way that’s easier and

‘It’s more than just a transaction here’ “Tops continues to evolve around its customer base. We focus on not just servicing busy towns but rural communities with the products they want at the right value. They know it’s more than just a transaction here. For us, we’ve really found the niche – with assortment, marketing and our loyalty program – and we just continue to exploit that.”

– Scott Kessler, EVP and Chief Information Officer, Northeast Grocery

‘We lead with our hearts a lot of times’ “Tops is ingrained in the community. It’s a company that genuinely wants to do better by every single shopper out there. To pick a company like ours is very humbling because we know we have a lot of competition.

“Even though we are a part of Northeast Grocery now, we are still a regional grocer competing against national companies with much deeper pockets. We find the ways that we can grow with our shoppers and provide value to them. We lead with our hearts a lot of times.

“When it comes to the community, a lot of things we do don’t provide an ROI, but we’d rather do the right thing to make sure we are in the marketplace for a long time. Our philanthropic efforts are focused on making sure every dollar goes back to the local community, where our customers can benefit. It’s nice to be recognized for doing good things.”

– Diane Colgan, SVP, Marketing and Business Intelligence, Northeast Shared Services

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DECEMBER 2024 • THE GRIFFIN REPORT OF THE NORTHEAST

2024 Northeast Retailer of the Year

Company committed to convenience at grocery stores, fuel stations Tops Friendly Markets may be focused on many wide-ranging strategic initiatives, but all share a commonality – they are centered around creating a seamless and easy shopping ­experience. Whether in-store or at fuel stations, Tops’ goal is to offer shoppers the best so they choose to return.

By expanding and upgrading its fuel offerings, including the addition of a new fuel station at its Liberty location in Erie, Pennsylvania, and significant enhancements at its Grand Island and Niagara Falls locations, Tops has reinforced its position as a one-stop destination for food and fuel.

Tops’ GasPoints program is one of the most popular loyalty programs the company offers.

“Everything we do centers around making a visit to Tops convenient and stress free. It is a key differentiator for us and a way of ensuring that customers can meet multiple needs in a single, efficient visit – all while saving time and money,” said John Persons, CEO of Northeast Grocery.

The focus on convenience is evident in Tops’ many recent remodels. At its South Lockport store, which held its grand reopening in early November, consumers were pleased to learn the store now includes a bank and a Starbucks Café.

“We’ve tried many ways to sell coffee, from offering our own program to partnering with other national and local coffee franchises, but none has ever worked so successfully and broadly until Starbucks,” said Ron Ferri, President of Tops.

“We were the very first in-store Starbucks to offer mobile ordering. They were unbelievably pleased with how well we’ve performed with it, and customers love it. Half of our Starbucks’ sales today at most locations are done through the mobile app right now.”

Shoppers also can buy lottery tickets at this location and pay utility bills.

As Tops continues to remodel stores, one of the areas receiving a facelift is the pharmacy.

Both the space and services have been expanded at many locations.

For example, the South Lockport store has added a private waiting area, and some of the services open to the public include complex specialty prescriptions, immunizations, the Department of Motor Vehicles’ vision test and the new COVID-19 booster for those 65 and older.

The company’s convenience stance also extends to expanding checkout options to include the time-saving Shop+Scan app, through which shoppers can use their phones to scan and bag items as they go to expedite checkout.

The company also has expanded its online ordering options with Tops grocery pickup, home delivery through Instacart and catering services.

At the store’s floral shop, shoppers can build bouquets or have in-store florists design arrangements.

Honor is result of ‘genuine caring’ “We have a lot of pride in our company. We work for a very inspiring group of leaders who truly care about the communities we serve. It is nice to be recognized for these efforts and let others see how we truly operate. It’s genuine caring.”

– Kathy Allen, Senior Manager, Community Relations, Tops

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Tops Friendly Markets continuing to set new standards for efficiency, satisfaction Tops Friendly Markets has made significant strides in optimizing its supply chain operations, setting a new standard for efficiency and customer satisfaction.

By strategically investing in innovative technology and fostering strong partnerships, it has positioned itself as a leader in the grocery industry. Key strategies driving success include technology integration, strong vendor relationships, a customer-centric approach and eco-friendly practices.

Tops recently upgraded supply chain operations to include the Prospero Routing System and Voice Pick Technology.

Company officials say this advanced routing software has boosted delivery efficiency. By optimizing routes and minimizing travel time, Tops ensures timely and reliable deliveries to its stores.

Tops’ leadership team noted that implementing voice-activated picking systems in distribution centers has improved order accuracy, reducing errors and speeding up fulfillment.

Data-driven decisions Tops utilizes several tools to boost supply chain efficiency.

With the aid of computer-assisted ordering, Tops is better able to analyze sales data and inventory levels throughout the day to make informed replenishment decisions. This approach ensures optimal stock levels are maintained, preventing both overstocking and out-of-stocks.

The company also aims to optimize its planograms, the diagrams/models that indicate the placement of retail products on shelves in order to maximize sales. Given that Tops reviews 100 or so planograms a year, it is exploring cloud-based software that will allow for greater visibility and adaptability.

Tops has created a sales feed so employees can toggle onto a

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planogram at any time and see the average sales that category has compared to total company average sales in units. They can then use the data to make decisions when doing store remodels or refreshes.

Real-time price and inventory management Advanced systems such as Tally the Robot are being tested in stores to ensure accurate pricing, prevent out-of-stocks and boost customer satisfaction and top-line sales.

“We use a tremendous amount of data analytics, including forecasting tools, to help us make educated buying decisions based on all the inputs we have. That allows us to be efficient within our inventory and overall supply chain,” said Jeff Culhane, SVP of Sales and Merchandising, Northeast Shared Services.

“We watch movement at store level very closely. The goal is not to tie up Jeff Culhane inventory dollars unnecessarily.”

He added that the company and its wholesaler, C&S Wholesaler Grocers, want to ensure inventory is relevant, and

that “we are turning it responsibly. We treat it as our own endto-end supply chain because C&S is a good partner, but it’s also good warehouse management.”

Strategic partnerships Collaborating with suppliers and wholesalers enables Tops to optimize product flow, reduce costs and enhance product quality.

By implementing cross-docking, Tops can expedite product movement and reduce inventory holding costs. This strategy is particularly beneficial for direct store delivery, specialty and slower-moving items.

“For example, UNFI has 10,000 items in their offering that we’d like to tap into, but it’s not realistic to carry all of it in our own warehouse,” Culhane said. “Cross-dock allows us to access more variety through our distributor without needing to always have it on hand. This flexibility helps us run a more efficient warehouse, frees up slots, our trucks go out fuller and it saves everyone money.

“This is an area of continued opportunity and focus for us.

We are evaluating future opportunities for cross-dock and Please see page 28

Testament to employees’ dedication “The recent recognition Tops has received is a testament to the hard work and dedication of our employees. All of us go into work each day because we love what we do. It’s an honor to be recognized for doing something you love.”

– Kristine Wydro, VP of Human Resources, Tops

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how we can get more product to our stores faster, cheaper and fresher. We already know that running it on our own trucks and through our own warehouses nine times out of 10 is the better option.”

Eco-friendly practices Tops is committed to reducing its environmental impact through initiatives such as using natural gas-powered trucks, minimizing packaging waste and promoting sustainable sourcing.

“Sustainability is at the core of who we are and plays a lead role in everything we do,” said Kristen Hanson, Group VP of Center Store and Pharmacy, Northeast Shared Services.

“We are working to drive real waste out of the system and teaming up with our trade partners to explore how we can all use less packaging, both with national brands and our own.

“Additionally, we are looking into Kristen Hanson incorporating more recycled plastic and cutting down the amount of cardboard used.”

Customer-centric approach By understanding the unique needs of its customers, Tops strives to provide a personalized shopping experience, fostering loyalty and driving growth.

“Our strong relationships with C&S and UNFI have made this all possible. Through these partnerships we have been able to put processes and practices into place to operate an efficient supply chain,” Hanson said.

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Growth, innovation through the years 1962

1970s

1991

2001

2007

◼ F ounding: Tops ◼ B rand naming: The Markets opens name “Tops” is its first modern adopted, reflecting supermarket in the company’s Niagara Falls, New commitment to York. providing the best shopping experience.

◼ E xpansion: ◼ P ennsylvania entry: Tops expands The company opens its footprint in its first store in western New York Pennsylvania, and enters the marking the Rochester market. beginning of its multi-state operation.

◼ A hold acquisition: Tops is acquired by Ahold, a major international food retailer.

◼ S trategic alliance: Tops forms an alliance with Giant Food Stores.

◼ L ocal ownership restored: Morgan Stanley Private Equity acquires Tops, returning it to local ownership.

2010

2012

2013

2021

2022

2023

◼ P enn Traffic acquisition: Tops acquires The Penn Traffic Co., significantly expanding its store count.

◼ G rand Union acquisition: Tops acquires 21 Grand Union Family Markets stores.

◼ C omplete local ownership: Six members of the executive team purchase Tops from Morgan Stanley Private Equity.

◼ M erger with Price Chopper/ Market 32: Tops merges with Price Chopper/Market 32 to form Northeast Grocery Inc.

◼ L eadership transition: Scott Grimmett, former CEO of Price Chopper, retires and Frank Curci assumes the role of CEO of NGI.

◼ E xecutive moves: John Persons is promoted to CEO of NGI when Frank Curci retires, and Ron Ferri becomes president of Tops Friendly Markets.

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2024 Northeast Retailer of the Year

Reputation for employee development, opportunity, positive work environment Tops Friendly Markets has built a reputation for its commitment to employee development and satisfaction. By fostering a positive work environment, investing in employee development and prioritizing work-life balance, Tops has positioned itself as an employer of choice.

Kristine Wydro, VP of Human Resources at Tops, said developing the workforce is a priority.

“We believe in investing in our people,” she said. “From the moment they join us, we offer a range of training programs, including our Leadership Academy and Tops School of Business.

These programs are designed to equip our employees with the skills and knowledge they need to succeed here.”

Kristine Wydro One of Tops’ initiatives is the Management on Duty program, which provides hands-on experience for those employees who may be considering a managerial role.

In addition, the company’s Assessment Center offers a simulation of a store manager’s day, helping to identify and develop future leaders.

Attracting, retaining top talent To attract and retain top talent, Tops offers competitive wages, excellent benefits and a variety of career opportunities. It has a strong focus on youth development and providing valuable work experience.

“Our thought is if we can capture people at the start of their career, keep them through high school and college, then hopefully they will be interested in a full-time position with us,”

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Wydro said.

“Thus far, this strategy has worked out well for us. If you look at the number of minors we have in the store, it’s probably 10 percent of the store’s employee population.”

Aside from training, Tops’ scholarship program offers tuition reimbursement for those in salaried positions seeking to further their education. Since 1990, Tops has awarded more than $22 million in scholarships to associates, their dependents and grandchildren.

“This investment in education demonstrates our commitment to our employees’ long-term success,” Wydro said.

Fostering a healthy work-life balance has made Tops a place associates want to work.

“In the past, we might have expected associates to be available around the clock. However, today’s workforce, especially younger generations, prioritize work-life balance and flexibility. To attract and retain top talent, we’ve adapted our approach.”

‘Award reflects everyone’s efforts’ “It is heartwarming to know that the efforts of our team – 14,000 strong – were part of helping us achieve something so wonderful. It’s amazing to be recognized. We are a company that does so much and has achieved

so much.

“The Retailer of the Year award reflects everyone’s efforts – from the cart and stock folks to the president and CEO. Being an organization with these strengths makes people want to be a part of a company that not just achieves but gives back.

“Workers are attracted to companies who have sustainability initiatives and philanthropic programs. They want to be part of that.”

–Andrew Brocato, Manager of Corporate Contributions, Tops

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“We understand that employees may have different schedules each week due to school or family commitments. We’re happy to accommodate those needs when possible.”

Tops is known for supporting the community through numerous fundraisers and partnerships with nonprofits. And over the past several years, its leadership team began reflecting inward and identifying ways to support its own associates facing challenges.

“To show our appreciation and alleviate some of the holiday stress, we began hosting employee parties and providing food and gifts for families,” Wydro said. “We implemented a program where store managers can nominate associates experiencing difficulties, whether financial, familial or otherwise.

These nominations are anonymously added to our Giving Tree, and we’ve assisted more than 100 families since the program’s inception.”

Tops’ dedication to employee growth and well-being is reflected in its long-tenured workforce. More than 10 percent of associates have been with the company 25 years or longer.

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Employee longevity is particularly evident among leadership: Northeast Grocery CEO John Persons will be recognized this year for 40 years of service, while Tops President Ron Ferri will be honored for 35 years. Wydro has been with the company 37 years.

“We have a great team. We enjoy each other’s company and often joke around,” Ferri said. “But at the end of the day, we also respect each other. When you are treated like this, you want to treat your employees the same way.”

Ferri met his wife when she was a cashier at Tops. Both of their children work for the company.

Mike Patti, SVP of Operations at Tops, said the heart of the company is its people.

“The people here don’t make us good, they make us great.

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We’re fortunate to have a dedicated and committed team with significant tenure, deeply invested in their stores, communities and fellow associates,” he said.

“This strong connection between management and store teams fosters open communication and understanding. We know our associates personally – their families and their aspirations. This personal touch has been instrumental in shaping our company’s success and market approach.”

John McCaffrey, Regional VP for the East for Tops, said he was impressed by the company’s culture when he came aboard in 2010.

“Back then, everybody worked together to lift each other and that still is true today,” he said. “We are a strong team, and that’s something special that you just can’t create overnight.”

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DECEMBER 2024 • THE GRIFFIN REPORT OF THE NORTHEAST

2024 Northeast Retailer of the Year

Honor Space pays tribute to those slain in 2022 attack at Jefferson Avenue store in Buffalo On May 14, 2022, a racially motivated shooting occurred at the Tops store on Jefferson Avenue in Buffalo, taking the lives of 10 Black men and women and wounding three others.

As a memorial to those who lost their lives, Tops dedicated an Honor Space as a place of solace and reflection for the community.

The leadership team at Tops, along with landscape experts, spent two years designing the memorial with input from the community.

Within the memorial is a sculpture called “Unity” and two semi-circles that represent light. Surrounding this space are

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10 granite bollards, one for each victim. Granite benches have been included for people to sit and reflect.

The landscaping holds significance as well. Some plants were chosen because they were cherished by the victims, while others were selected for the different emotions they represent.

The tree within the memorial is a seedling from the one that survived the 9/11 terrorist attacks. Each year, three communities are selected to receive a seedling as a gift from the 9/11 Commission.

“We wanted to honor the 10 lives that were lost and the people who were injured that day in an impactful way. The

memorial is a reflection of hope and all the good things that came out of this horrible, tragic situation – all the love, all the compassion, all the efforts that the community put forth to come together,” said John Persons, CEO of Northeast Grocery.

Visitors to the memorial may notice unique symbols on each of the 10 bollards. During one of the community planning meetings, some of the elders in the neighborhood suggested Adinkra African symbols that represent love, hope, peace and unity. Each of the families was asked to pick a symbol they believe represented their loved one.

Kristine Wydro, VP of Human Resources at Tops, noted that the memorial was also for employees, many of whom chose to stay on at the store after the shootings.

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Honor Space Plaque

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Unity Sculpture

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9/11 Memorial Tree

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DECEMBER 2024 • THE GRIFFIN REPORT OF THE NORTHEAST

2024 Northeast Retailer of the Year

Philanthropic efforts focus on fighting hunger, giving back to communities in many ways At Tops Friendly Markets, the community is at the heart of everything the company does. Through its support of numerous causes and partnerships with nonprofits, Tops seeks to make a difference in the lives of those who need it most.

Among the many causes the grocer supports are fighting food insecurity, enhancing the health and well-being of families and children and supporting veterans.

“A big part of our identity is our connection to the community. We call ourselves the hometown grocer, and we stand behind that. We don’t just write checks, we are actively involved in the needs of our community,” said John Persons, CEO of Northeast Grocery.

“We are such an integral part of the community, and that is what we do different than other retailers operating in our market. We are trying to bring the community into the store and bring us out into the community.”

One of Tops’ most impactful initiatives, Food 2 Families, has provided more than 67 million meals to those in need through

campaigns such as Savor Syracuse and Check Out Hunger. Last year alone, the company donated some 114,000 meals.

Another program, Fresh Recovery, is making a difference in reducing food waste. Now available at 130 Tops locations, the initiative rescues fresh produce and perishable items that would otherwise be discarded.

By partnering with food banks, pantries and community organizations, Tops ensures that these nutritious foods reach those who need them most. This program not only addresses hunger but aligns with Tops’ sustainability goals.

To further reduce food waste, Tops has partnered with Flashfood. This app-based program connects consumers with discounted food nearing its best-by date, allowing them to save up to 60 percent on items from departments such as produce, meat, deli, bakery and dairy.

By making affordable, quality food accessible to more people, Flashfood and its retail partners have diverted more than 50 million pounds of food from landfills and saved

‘We spend 52 weeks a year giving back’ “The thing about Tops is that we are very humble in all that we do. Yes, we run really good stores and we serve communities other operators would not go into from a store perspective. But at the same time, we work hard to make sure that we’re taking care of as many of our communities’ needs as possible through relationships with nonprofits and area food banks.

“We spend 52 weeks a year giving back to the community in a way most people don’t hear about, because we don’t do it for the publicity. We do it because it is the right thing to do as a human being living in these communities. It takes all of us to make a community strong. We appreciate that Shelby is recognizing these efforts.”

– Jeff Culhane, SVP, Sales and Merchandising, Northeast Shared Services

shoppers millions of dollars.

Market specific-assistance Given that every community’s needs differ, Tops assigns a Community Champion within each of its stores who becomes the eyes, ears and voice of the retailer.

“They keep us abreast of what’s important and relevant in their community,” said Andrew Brocato, Manager of Corporate Contributions for Tops. “Whether it’s flooding, fires or something else, it is important that we as a company are aware of these issues and the services needed in each community where we operate. Those are our customers, and we are neighbors helping neighbors.

“We are focused on eradicating hunger and giving back to our commuAndy Brocato nities in the hopes of improving the quality of life and wellness for families. Food insecurity is a big issue in the country and particularly in the markets we serve.

We’ve seen upward of 40 percent increase in need in recent times.”

Tops supports nonprofits Tops also takes great pride in its charitable contributions, having raised significant funds for various causes over the years. The annual Tops Charity Golf Outing generated more than $601,000 for Oishei Children’s Hospital, while its support for Children’s Miracle Network Hospitals raised more than $407,000 in 2024.

In addition, Tops has been a longstanding supporter of

Food d

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the Juvenile Diabetes Research Foundation (now Breakthrough Type 1 Diabetes), contributing $339,000 in 2024 and more than $22 million since 1990.

But Tops’ community efforts extend beyond financial investments.

“Our participation in Buffalo’s Safe Sleep program has assisted thousands of families by providing essential education and resources on infant and toddler care, demonstrating our dedication to the health and well-being of the most precious yet most vulnerable members of the neighborhoods we are fortunate enough to call home,” Brocato said.

Tops in Education signature program From September through May, Tops BonusPlus Card holders can earn up to 5 percent back on any purchases they make from select Tops family store brands for their local schools.

Customers can select up to three participating schools to benefit. More than 1,000 schools located within the various Tops operating markets are registered on the retailer’s website.

Through the program, Tops has donated nearly $2 million to local schools in the community, noted Kathy Allen, Senior Manager of Community Relations for Tops.

Kathy Allen

Food drive at a Tops store in Depew, New York

The 2024 Clean Sweep team

Food 2 Families fundraiser

Kids Escaping Drugs telethon

Benefit golf tournament for Oishei Children’s Hospital

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Hispanic Heritage Month

Check presentation from Taste of Buffalo fundraiser

Pearl Young Food Drive

Ride for Roswell

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