US regional retailer Tops Friendly Markets is to buy a clutch of stores from GU Markets in the north-east of the country.

Tops has agreed to acquire 21 supermarkets in the states of New York and Vermont from GU Markets, an affiliate of wholesaler C&S Wholesale Grocers.

Twenty of the outlets will be operated under their current Grand Union banner; the other store will continue to have the Bryant's banner.

The deal will expand Tops' presence in northern and eastern New York and in northern Vermont.

C&S chief administrative officer Michael Newbold said the deal made "excellent strategic sense" for both companies.

"It allows Tops to strengthen its retail network, while C&S will continue to focus on its core business of providing innovative supply and logistics solutions to its wholesale customers," Newbold said.