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Small businesses on Dalrymple Street in Greenock, Scotland

A small business, also called a mom and pop store by some in the United States, is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. The legal definition of "small" varies by country and by industry, ranging from fewer than 15 employees under the Australian Fair Work Act 2009, 50 employees in the European Union,[2] and fewer than 500 employees to qualify for many U.S. Small Business Administration programs.^[1] Small businesses can also be classified according to other methods such as sales, assets, or net profits.

Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: convenience stores, other small shops (such as a bakery or delicatessen), hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing, and online business, such as web design and programming, etc.

Characteristics of small businesses[link]

Size definitions[link]

The legal definition of "small" varies by country and by industry. In the United States the Small Business Administration establishes small business size standards on an industry-by-industry basis, but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7 million in annual receipts for most nonmanufacturing businesses.^[1] The definition can vary by circumstance – for example, a small business having fewer than 25 full-time equivalent employees with average annual wages below $50,000 qualifies for a tax credit under the healthcare reform bill Patient Protection and Affordable Care Act.^[2]

In the European Union, a small business generally has under 50 employees. However, in Australia, a small business is defined by the Fair Work Act 2009 as one with fewer than 15 employees. By comparison, a medium sized business or mid-sized business has under 500 employees in the US, 250 in the European Union and fewer than 200 in Australia.

In addition to number of employees, other methods used to classify small companies include annual sales (turnover), value of assets and net profit (balance sheet), alone or in a mixed definition. These criteria are followed by the European Union, for instance (headcount, turnover and balance sheet totals). Small businesses are usually not dominant in their field of operation.

The table below serves as a useful guide to business size nomenclature.

Business Size definitions

• Most cells reflect size not defined in relevant legislation • Some definitions are mulit-parameter, e.g., by industry, revenue, market share

Demographics[link]

According to a survey run in the United States among businesses having <500 employees in late 2010, about 50% of minute/micro-businesses are owned by women.^[3]

Franchise businesses[link]

Franchising is a way for small business owners to benefit from the economies of scale of the big corporation (franchiser). McDonald's restaurants, TrueValue hardware stores, and NAPA Auto Parts stores are examples of a franchise. The small business owner can leverage a strong brand name and purchasing power of the larger company while keeping their own investment affordable. However, some franchisees conclude that they suffer the "worst of both worlds" feeling they are too restricted by corporate mandates and lack true independence. However, in some chains, such as the aforementioned TrueValue and NAPA, franchises may have their own name alongside the franchise's name.

Advantages of small business[link]

A small business can be started at a very low cost and on a part-time basis. Small business is also well suited to internet marketing because it can easily serve specialized niches, something that would have been more difficult prior to the internet revolution which began in the late 1990s. Adapting to change is crucial in business and particularly small business; not being tied to any bureaucratic inertia, it is typically easier to respond to the marketplace quickly. Small business proprietors tend to be intimate with their customers and clients which results in greater accountability and maturity.

Independence is another advantage of owning a small business. One survey of small business owners showed that 38% of those who left their jobs at other companies said their main reason for leaving was that they wanted to be their own bosses.^{[citation needed]} Freedom to operate independently is a reward for small business owners. In addition, many people desire to make their own decisions, take their own risks, and reap the rewards of their efforts. Small business owners have the satisfaction of making their own decisions within the constraints imposed by economic and other environmental factors.^[4] However, entrepreneurs have to work very long hours and understand that ultimately their customers are their bosses.

Several organizations, in the United States, also provide help for the small business sector, such as the Internal Revenue Service's Small Business and Self-Employed One-Stop Resource.^[5]

Problems faced by small businesses[link]

Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is undercapitalization. This is often a result of poor planning rather than economic conditions - it is common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. For example, if the prospective owner thinks that he will generate $100,000 in revenues in the first year with $150,000 in start-up expenses, then he should have no less than $250,000 available. Failure to provide this level of funding for the company could leave the owner liable for all of the company's debt should he end up in bankruptcy court, under the theory of undercapitalization.

In addition to ensuring that the business has enough capital, the small business owner must also be mindful of contribution margin (sales minus variable costs). To break even, the business must be able to reach a level of sales where the contribution margin equals fixed costs. When they first start out, many small business owners underprice their products to a point where even at their maximum capacity, it would be impossible to break even. Cost controls or price increases often resolve this problem.

In the United States, some of the largest concerns of small business owners are insurance costs (such as liability and health), rising energy costs, taxes and tax compliance.^[6] In the United Kingdom and Australia, small business owners tend to be more concerned with excessive governmental red tape.^[7]

Another problem for many small businesses is termed the 'Entrepreneurial Myth' or E-Myth. The mythic assumption is that an expert in a given technical field will also be expert at running that kind of business. Additional business management skills are needed to keep a business running smoothly.

Still another problem for many small businesses is the capacity of much larger businesses to influence or sometimes determine their chances for success.

Small business bankruptcy[link]

When small business fails, the owner may file bankruptcy. In most cases this can be handled through a personal bankruptcy filing.^{[citation needed]} Corporations can file bankruptcy, but if it is out of business and valuable corporate assets are likely to be repossessed by secured creditors there is little advantage to going to the expense of a corporate bankruptcy.^{[citation needed]} Many states offer exemptions for small business assets so they can continue to operate during and after personal bankruptcy.^{[citation needed]} However, corporate assets are normally not exempt, hence it may be more difficult to continue operating an incorporated business if the owner files bankruptcy.^{[citation needed]}

Social Responsibility[link]

Small businesses can encounter several problems related to Corporate social responsibility due to characteristics inherent in their construction. Owners of small businesses often participate heavily in the day-to-day operations of their companies. This results in a lack of time for the owner to coordinate socially responsible efforts. ^[8] Additionally, a small business owner's expertise often falls outside the realm of socially responsible practices contributing to a lack of participation. Small businesses also face a form of peer pressure from larger forces in their respective industries making it difficult to oppose and work against industry expectations. ^[9] Furthermore, small businesses undergo stress from shareholder expectations. Because small businesses have more personal relationships with their patrons and local shareholders they must also be prepared to withstand closer scrutiny if they want to share in the benefits of committing to socially responsible practices or not. ^[10]

Job Quality[link]

While small businesses employ over half the workforce ^[11] and have been established as a main driving force behind job creation ^[12] the quality of the jobs these businesses create has been called into question. Small businesses generally employ individuals from the Secondary labor market. As a result, in the U.S. wages are 49% higher for employees of large firms.^[13] Additionally, many small businesses struggle or are unable to provide employees with benefits they would be given at larger firms. Research from the U.S. Small Business Administration indicates that employees of large firms are 17% more likely to receive benefits including salary, paid leave, paid holidays, bonuses, insurance, and retirement plans.^[14] Both lower wages and fewer benefits combine to create a job turnover rate among U.S. small businesses that is 3 times higher than large firms.^[15] Employees of small businesses also must adapt to the higher failure rate of small firms. In the U.S. 69% last at least 2 years, but this percentage drops to 51% for firms reaching 5 years in operation.^[16]

Benefits of Supporting Local Business[link]

By opening up new national level chain stores, the profits of locally owned businesses greatly decrease and many businesses end up failing and having to close. This creates an exponential effect. When one store closes, people lose their jobs, other businesses lose business from the failed business and so on. In many cases large firms displace just as many jobs as they create.^[17] Not only that but it also increases the costs of taxes. Instead of increasing a community’s revenue, big businesses actually shift money away from the community. Independent businesses depend on the many resources that a community can supply. They hire architects, contractors, hardware stores, interior designers, local advertisement agencies, accountants, business attorneys, and insurance companies. Local businesses also are more likely to supply locally produced products than chains, ultimately benefiting their community Large corporations on the other hand eliminate the need for local goods and services. >. [Milchen]

A lack of diversity can decrease the revenues in a community. When towns are interesting, they attract people from out of town. More personality and individuality can lead to more tourists, which, in turn leads to money placed directly into the community [Santa Fe Independent Business Report] ). The diversity of businesses is also important to the individuality of consumers. Oftentimes, independent retailers can adjust the products that they sell in order to fit the needs of their consumers and the unique tastes of their community. Local businesses are also more likely to support unique, new, and/or controversial products. Local bookstores can provide controversial books and can support small authors or local authors. The same idea helps out with local art and music. Bookstores and music shops are more likely to support local art and music than the mainstream stuff that large corporations provide.[Mitchell] Business chains decrease a community’s individuality because they ultimately choose what products reach their customers. This greatly narrows what products are available and shrinks diversity.

Marketing the small business[link]

This unreferenced section requires citations to ensure verifiability.

Finding new customers is the major challenge for Small business owners. Small businesses typically find themselves strapped for time but in order to create a continual stream of new business, they must work on marketing their business every day.

Common marketing techniques for small business include networking, word of mouth, customer referrals, yellow pages directories, television, radio, outdoor (roadside billboards), print, email marketing, and internet. Electronic media like TV can be quite expensive and is normally intended to create awareness of a product or service. Another means by which small businesses can advertise is through the use of “deal of the day” websites such as Groupon and Living Social. These Internet deals encourage new visitors to small businesses.

Example of keyword analysis based on market competition.

Many small business owners find internet marketing more affordable. Google AdWords and Yahoo! Search Marketing are two popular options of getting small business products or services in front of motivated Web searchers. Successful online small business marketers are also adept at utilizing the most relevant keywords in their site content. Advertising on niche sites can also be effective, but with the long tail of the internet, it can be time intensive to advertise on enough sites to garner an effective reach.

Creating a business Web site has become increasingly affordable with many do-it-yourself programs now available for beginners. A Web site can provide significant marketing exposure for small businesses when marketed through the Internet and other channels. Some popular services are WordPress, Joomla and Squarespace.

Social media has proven to be very useful in gaining additional exposure for many small businesses. Many small business owners use Facebook and Twitter as a way to reach out to their loyal customers to give them news about specials of the day or special coupons and generate repeat business. The relational nature of social media, along with its immediacy and 24-hour presence lend intimacy to the relationship small businesses can have with their customers, while making it more efficient for them to communicate with greater numbers. Facebook ads are also a very cost-effective way for small businesses to reach a targeted audience with a very specific message.

In addition to the social networking sites, blogs have become a highly effective way for small businesses to position themselves as experts on issues that are important to their customers. This can be done with a proprietary blog and/or by using a backlink strategy wherein the marketer comments on other blogs and leaves a link to the small business' own Web site.

A solid public relations strategy that utilizes speaking engagements, press releases, feature stories, events and sponsorships can also be a very cost-effective way to build a loyal following for a small business.

Contribution to the economy[link]

In the US, small business (less than 500 employees) accounts for around half the GDP and more than half the employment. ^[18] Regarding small business, the top job provider is those with fewer than 10 employees, and those with 10 or more but fewer than 20 employees comes in as the second, and those with 20 or more but fewer than 100 employees comes in as the third (interpolation of data from the following references).^[19] The most recent data shows firms with less than 20 employees account for slightly more than 18% of the employment.^[20] According to “The Family Business Review,” “There are approximately 17 million sole-proprietorships in the US. It can be argued that a sole-proprietorship (an unincorporated business owned by a single person) is a type of family business” and “there are 22 million small businesses (less than 500 employees) in the US and approximately 14,000 big businesses.” Also, it has been found that small businesses created the most new jobs in communities, “In 1979, David Birch published the first empirical evidence that small firms (fewer than 100 employees) created the most new jobs” and Edmiston claimed that “perhaps the greatest generator of interest in entrepreneurship and small business is the widely held belief that small businesses in the United States create most new jobs. The evidence suggests that small businesses indeed create a substantial majority of net new jobs in an average year.” Local businesses provide competition to each other and also challenge corporate giants.

Of the 5,369,068 employer firms in 1995, 78.8 percent had fewer than 10 employees, and 99.7 percent had fewer than 500 employees.^[21]

Sources of funding[link]

Small businesses in Biloela, Central Queensland, Australia, 1949

Small businesses use several sources available for start-up capital:^[22]

• Self-financing by the owner through cash, equity loan on his or her home, and or other assets.
• Loans from friends or relatives
• Grants from private foundations
• Personal savings
• Private stock issue
• Forming partnerships
• Angel investors
• Banks
• SME finance, including Collateral based lending and Venture capital, given sufficiently sound business venture plans

Some small businesses are further financed through credit card debt—usually a poor choice, given that the interest rate on credit cards is often several times the rate that would be paid on a line of credit or bank loan. Many owners seek a bank loan in the name of their business, however banks will usually insist on a personal guarantee by the business owner. In the United States, the Small Business Administration (SBA) runs several loan programs that may help a small business secure loans. In these programs, the SBA guarantees a portion of the loan to the issuing bank and thus relieves the bank of some of the risk of extending the loan to a small business. The SBA also requires business owners to pledge personal assets and sign as a personal guarantee for the loan.

The 8(a) Business Development Program assists in the development of small businesses owned and operated by African Americans, Hispanics, and Asians.^[23]

Canadian small businesses can take advantage of federally funded programs and services. See Federal financing for small businesses in Canada (grants and loans).

Business Networks and Advocacy Groups[link]

Small businesses often join or come together to form organizations to advocate for their causes or to achieve economies of scale that larger businesses benefit from, such as the opportunity to buy cheaper health insurance in bulk. These organizations include local or regional groups such as Chambers of Commerce, as well as national or international industry-specific organizations. Such groups often serve a dual purpose, as business networks to provide marketing and connect members to potential sales leads and suppliers, and also as advocacy groups, bringing together many small businesses to provide a stronger voice in regional or national politics.

Small Business Development Centers (SBDCs), operates in only 3 states, provide free and confidential counseling and low-cost training to small businesses.

The largest regional small business group in the United States is the Council of Smaller Enterprises, located in Greater Cleveland.^[24]

See also[link]

Business and economics portal

References[link]

• Birch, D. (1979). The job generation process. Unpublished Report, Massachusetts Institute of Technology, prepared for the Economic Development Administration of the U.S. Department of Commerce, Washington D.C.
• Birch, David (1987), Job Creation in America, How our smallest companies put the most people to work, The Free Press, New York
• Edmiston, Kelly. "The Role of Small and Large Businesses in Economic Development." Economic Review 1 (2010): 1-93. KansasCityFed.org. Web. 25 Oct. 2011.
• Shanker, Melissa Carey, and Joseph H. Astrachan. "Family Business Review." Sage Publication 9.2 (1996): 1-123. Print.
• Milchen, Jeff. "AMIBA | The Benefits of Doing Business Locally." AMIBA | The American Independent Business Alliance: Supporting Buy Local Campaigns and Local Independent Businesses across North America.
• Mitchell, Stacy. "AMIBA | The Multiplier Effect of Local Independent Business Ownership."AMIBA | The American Independent Business Alliance: Supporting Buy Local Campaigns and Local Independent Businesses across North America. Santa Fe Independent Business Report. Rep. Santa Fe Independent Business & Community Alliance, Nov. 2003.

External links[link]

• Business.usa.gov - One-stop shop for everything related to business in the USA
• [3] - AMIBA|American Independent Business Alliance

Galen G. Weston (also known as Galen Weston Jr.) (born 19 December 1972) is a Canadian businessman and the current executive chairman of Loblaw Companies Limited. He is the son of Willard Gordon Galen Weston and Hilary Weston.

Weston took over Loblaw Companies Ltd. in October 2006. Beforehand, he had held positions in the company for eight years and was a member on their Board of Directors. At that point the company was worth around $9 billion.^[1]

Weston has been featured in a number of recent television and radio commercials for Loblaws and its President's Choice line of products. Many of these ads have focused on a new environmentally friendly image for Loblaws,^[2] with others dealing with the semi-annual PC Insider's Report.

References[link]

This biography about a Canadian businessperson is a stub. You can help Wikipedia by expanding it. v t e

W. Galen Weston
Born	(1940-10-29) October 29, 1940 (age 71) Marlow, Buckinghamshire, England
Nationality	Canadian
Alma mater	University of Western Ontario
Known for	Executive Chairman of George Weston Limited and Chairman The W. Garfield Weston Foundation
Net worth	$ 7.6 billion (2012)[1]
Children	Galen G. Weston, Alannah Weston
Relatives	W. Garfield Weston (father) George Weston (grandfather)

Willard Gordon Galen Weston, OC, OOnt (born October 29, 1940), is a Canadian businessman and philanthropist as well as Executive Chairman of George Weston Limited, a leading food processing and distribution company. W. Galen Weston and family, with an estimated net worth of $US 7.6 billion, are listed as the second wealthiest in Canada and 133rd in the world by Forbes magazine (March 2011).^[2]

In addition to being one of the country’s leading bakers through wholly owned subsidiary Weston Foods, Galen Weston is also an experienced supermarket retailer who maintains controlling interest in Loblaw Companies Limited, Canada’s largest food retailer, through a family holding company. Weston is also head of the world’s second largest luxury goods retailer as Chairman of Holt Renfrew in Canada and the Selfridges Group, owner of Selfridges in the United Kingdom, Brown Thomas of Ireland, the De Bijenkorf department store chain in the Netherlands, and the recently acquired Ogilvy department store in Montreal. W. Galen Weston is Chairman of The W. Garfield Weston Foundation, a family-based private charitable trust which has made close to $200 million in donations over the past decade.

Early years[link]

W. Galen Weston was born to Reta and W. Garfield Weston at Marlow, Buckinghamshire, near London, England, in October 1940^[3] – the youngest of nine children. Garfield, a Canadian businessman whose father George Weston established George Weston Limited, had successfully expanded overseas during the 1930s by acquiring and modernizing biscuit and bread factories throughout the United Kingdom. In 1945, Weston and family returned to Canada but moved frequently as Garfield pursued various business ventures, which included supermarket chains in North America and Europe. Growing up, Galen Weston worked in the stores that comprised his father’s retail holdings. He once noted, “I’ve been a bag boy a thousand times in five languages.”^[4]

Ireland[link]

In 1961, after studying business administration at the University of Western Ontario, Galen Weston moved to Dublin to set up a grocery store with his own money. A second location followed and the outlets evolved into the “Powers” chain of supermarkets. Weston found the Irish Republic a land of opportunity:

“Southern Ireland in the early Sixties, in terms of growth, was where the real opportunities existed. The population was coming to Dublin, the European Community was becoming more and more aware of Ireland. Lemass was beginning to take a different perspective upon capital coming into the country and it looked like there was going to be a major opportunity for growth.” ^[5]

By 1965, Weston’s business had grown to six grocery stores. Four years later, he expanded his business interests with the purchase of a bankrupt department store Todd Burns which he renamed Penneys. Within a year, four more stores opened, all with a similar discount format. Two years later, the first Penneys outside of Dublin was launched, followed by eleven more stores, including one in Northern Ireland. Meanwhile, Weston married Hilary Frayne, one of Ireland’s top fashion models, in 1966. In the early Seventies, Weston expanded his grocery holdings with the acquisition of competitor Quinnsworth.^[5] Weston also purchased an interest in Brown Thomas, the upscale Dublin department store, and eventually acquired full ownership in 1984.

Loblaw[link]

In 1971, Galen Weston was asked by Garfield Weston, Chairman of George Weston Limited, to take a look at Loblaws, the company’s Ontario-based supermarket chain, which appeared headed for bankruptcy. He found a company deeply in debt with too many small, aging outlets, and a market share recently cut in half. “The big question then was should this chain be closed up or should we make the enormous investment in money and time to return it to its former place.... I felt that from a retailing standpoint Loblaws was the nucleus of potentially the finest company in Canada.”^[6]

In February 1972, W. Galen Weston was appointed Chief Executive Officer of Loblaw Companies Limited and immediately began consolidating operations. Financing was arranged through a Weston family holding company to free Loblaws from store leaseback agreements. Within a year, 78 money-losing locations were closed down. Weston noted that, “as a 200 store chain, we didn’t look very good. As a 100-store chain, we looked very good indeed.”^[7]

Galen Weston next hired designer Don Watt to remodel one of the chain’s Toronto outlets on a budget of only $30,000. “Loblaws is in such trouble that if it doesn’t work, it doesn’t matter. If it works – good.”^[8] The new store featured an expanded produce section moved the front, huge photographs of fresh fruits, vegetables, meats, and baked good, wood panelling and big, moveable display bins, in addition to new colours and logo. Sales dramatically increased. Loblaw also introduced a new advertising campaign with Canadian actor William Shatner of Star Trek fame who told viewers, “More than the price is right... but by gosh the price is right.”

Weston also brought in new managerial talent that included former university schoolmate Dave Nichol and fellow McKinsey consultant Richard Currie, who took on the role of “change agents.”^[9] In spite of no previous experience in the retail food industry, Weston gave Nichol and Currie the authority to force change on an often reluctant senior management. Nichol was made President of Loblaws in Ontario and later Loblaw International Merchants. He eventually replaced William Shatner on television and became closely associated with the company’s no name and President’s Choice brands. Currie’s logistical abilities saw him become President of Loblaw Companies Limited and, years later, George Weston Limited.

With the company’s holdings in the United States also losing money, particularly Chicago-based National Tea with some 700 supermarkets, Weston initiated a similar program of rationalization and renewal. He and Currie rented a townhouse in a Chicago suburb and spent months devising a plan that saw hundreds of outlets closed. Those stores that remained were renovated and rebranded in the hope of preserving the company’s stake in the U.S. market. Weston noted that “it was in the cards that National Tea should be, or would be, disposed of. But I felt we had a tremendous foothold in the U.S. and it must not be lost, almost at any price.”^[6]

Chairmanship[link]

In March 1974, W. Galen Weston was appointed Chairman and Managing Director of George Weston Limited. Months later, he was also made company President. As Galen took charge of North American operations, his brother Garry Weston, based in London, England, continued to head Associated British Foods. Although market share in Ontario was regained, the company continued to struggle. In 1976, year-end results showed a loss of $48 million for Loblaw, while parent George Weston Limited lost $14 million – the first recorded loss in the company’s history. That same year, Loblaw sold three unprofitable divisions - Chicago, Syracuse, and California State – representing 280 stores or half of its remaining U.S. retail outlets.

Within the first few years of Galen Weston’s chairmanship, $300 million of non-core assets were divested. “The one philosophical change as a result of my involvement with the company was to swing from a commitment to sales growth – almost regardless of geography of industry, sales came first, earnings second – to the question of return on capital employed and productivity in its most sophisticated sense."^[10]

Well into the 1970s, the company continued to sell assets to shore-up its balance sheet. In 1978, both Loblaw and George Weston Limited returned to profitability and in 1980 Weston’s showed record earnings of $76 million on sales of $6 billion.

Private labels[link]

In addition to investing in store renovations, early on Weston earmarked $40 million for the development of private label brands:

“We found it essential to change products and services before redesigning their image. For example, nothing is more disappointing for a consumer than to buy a private label product because of the attractiveness of its redesigned label and then find that the same quality that had disappointed her previously had not been improved." ^[11]

In March 1978, Loblaw launched “No Name”, a line of 16 generic products in simple black and yellow packaging with advertised savings of 10 to 40 percent over the national brands. Within weeks, some no name items had sold out. Months later, the company opened its first No Frills store, featuring no name, along with a limited selection of 500 items at discount prices. Consumer response was so favourable that it began converting older, more marginal stores to No Frills outlets.

As the product line-up expanded, Loblaw soon began experimenting with a variety of gourmet no name items. When sales of “President’s Blend Gourmet Coffee” started outselling every other grocery item on the shelf, the decision was made to introduce a premium line of store brand products. In 1984, “President's Choice” was launched, with each item endorsed by Loblaws President Dave Nichol and promoted through the popular advertising supplement Dave Nichol’s Insider’s Report. No Name and President’s Choice went on to account for almost a third of grocery item sales at Loblaw.

Holt Renfrew[link]

Although a bid by Galen Weston and George Weston Limited to acquire the Hudson's Bay Company and its chain of department stores failed in 1979, a second opportunity to acquire a major Canadian retailer presented itself several years later. In 1986, Wittington Investments, the Weston family holding company, announced the purchase of Holt Renfrew & Co. Limited. Press reports named a purchase price of $43 million for the fifteen store chain. Holt Renfrew subsequently underwent an extensive renovation program.

Free trade[link]

While Galen Weston expressed personal support for free trade with the United States, the signing of an agreement in 1988 resulted in another re-evaluation of his company’s asset mix. Through the late 1980s and 1990s, businesses that included biscuit and ice cream making, bathroom tissue manufacturing, milling, sugar refining and chocolate bar makings, were divested as domestic industries struggled to remain competitive:

“The historic east-west dynamics of the Canadian economy, as well as our small and scattered population, created structural inefficiencies in everything we did. And so, in response to free trade, we had to become competitive on our manufacturing side, which meant staying with fewer product categories and only those that could succeed on the North American scale. We restructured, we consolidated, and we did what had to be done for our long-term survival.”^[12]

Expansion[link]

On the retail side, Loblaw expanded through the 1980s. By 1984, it had become Canada’s largest and most profitable grocery retailer. At the end of the decade, the company owned over 300 stores and more than 1,200 franchise operations. Loblaw had begun opening large format, one-stop-shopping centres in Western Canada under the Real Canadian Superstore banner and within a decade these store accounted for a significant portion of earnings. But when similar large-scale ‘hypermarkets’ were opened in Ontario, they lost money and had to be scaled back. As a result of Loblaw owning much of its real estate, rather leasing, the company was able to reduce the size of its Supercentres by simply renting out the redundant space.

While retail formats were not easily transferable, the company’s ‘control label’ products proved successful from one store format and part of the country to another. By 1993, No Name and President’s Choice products accounted for $1.5 billion in revenue with sales that extended into the United States.

Windsor[link]

In 1989, Galen and Hilary Weston broke ground on ‘Windsor’, a private residential development on Florida’s east coast. Promoted as “a Village by the Sea,” the project combined Weston’s interest in modern architecture with decades of first-hand experience in commercial planning. Key concepts associated with the ‘New Urbanism’ were adopted and suburban sprawl rejected in favour of a narrow residential grid. Progressive Architecture commented that “behind Windsor’s seemingly conservative demeanour is a place imbued with the spirit of social reform.”^[13]

Divestiture and growth[link]

In 1995, Loblaw divested the last of its retail holding in the United States while Galen Weston oversaw the expansion of Canadian retail operations. Loblaw bought 80-store Agora Foods of Atlantic Canada for $81 million in late 1998 and soon thereafter announced the purchase of Quebec-based Provigo for $1.7 billion. Meanwhile, George Weston Limited continued to move away from resource-based industries. A decade earlier, White Swan tissue had been sold for $110 million and in 1998 the rest of E.B. Eddy Forest Products was divested. East and West coast fish processing operations, namely British Columbia Packers and Connors Brothers of New Brunswick, were also sold.

Weston greatly expanded the company’s American bakery operations with the purchase of Bestfoods Baking Co. from Unilever for (U.S.) $2.7 billion in 2003. With nineteen plants, Weston’s acquired brands that included Entenmann’s, Thomas’ English Muffins, and Arnold Bread.

Selfridges[link]

In 2003, it was announced that Galen Weston had completed a deal to buy Selfridges, the high-end British department store chain, through the Weston family holding company. Press reports quoted a purchase price £598 million. Plans to expand the number of stores were shelved in favour of extensive renovations to Selfridges’ flagship store, the historic Oxford Street landmark in the heart of London’s shopping district. Daughter Alannah Weston (married to the grandson and heir of the late Baronet Sir Desmond Cochrane and his Lebanese wife Lady Cochrane Sursock) was subsequently named creative director at Selfridges. The Selfridges Group has since expanded its holdings with the November 2010 acquisition of luxury department store chain De Bijenkorf of the Netherlands and the July 2011 purchase of the Ogilvy department store in downtown Montreal.

Philanthropy[link]

Galen Weston has been a supporter of a range of charitable causes, both personally and as Chairman of the W. Garfield Weston Foundation. The Foundation assists Canadian students through the Garfield Weston Awards, along with various scholarship programs, and made possible the Weston Family Learning Centre at the Art Gallery of Ontario and the Weston Family Innovation Centre at the Ontario Science Centre. The Foundation is a major contributor to the Nature Conservancy of Canada and its work to preserve wilderness lands. It also funds scientific research, especially into Canada’s ecologically fragile Arctic. It further provides financial support to a variety of social organizations that include food banks and the Salvation Army in Canada. He has also served as president of the board of the Royal Agricultural Winter Fair and as chairman and chief fundraiser for the Lester B. Pearson College of the Pacific. In 2004, Galen Weston and the Hon. Hilary M. Weston (26th Lieutenant Governor of Ontario 1997-2002) and Chair of the Renaissance ROM Campaign, donated $10 million to the initiative to revitalize the Royal Ontario Museum – a contribution matched by the W. Garfield Weston Foundation.^[14]

In recognition of his charitable work, W. Galen Weston was made an Officer in the Order of Canada in 1990. He was awarded the Order of Ontario in 2005.

Retrenchment[link]

In 2006, Loblaw recorded its first loss in almost two decades as a program to centralize administrative functions and consolidate warehouse operations resulted in chronic supply chains problems and customer complaints of empty shelves. Costs from integrating Provigo stores in Quebec and the unprofitable introduction of general merchandise in Ontario added to losses. In September, Loblaw President John Lederer and Chairman W. Galen Weston resigned. Galen G. Weston, Weston's son, became the new Executive Chairman with Allen Leighton appointed Deputy Chairman and later President. W. Galen Weston retained the post of Chairman and President of parent George Weston Limited. With the introduction of a ‘fix the basics’ program, designed to re-focus on food retailing, and a drive to resolve logistical problems, Loblaw returned to profitability in 2007.

In 2008, several major assets were sold, namely Neilson Dairy to Saputo for (CAN) $465 million and George Weston Bakeries and Stroehmann Bakeries in the United States to Mexican conglomerate Grupo Bimbo for (US) $2.5 billion. W. Galen Weston noted the sale of the American assets represented the company’s biggest deal ever and that these transactions left Weston and Loblaw with a combined $5 billion in cash to for future acquisitions.^[15] In 2009, Loblaw acquired T&T Supermarkets, a chain of Chinese grocery stores with operations in British Columbia and Ontario.

See also[link]

• List of billionaires
• George Weston - founder of George Weston Bakeries Limited
• W. Garfield Weston b. 1898-1978 - son of George Weston
• Garry Weston b. 1927, d. 2002 - son of Garfield Weston
• George G. Weston b.1964 - son of Garry Weston
• Guy Weston b. 1961 - son of Garry Weston
• Hilary Frayne Weston - wife of W. Galen Weston (Galen Weston Sr.)
• Fort Belvedere, Surrey The Westons' home in Britain

References[link]

External links[link]

• Forbes.com: Forbes World's Richest People
• George Weston .co.uk