cut in half as a result of price wars among the major chains. South of the border, things looked somewhat better but only on the surface, with many of the company's supermarkets in large American inner cities in decline. A Canadian royal commission study years later noted "the company's failure to spend sufficient funds on the refurbishing of its existing supermarkets and the opening of new ones," in addition to a dividend policy that could not be justified on the basis of earnings. Loblaw also found itself constrained by various financial arrangements. In particular, so-called "lease and leaseback" agreements effectively prevented it from closing many of its smaller, money-losing outlets. To make matters worse, senior management was often reluctant or intransigent when it came to making operational changes. Faced with the possible bankruptcy of Loblaws, Garfield Weston asked his youngest son, W. Galen Weston, a successful entrepreneur and retailer in his own right, to take a close look at the chain to see if it could be saved. In February 1972, Galen Weston was appointed Chief Executive Officer of Loblaw Companies Limited. With financing secured through a family holding company that freed Loblaw from its leaseback agreements, Weston began rationalizing operations, shutting down dozens of unprofitable stores while remodelling those that remained. "As a 200 store chain, we didn't look very good. As a 100 store chain, we looked very good indeed." In addition to dozens of store closures, warehouse operations were consolidated and new distribution centres built. Galen Weston next brought in Toronto designer Don Watt. Known for his innovative product packaging and use of photography, Watt proposed a complete makeover of Loblaw's corporate image and retail space. Although Watt had little experience in supermarket design, Weston gave him the go ahead to remodel one of the stores. Weston reportedly told Watt that, "Loblaws is in such trouble that if it doesn’t work, it doesn't matter. If it works - good." On a budget of only $30,000, the renovations took place at night so the store could stay open during the day. Along with a complete redesign inside and out, that included new colours and a new repeating 'L' Loblaws logo, Watt made changes to traditional grocery store layout. He doubled the floor space of the produce department and moved it from the back of the store to the front. He also introduced new design elements such as moveable