The Sages Family Business Story: The Little Grocery Store That Grew

An Entrepreneurial Success Story

In 1954, at the age of 30, Thomas Sages opened a small grocery shop in his hometown. Driven by a passion for offering quality food at fair prices, Thomas leveraged his family’s farming background to build strong relationships with local suppliers. He sourced fresh fruits and vegetables at competitive rates and made customer service a top priority. His friendly demeanor, personalised service, and occasional home deliveries made customers feel truly valued.

The demand was overwhelming, and before long, Thomas opened a second and then a third shop across town. A business was born.

During this period, supermarkets were emerging in the US, Canada, and parts of Europe. Inspired by these developments, Thomas traveled to learn from others and soon launched his own supermarket, a large self-service store with checkout counters. After months of trial and error, he found a winning formula that combined affordability, quality, and outstanding service. His concept was ready for growth.

Scaling the Business

While supermarkets are favorable in terms of working capital, customers pay upfront while suppliers are paid later, the expansion required significant investment in land and construction. To fund this growth, Thomas turned to his family and friends for support, and secured bank loans. His parents contributed part of his inheritance in the form of land and cash, and his close friend David invested in a capital increase, acquiring 10% equity.

Thomas also introduced franchising, allowing independent store owners to use the brand in exchange for fees and access to a centralised purchasing structure. To strengthen the business, he recruited experienced managers and set aside 10% of the capital to reward their loyalty and performance.

Building a Family Business

Thomas’s wife, Martina, was an unwavering supporter from the beginning. She helped with bookkeeping and later joined Thomas on store visits and at events with key stakeholders. David and his family became close friends, frequently visiting the Sages home. It was through these visits that Thomas and Martina’s daughter, Caroline, met David’s son, David Junior. They married in 1976.

Thomas saw no better opportunity for his children than joining the family business. After university, Charles, Caroline, and Timothy were invited to work in the company and each received 5% of the shares. The rest of the ownership was held by the managers (10%), David (10%), Martina (10%), and Thomas (55%).

The children began as trainees in stores and progressed through the ranks. Thomas maintained a meritocratic environment and did not show favouritism. Caroline and Timothy worked well together, but Charles grew discontent and eventually left the business to join a retail consulting firm. Caroline took over the consumer credit division, while Timothy managed a growing number of stores and later led operations.

Generational Shifts and Growing Pains

Thomas celebrated his 80th birthday surrounded by family, including his son Louis from a previous marriage. Louis had been raised by his mother and stepfather but had recently reconnected with Thomas.

Though still involved in major decisions, Thomas had become risk-averse, often clashing with his children over proposed innovations such as; revamping the franchise model, exploring new distribution channels, investing in online platforms, and managing real estate separately. These disagreements led to strategic stagnation and slowed the company’s responsiveness to market shifts.

Governance and the Board

The company had a formal board of directors from the beginning, consisting of Thomas, Martina, and David. Initially, they met once a year over lunch to fulfill legal obligations and celebrate success. As the next generation joined, Thomas invited his children to the board. When Charles exited the company, he also left the board. After David Senior’s passing, David Junior inherited his shares and joined the board. Meetings increased to twice a year but remained focused on performance reviews rather than long-term strategy.

Planning for the Future

As the third generation came of age, Caroline and David Junior alongside Timothy invited their children to join the business. Lucie began as a shelf manager, and Jim was tasked with exploring international expansion. Meanwhile, Caroline’s younger son, Peter, launched an online wine business as a continuation of his university project and proposed a potential collaboration with the Sages Group.

Recognising the need for change, Timothy felt compelled to take action. The board lacked strategic vision, and urgent decisions were needed regarding international growth, financing, and digital transformation.

On the family side, the inclusion of new family members in the business raised key questions:

• Should all interested cousins be allowed to join?

• How would careers be managed and opportunities distributed fairly?

• Would Caroline and David Junior’s board positions and 15% combined ownership give their children preferential treatment?

• What role, if any, should Charles and Louis’s families play?

• How would Thomas’s majority shares be passed on?

The Complexity of Family Business Dynamics

Like your family, your business doesn’t stand still. It evolves. Family businesses are unique, shaped by the intricate dynamic of ownership, relationships, and shared purpose. These dynamics bring both opportunity and complexity, especially across generations.

At the core of every family business is a blend of emotional connection and strategic ambition. Navigating this terrain requires thoughtful governance, open communication, and a long-term vision.

KPMG Private Enterprise advisers understand the unique challenges and opportunities of family-owned businesses. We provide personalised advice and support across every stage of your business journey, ensuring your legacy grows as strong as your ambitions.

To read the full story: What's keeping family businesses awake at night?