Loblaws' profitability may or may not be due to their own errors, to the entry of Wal-Mart, to the growth of Costco, to a whole lot of other factors that are changing the dynamic of our food retailing and distribution industry.
The George Morris Centre, which is a leading independent expert on agribusiness, says there is very little doubt that margins of grocery stores in Canada have declined significantly since 1999. That is not consistent with a market that is being dominated. It is consistent with a market that is growing more, not less, competitive.