Wal-Mart is another major player that's come into the market. CIBC World Markets reported on this earlier this year. It isn't necessarily the independent that gets hurt by Wal-Mart coming into the market. Of course, anybody that comes in and sells food.... I mean, we've even been going to Canadian Tire and buying Kraft Dinner every once in a while these days. It's a little silly right now. When there's a major competitor coming into the market, you need to be efficient against them. There isn't any independent that's in business because they're afraid of that competition. We have some very smart entrepreneurial independents in the market right now.
CIBC World Markets were able to prove that the more inefficient store goes out of the market. In fact, in all cases across the country, there is no record of an independent going out of business because of Wal-Mart opening, but there is evidence of major distributors closing stores.
Now, what impact is Wal-Mart having through the chain? That's a different question. Wal-Mart can buy at a lower price than anybody else because it buys worldwide. Even Canadian manufacturers are going to Bentonville, Arkansas, to plead their case, so obviously they're buying at a certain price. Then you have to back up and realize that the major distributors in Canada I talked about, in order to compete, are competing on price. They need to get that same price. That creates pressure from them to buy better from the manufacturer, so that's where the pressure comes onto the manufacturer to support their products even more, to spend more money to support the product and to get it on the marketplace.
Our people can't do that. The independent can't do that, so the independent needs to be very wily to compete in this current marketplace. It is very difficult, sir.
Is there a solution to it? As the bureau will tell you, that's good for consumers in the short run. I'll submit to you that in the long run, when all you have are major distributors to buy from, you'll lose your markets for your crops, and you'll lose the rich diversity we have in Canada in retail.