The Globe and Mail reports in its Saturday edition that stocks considered oligopolies -- in which a few players dominate one sector -- have generated returns that have easily beaten the S&P/TSX Composite Index over the past 30 years, and they have done it with lower volatility. The Globe's David Berman writes that among the best oligopolies is Loblaw, with a 10-year return, annualized, of 16.1 per cent. Loblaw is much more than an upscale grocer. It also operates discount grocery-store brands, such as No Frills, the pharmacy chain Shoppers Drug Mart and T&T Supermarket, the Asian food retailer. That gives the company a range that is hard to beat. Loblaw also delivers efficiencies of scale, generates valuable data on the spending habits of members in its PC Optimum rewards program and has a lock on some of the best locations for its 2,400 stores nationwide. Mr. Berman notes that the grocery-store oligopoly carries some baggage, though. There was a bread price-fixing scandal several years ago and today, Big Grocer bosses have been cast as villains as politicians look for someone to blame for recent soaring food-price inflation. Over the past two years, Loblaw's share price has risen 22.6 per cent.