The Competition Bureau of Canada has revealed its progression in the examination of competition within the Canadian grocery store sector. They confirmed that they have secured orders from the Federal Court mandating the parent company of Sobeys to provide documentation and testimonies for their investigation into property controls.
Property controls are legal agreements that can hinder competitors from establishing stores in specific locations, thereby restricting the opening of new grocery outlets. The bureau emphasized that a lack of competition in the grocery industry may lead to elevated prices, inferior quality, and reduced availability of products.
Concerns have been raised by industry analysts regarding the potential creation of “food deserts” where individuals are compelled to travel long distances to access grocery stores. The bureau’s scrutiny, ongoing since 2024, has primarily concentrated on the Halifax region but extends to examining the utilization of property controls nationwide.
The recent court orders obtained pertain to Empire Company Limited, the parent firm of various stores including Sobeys, Farm Boy, Safeway, IGA, Foodland, and FreshCo. The Competition Bureau stated that these new court orders will furnish them with more insights into how Empire handles property controls and their probable repercussions.
Investigations by CBC’s Marketplace and CBC Nova Scotia unveiled instances of agreements covering numerous properties across Canada. Certain documents granted the grocer wide discretion in enforcing property controls, enabling them to unreasonably impede competition.
Despite the Competition Bureau’s actions, some experts in the grocery and food industry are uncertain about the potential impact on consumer prices. Stuart Smyth, a professor at the University of Saskatchewan, highlighted that altering the existing structure would pose a challenge and foresees no immediate policy measures to curb rising grocery prices.
Smyth underscored the reliance on imported fresh produce from the U.S., emphasizing that fluctuations in the Canadian dollar significantly impact food prices. He expressed skepticism about the effectiveness of the government’s recent food security strategy in alleviating consumer burdens in 2026.
Efforts to obtain a response from Sobeys regarding the Competition Bureau’s latest move were unsuccessful by the deadline. Empire has been given a 90-day window from the issuance of the order to furnish records and written returns as mandated by the Competition Bureau.