The Competition Bureau of Canada has confirmed its ongoing investigation into competition within the Canadian grocery sector. This investigation focuses on property controls that may restrict potential competitors from establishing new grocery stores, leading to limited options for consumers. The bureau emphasized that a lack of competition in the grocery industry could lead to increased prices, lower quality, and reduced availability.
Concerns have been raised by industry experts about the possibility of “food deserts” emerging, where residents have to travel long distances to access grocery stores. The bureau has been actively looking into this issue since 2024, with a particular focus on the Halifax region while also examining property control practices nationwide.
Recent court orders obtained by the Competition Bureau target Empire Company Limited, the parent company of various grocery chains including Sobeys, Farm Boy, Safeway, IGA, Foodland, and FreshCo. These orders aim to gather more information about Empire’s negotiation of property controls and their potential impacts.
Market research conducted by CBC’s Marketplace and CBC Nova Scotia uncovered instances where property control agreements granted significant power to grocers, allowing them to hinder competition unfairly. Despite these developments, some experts remain uncertain about the immediate impact on consumer prices. Stuart Smyth, a professor at the University of Saskatchewan, highlighted the complexities of the situation and expressed doubts about any swift policy changes to curb rising grocery prices.
Smyth also mentioned the influence of external factors such as currency fluctuations on food prices, emphasizing the significance of imported produce from the U.S. in the Canadian market. He cast doubt on the effectiveness of recent government strategies in addressing food price concerns in the short term.
Efforts to obtain comments from Sobeys regarding the Competition Bureau’s actions have not yielded a response so far. Empire has been given a 90-day deadline to comply with the bureau’s orders for document production.
Overall, the investigation into property controls in the grocery sector remains a focal point for the Competition Bureau as it aims to ensure fair competition and consumer protection in the Canadian marketplace.