The Competition Bureau of Canada has announced its continued investigation into competition within the Canadian grocery store sector. They have obtained court orders compelling Sobeys’ parent company to provide documents and testimonies regarding property controls that could restrict new grocery store establishments. The bureau highlighted that a lack of competition in the grocery industry may lead to increased prices, reduced quality, and limited availability.
Concerns have been raised by industry experts about the possibility of “food deserts” emerging due to inadequate competition, forcing people to travel long distances to access groceries. The bureau’s ongoing inquiry, initiated in 2024, has focused on property control practices not only in the Halifax region but also nationwide.
Empire Company Limited, the parent corporation of various grocery chains including Sobeys, Farm Boy, Safeway, IGA, Foodland, and FreshCo, is subject to the recent court orders. These orders are anticipated to offer insights into how Empire negotiates property controls and their potential consequences. Investigative work by CBC’s Marketplace and CBC Nova Scotia uncovered numerous property control agreements across Canada.
While some have expressed uncertainty about the impact of the bureau’s actions on consumer prices, Stuart Smyth, a professor at the University of Saskatchewan, pointed out the complexity of the issue. He emphasized that the current mall structure and contract negotiations with property management companies play a significant role in pricing dynamics. Smyth believes that immediate policy changes are unlikely to halt the rising trend in food prices due to factors such as currency exchange rates affecting food costs.
Regarding the government’s food security strategy, Smyth expressed skepticism about its ability to relieve consumers in 2026. He stated that any potential effects from the strategy might only be visible in the longer term. Sobeys was contacted for comment on the Competition Bureau’s recent actions but did not respond by the deadline. Empire has been given 90 days to produce the required records and returns as per the bureau’s order.