Competition Bureau, Empire reach deal on grocer’s property control commitments
OTTAWA — The competition watchdog says Sobeys' parent company Empire Co. Ltd. has formalized its commitment to winding down property controls, which can limit rival grocers from setting up shop nearby.
The Competition Bureau has reached a deal with Sobeys' parent company, Empire Co. Ltd., to cease using property controls that hinder the establishment of rival grocers near former Sobeys locations. The Competition Bureau announced on Tuesday that Empire will officially halt the use of restrictive covenants, which commonly prevented competitors from opening stores on the former sites of businesses that moved away.
Empire, the parent company of Sobeys, Safeway, IGA, Foodland, and FreshCo, will also limit the use of exclusivity clauses that bar landlords from leasing space to a competitor that already exists in the area. These commitments are legally binding and enforceable, according to the bureau. Empire's spokesperson, Sarah Dawson, expressed satisfaction in resolving the matter of property controls with the Competition Bureau.
The grocer had pledged in July to abandon such measures following a broader probe initiated by the competition watchdog due to a Federal Court order. Property controls have garnered attention from regulators, politicians, and the public in recent years as rising food prices have heightened scrutiny of competition within the grocery industry.
The Bureau started investigating grocers for property control misuse in 2024 after a sector report deemed these tools a means for retailers to impede competition in local markets across Canada. Major grocers like Walmart Canada and Loblaw Cos. Ltd. have previously committed to eliminating property controls related to retail competition.
Written by urgent.news from CityNews's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
