Empire, the parent company of Sobeys’, Farm Boy, Foodland, Safeway, IGA, FreshCo and other store banners, agreed to relax its use of property controls following a probe by Canada’s Competition Bureau, which argues the tactics reduce competition in the grocery industry.
Details were revealed by the Competition Bureau in a release Tuesday.
“The agreement with Empire removes barriers to competition and will support new entry and increased competition from retailers selling everyday essential items,” said the Competition Bureau.
“The Bureau is committed to identifying and addressing barriers that limit competition across the food supply chain so that Canadians see the benefits of competition in the form of lower prices, greater choice and increased innovation.”
The new consent agreement reflects prior commitments by Empire in July to change its use of property controls, and by registering the agreement with the Competition Tribunal, those commitments are now legally binding and enforceable.
Under the terms of the agreement with the Competition Bureau, Empire agreed to “no longer enforce existing restrictive covenants, enter new restrictive covenants, or request that others establish restrictive covenants that benefit Empire.”
Get breaking National news
The agreement also states that Empire will “limit its use of exclusivity clauses.”
-
![]()
Valleyview IGA reopens in west Edmonton -
![]()
Province encourages Sobey’s parent company to remove all grocery store competition restrictions -
![]()
Competition watchdog expands probe into Sobeys’ use of property controls amid competition concerns -
![]()
Competition Bureau expands probe of Sobeys owner’s use of property controls -
![]()
Manitoba government taking Sobeys to municipal board over property controls
Property controls, the Bureau explains in the release, are specific legal restrictions that limit how a property can be used by others.
For example, with commercial properties, exclusivity clauses can legally prohibit landlords from leasing space out to another tenant if it competes with an existing tenant. This means an exclusivity clause could potentially limit how many other grocery stores can be on one property.
Another type of property control the Bureau lists is restrictive covenants, which prevent a land owner or purchaser from using property to operate or lease to operators certain types of businesses. This means if someone wants to purchase a commercial space that is available, the restrictive covenant could state that the purchaser can’t use the space for a grocery store.
Since Empire can no longer enforce certain property controls under the agreement, the company must also consider and respond to requests to have existing property controls removed, the Bureau states separately from the release in a backgrounder.
Some of those property restrictions may still appear in existing records, leases or agreements, and any business, property owner or other interested party can request those restrictions be removed by contacting Empire.
This comes as food affordability remains a challenge for millions of Canadians amid the heightened cost of living, with a recent study finding nearly half are putting affordability ahead of nutrition and taste when it comes to buying food.
The Bureau argued in a 2023 study that increasing competition in the grocery industry could help improve food affordability.
This also follows several other investigations into grocery conglomerates, including Loblaw, which since agreed to end its use of property controls in Canada.
And when I refer to Sobeys I’m referring to them as the parent company operating the foodlands up the Bruce peninsula. I was a proud IGA franchisee as was my father who was also VP of retail operations with the Oshawa group that owned the IGA franchise structure and the corporate Food Cities Etc.
I’m a second generation grocer you are only at the tip of the iceberg when it comes to how these people manipulate the market I am now retired and live on the Bruce peninsula where Sobeys operate every Grocery store from Wiarton to Tobermory.. the pricing program is for tourists and leaves the locals many of which are on very fixed incomes and struggle to make ends meet but with no choice but to pay exorbitant prices at the till or drive or arrange transportation to go to Owen Sound where there is a competitive market. When the IGA program was run by Oshawa group all the franchise stores regardless of location maintained equal pricing. It not only made the corporation extremely successful with consumer confidence But as franchisees we were proud To be part of the food basket for our communities. I’m disgusted with how Empire Corporation has chosen to operate.. They are bullies in the industry and have very little if any respect in many demographics
These controls should be outlawed completely, for all business and realestate transactions.
“Why wait? Discover new faces and exciting conversations today! 🔥” join profile
What kind of idiot landlord is so desperate for a tenant that he has to sign an exclusivity agreement?
These big grocery chains are in complete control of the pricing because Canada doesn’t have free competition they have monopolies that control everything. Look at the Airline’s, telecommunications, internet just to mention a few Canada has allowed companies to monopolize and kill competitive pricing
Sobeys, better known as S.O.B.s for high prices, restrictive covenants, and unfair competition.
Please let’s stop with the “czars” we are not Russia. Not yet, despite what the CONs are trying to do to divide us.
Let’s bring in some American competition into this and the telecom spaces.
Fugging sacks of shat they are, one day they’ll get what they deserve
Yeah…and telecoms were to not charge cancellation or activation fees…
Wanna see my bill?
“The Bureau argued in a 2023 study that increasing competition in the grocery industry could help improve food affordability.”
Nope! What would help is dropping all the liberal carbon, plastic, packaging, and grocery taxes. Are these clauses an eastern Canadian thing? In my area, I have at least 6 different grocers within a 5 minute drive.