The Competition Bureau advances its investigation into Empire Company Limited's use of property controls

Canada’s Competition Bureau has secured new Federal Court orders to broaden its investigation into how Empire Company Limited uses property controls. The watchdog is examining whether these real estate practices stifle competition across the country.

Empire is the parent company of major grocery brands like Sobeys, Safeway, and FreshCo. For convenience store operators in Eastern Canada, Empire is also the parent firm behind the Needs convenience chain.

What the court orders require

The new court orders require Empire to hand over internal records, provide written information, and give oral testimony.

Earlier in the probe, the Bureau focused its investigation on Empire’s real estate practices within the Halifax Regional Municipality. These new orders expand that scope nationwide. Investigators want to see how the company negotiates its property deals and how those decisions impact retail competition across Canada.

The Bureau noted that the investigation is ongoing and it has made no conclusion of wrongdoing at this time.

Why this matters to convenience retailers

Property controls are clauses in commercial real estate agreements that restrict how a property can be used. In the retail sector, these often take the form of restrictive covenants or exclusivity clauses. For example, a major grocer might negotiate a lease that bans a landlord from renting space in the same shopping plaza to any other business that sells food.

For convenience store owners and independent retailers, these controls can make it difficult or impossible to secure prime real estate or open new locations.