Competition Bureau takes action to protect competition in the grocery industry in an Alberta community
Following a Competition Bureau investigation, Empire Company Limited has agreed to remove a property control that restricted retail grocery store competition in Crowsnest Pass, Alberta.
Empire Company is the parent company of Sobeys Inc., which operates 1,600 stores across all ten provinces. Its grocery store brands include Sobeys, Safeway, IGA, FreshCo, Foodland, Longos, Farm Boy, Thrifty Foods, Les Marchés Tradition and Marché BoniChoix.
Empire's IGA store is the only grocery store in Crowsnest Pass. The Bureau recently became aware of a restriction, also known as a property control, imposed by Empire in the region since 2017. The Bureau's investigation found that the restriction protected Empire's grocery store from competition and ensured that it would continue to be the only grocery store in the area.
READ: Walmart Canada axing some property controls amid grocery competition scrutiny
Competitor property controls are restrictions on the use of commercial real estate. These property controls are common across Canada, especially in retail settings. They can harm competition by making it difficult, or even impossible, for businesses to open new stores.
The Bureau's investigation and Empire's actions mean that a new grocery store competitor can move forward with plans to open a second store in Crowsnest Pass in 2025.
"Market forces—not property controls—should determine whether and where new grocery stores can open in communities across Canada. The removal of this property control in Crowsnest Pass will allow for more grocery competition to the benefit of its residents. We encourage all businesses that use property controls to review them and ensure that they comply with the law," said Matthew Boswell, commissioner of competition.
In June 2024, the Bureau announced that it obtained two court orders to advance its investigations into the use of property controls by Sobeys' and Loblaw's parent companies.
