Sobeys parent company Empire to stop using, enforcing some property control measures
Sobey's parent company said it will stop using a measure that can limit competing businesses from operating at specific locations.
Empire Co. outlined its approach in a new policy document released on Tuesday, nearly a month after the Competition Bureau broadened its investigation into the grocer's use of property controls.
Empire says it will no longer use or enforce so-called restrictive covenants, which grocers and other retailers have used to prevent rivals from opening a store on their former site after moving away.
These and other property controls such as exclusivity clauses have drawn attention from regulators, politicians and the general public in recent years as high food prices increased scrutiny about competition in the grocery industry.
Empire says it will stop enforcing or entering into exclusivity clauses on properties identified in the Competition Bureau's June court order and in Manitoba, where there is a law governing restrictions in the grocery sector.
The company also says it will limit the size, product scope and time frame of exclusivity provisions in future grocery store leases.
The move comes as the Competition Bureau last month broadened its probe into Empire for its use of property controls countrywide through a Federal Court order.
The Competition Bureau began investigating various grocers for their use of property controls in 2024, after its earlier report on the sector described property controls as a tool that retailers may be using to curb competition.
Some major grocers, including Walmart Canada and Loblaw Cos. Ltd., have already pledged to axe property controls relating to retail competition.
