Sobeys’ parent agrees to ease property controls after watchdog’s probe
Empire, the parent company of Sobeys and other grocery chains, has agreed to stop using restrictive property controls following a probe by Canada's Competition Bureau. These controls, which limited competition by restricting other retailers from operating on the same properties, are now legally prohibited.
Why it matters
This agreement aims to increase competition in the Canadian grocery sector, potentially leading to lower prices and more choices for consumers.
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.”
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