TORONTO: Empire Company Limited, the parent company of Sobeys, has announced significant changes to its use of property control agreements, a long-standing practice that has been criticized for limiting competition in Canada’s grocery sector.
Property controls are legal agreements that can prevent competing retailers from opening stores near existing grocery locations. Critics argue that such restrictions reduce consumer choice, limit market competition, and can contribute to higher grocery prices by making it more difficult for new retailers to enter local markets.
In a statement released Tuesday, Empire said it would revise how it applies these agreements, acknowledging growing public and regulatory scrutiny.
“While these arrangements are not inherently anti-competitive, we recognize the increased scrutiny surrounding their use and the importance of ensuring they are applied appropriately,” the company said.
The announcement comes as the Competition Bureau of Canada continues an investigation launched in 2024 into the use of restrictive property controls in the grocery industry. The bureau has sought court orders requiring Empire to provide documents and testimony as part of the inquiry but has not reached any findings of wrongdoing.
The Competition Bureau previously recommended that provinces and territories consider limiting or prohibiting such agreements to encourage greater competition in the grocery market. Manitoba became the first province to implement restrictions in June 2025.
Legal experts welcomed Empire’s decision, describing it as a positive development for consumers and independent retailers.
Jenna Khoury-Hanna, an associate lawyer who previously researched restrictive covenants affecting former Sobeys locations in Halifax, said the policy change could create new opportunities for businesses that were previously unable to establish stores because of the agreements.
She noted that easing property restrictions may allow greater retail competition in communities where market entry had long been constrained.
The Competition Bureau has focused part of its investigation on the Halifax Regional Municipality, although the broader inquiry covers the company’s practices across Canada.
Empire’s policy shift is expected to increase competition within the grocery sector and potentially improve consumer access to more affordable food options in the years ahead.
NEWS DESK
PRESS UPDATE