Empire Company Limited, the parent company of Sobeys, has revealed a new strategy to address competition within the areas surrounding its stores across Canada. The company announced a shift in its approach to utilizing “property controls,” which are legal agreements that have traditionally restricted competitors from establishing stores in specific locations. These controls have been criticized for potentially reducing competition and requiring consumers to travel further to access affordable groceries.
Acknowledging the increased scrutiny in this area, Empire stated, “While these arrangements are not inherently anti-competitive, we recognize…they are used appropriately.” Since 2024, the Competition Bureau of Canada has been investigating the use of property controls and has sought court orders to obtain documents and testimony from Empire. The bureau has not made any findings of wrongdoing but did recommend in 2023 that provinces and territories consider limiting or banning property controls in the grocery sector, a move enacted by Manitoba in June 2025.
The Competition Bureau’s focus on property controls has centered on the Halifax Regional Municipality, with implications for the entire country. Empire’s decision to cease enforcing existing restrictive covenants, attached to the land itself, and to refrain from imposing new ones, is significant. Additionally, the company is scaling back its use of exclusivity clauses, commonly found in long-term leases to prevent nearby stores from selling certain products.
Experts, including Jenna Khoury-Hanna, an associate lawyer, and Jamie Baxter, an associate professor specializing in property law and food systems, have welcomed Empire’s commitment to reforming its property control practices. However, concerns remain about the lack of transparency surrounding these controls and their potential impact on grocery prices and market competition. Pascal Thériault, an agricultural economist, believes the effects will vary across Canada, with potentially more significant benefits in smaller communities compared to larger urban areas.
Empire’s move aligns with similar actions by other major retailers like Walmart Canada and Loblaws’ parent company, who have also announced plans to move away from restrictive property controls. The implications of these changes on the Canadian grocery market remain uncertain, with experts emphasizing the need for greater transparency and oversight in this area.
