Empire Company Limited, the parent company of Sobeys, revealed a new strategy to address competition within the regions where its stores operate. The company announced a shift in its utilization of “property controls,” which are legal agreements that can prevent competitors from establishing stores in specific locations. These controls have been in place for years and can restrict the opening of new grocery stores, potentially leading to reduced competition and necessitating consumers to travel farther for affordable groceries.
Acknowledging the heightened scrutiny in this area, Empire stated, “While these arrangements are not inherently anti-competitive, we recognize the increased scrutiny in this area and the importance of ensuring they are used appropriately.” The Competition Bureau of Canada has been investigating the use of property controls since 2024 and has taken legal action to obtain documents and testimony from Empire. However, no conclusions of wrongdoing have been drawn.
In a 2023 recommendation, the bureau advised provinces and territories to limit or prohibit property controls in the grocery industry. Manitoba implemented this recommendation in June 2025. The Competition Bureau’s investigation has focused on the Halifax Regional Municipality, with implications for the entire country.
Empire has decided not to implement any new restrictive covenants and will not enforce existing ones, even on previously sold properties. Additionally, the company is revising its approach to exclusivity clauses, which are associated with long-term leases and can restrict nearby stores from selling certain products carried by major grocers.
Although Empire’s move is welcomed by experts like Jenna Khoury-Hanna and Jamie Baxter, concerns remain about the lack of transparency surrounding property controls. The Competition Bureau has highlighted the potential impact of reduced competition on grocery prices, but the effects of Empire’s decision on the Canadian market are uncertain. Agricultural economist Pascal Thériault noted that the impact may vary across different regions in Canada.
Empire’s decision follows similar moves by Walmart Canada and the parent company of Loblaws to phase out property controls. This shift is seen as a positive step, particularly in smaller communities, but its impact on consumers in larger urban areas remains to be seen.
