Empire Company Limited, the parent company of Sobeys, has unveiled a new strategy to address competition in the regions where its stores operate. The company recently announced a shift in its utilization of “property controls,” which are legal arrangements that can prevent competitors from establishing stores in specific locations. These controls have been in place for years, dictating the potential locations for new grocery outlets.
Acknowledging concerns raised by critics about reduced competition and increased travel distances for consumers seeking affordable groceries, Empire emphasized the need for responsible use of these property controls. Since 2024, the Competition Bureau of Canada has been investigating the use of property controls, although no findings of misconduct by Empire have been reported.
In response to the bureau’s recommendations in 2023, Manitoba became the first province in June 2025 to limit or prohibit property controls within the grocery industry. The Competition Bureau’s scrutiny has primarily focused on the Halifax Regional Municipality, shedding light on the broader implications for the national market.
Empire’s commitment includes refraining from implementing new restrictive covenants and ceasing enforcement of existing ones, even on properties previously sold. The company is also revising its approach to exclusivity clauses, often included in long-term leases to restrict neighboring stores from selling specific products carried by major retailers.
Jenna Khoury-Hanna, an associate lawyer at Kinch Eddie Litigation, views these changes positively, anticipating new business opportunities in previously restricted locations. The move by Empire aligns with similar decisions by other major players in the industry, such as Walmart Canada and the parent company of Loblaws, to move away from restrictive property controls.
While the impact of these changes on the Canadian grocery market remains uncertain, experts like Jamie Baxter from Dalhousie University’s law school stress the importance of transparency in property control enforcement. Pascal Thériault, an agricultural economist at McGill University, suggests that the effects may vary across different regions in Canada, with potential benefits in smaller communities and limited impacts in larger urban areas.
The public focus on property controls in the grocery sector underscores the significance of competition in ensuring fair prices and market accessibility for consumers. Empire’s commitment marks a significant step towards fostering a more competitive grocery market landscape in Canada.
