Crowsnest Pass will welcome a new grocery store following a ruling that promotes competition in the area
The Bureau found that a restriction put in place in 2017 kept the IGA as the sole grocery store, blocking any competition. These property controls are often part of commercial leases and can restrict what types of stores can open nearby.
The Bureau believes these clauses hurt grocery competition. With this new agreement, a competitor can now move ahead with plans to open a second grocery store in Crowsnest Pass. Competition Commissioner Matthew Boswell emphasized that market forces should dictate grocery store openings, not property controls.
Empire, which owns Sobeys Inc., didn’t comment on the ruling. They operate around 1,600 stores across Canada under various names. The Bureau is also looking into property controls used by other major grocery chains like Loblaws.
Recent changes to the Competition Act have given the Bureau more authority to promote competition. Gary Sands from the Canadian Federation of Independent Grocers expressed his support for the Bureau’s actions, especially in smaller towns where grocery options are limited.
He pointed out that these property controls not only hurt competition but also affect food security. In a related move, Walmart Canada announced it would stop using property controls nationwide. This followed Loblaw’s commitment to do the same if other grocers followed suit.
Sands hopes this announcement will encourage other grocery chains to reconsider their use of property controls, recognizing that they can be unnecessary barriers to competition and food security for Canadians.
