A long-standing restriction limiting grocery competition in Crowsnest Pass, Alberta, has been lifted following an investigation by the Competition Bureau. Empire Company Limited, the parent company of Sobeys, has agreed to remove a property control that prevented any new grocery store from opening in the area since 2017.
The move could transform the local grocery landscape as Empire’s IGA store is currently the only grocery store there. The Bureau’s investigation found that property control, a commercial real estate use restriction, shielded the IGA store from competition and stifled market dynamics.
“Market forces – not property controls – should determine whether and where new grocery stores can open in communities across Canada,” said Matthew Boswell, Commissioner of Competition. “The removal of this property control in Crowsnest Pass will allow for more grocery competition to the benefit of its residents. We encourage all businesses that use property controls to review them and ensure that they comply with the law.”
The Competition Bureau is continuing its investigation into the use of property controls by the parent companies of Sobeys and Loblaw. These controls, which include exclusivity clauses in leases and restrictive covenants on land use, are common in retail settings across Canada, but can make it difficult or even impossible for competitors to open new stores, potentially harming consumer choice and driving up prices.
Property Controls
Exclusivity Clauses: Found in commercial leases, these clauses prevent landlords from leasing space to tenants that compete with existing businesses.
Restrictive Covenants: Restrictions on land use that prevent new owners or tenants from using the property for competing businesses.
Empire Company Limited operates 1,600 stores across Canada, including brands like Sobeys, Safeway, FreshCo, Farm Boy, and Longo’s. The removal of the Crowsnest Pass restriction comes amid broader scrutiny of anti-competitive practices in the grocery industry.
The Bureau says enforcement in this area has been ramping up. In June 2024, it obtained court orders to advance its investigations, and in August, it invited public feedback on its approach to property controls under the modernized Competition Act.
