Empire Company Limited, the parent company of Sobeys, has unveiled a new strategy to address competition within the areas surrounding its stores across Canada. In an announcement on Tuesday, the company revealed its decision to revamp the utilization of “property controls,” which are legal agreements that can impede competitors from establishing stores in specific locations. These property controls have been employed for many years, dictating where new grocery outlets can operate.
Acknowledging the heightened scrutiny in this area, Empire emphasized the importance of ensuring the appropriate use of property controls. Since 2024, the Competition Bureau of Canada has been investigating the application of property controls, taking legal action to compel Empire to provide documentation and testimony for its inquiry. Notably, the bureau has not made any allegations of misconduct.
In 2023, the bureau recommended that provinces and territories take measures to restrict or prohibit property controls within the grocery industry. Manitoba implemented this recommendation in June 2025. Although the Competition Bureau’s focus has been on the Halifax Regional Municipality, the investigation holds significance at a national level.
Empire’s decision not to introduce new restrictive covenants and to refrain from enforcing existing ones, including those on previously sold properties, is part of their revised approach. Furthermore, the company is scaling back its reliance on exclusivity clauses, which are typically included in long-term leases signed during store openings. These clauses can restrict nearby stores from selling specific products carried by major grocers.
While industry experts and officials welcome Empire’s commitment to change, concerns persist regarding the lack of public transparency surrounding property controls. The Competition Bureau has highlighted the potential impact of limited competition on grocery prices, although the precise effects of Empire’s actions on the Canadian market remain uncertain.
Pascal Thériault, an agricultural economist at McGill University, noted that the move could have varying implications depending on the region. He pointed out that in smaller communities, the change could be beneficial by allowing a broader range of businesses to establish themselves. However, in larger urban areas, the impact on consumers may be more limited.
Empire’s shift away from property controls aligns with similar initiatives by Walmart Canada and the parent company of Loblaws. This shift marks a broader industry trend towards reducing the use of restrictive measures that may hinder competition.