Empire Company Limited, the parent company of Sobeys, has unveiled a new strategy for handling competition in the areas surrounding its stores. The company recently announced a shift in its use of “property controls,” which are legal agreements that can restrict competitors from establishing stores in specific locations. These controls have been a longstanding practice, influencing the placement of new grocery outlets and potentially reducing local competition, forcing consumers to travel farther for affordable groceries.
In response to the heightened scrutiny in this area, Empire acknowledged the importance of ensuring the appropriate use of property controls. The Competition Bureau of Canada has been investigating the use of property controls since 2024 and has taken legal action to compel Empire to provide documents and testimony. While no wrongdoing has been determined, the bureau recommended in 2023 that provinces and territories consider limiting or prohibiting property controls in the grocery sector. Manitoba implemented such restrictions in June 2025.
The Competition Bureau’s examination has focused on the Halifax Regional Municipality, with implications for the entire country. Empire’s decision to forego new restrictive covenants and discontinue enforcing existing ones, even on previously sold properties, marks a significant shift. Additionally, the company is scaling back its use of exclusivity clauses, which are typically included in long-term leases to restrict certain products from being sold by nearby stores.
Experts like Jenna Khoury-Hanna, an associate lawyer, and Jamie Baxter, an associate professor specializing in property law, have welcomed Empire’s commitment to revising its property control practices. However, concerns remain regarding the lack of transparency and public awareness surrounding these controls, as enforcement largely rests with individual property owners.
While the move by Empire aligns with similar actions by other major retailers like Walmart Canada and Loblaws, the overall impact on consumers in the Canadian grocery market remains uncertain. Agricultural economist Pascal Thériault highlighted potential benefits in smaller communities but suggested that the effects might be limited in larger urban areas. The shift away from property controls could lead to increased competition and potentially lower prices for consumers, particularly in regions where restrictions have stifled market diversity.
Overall, the industry’s reconsideration of property controls is seen as a positive step towards promoting fair competition and enhancing consumer choice in the grocery market.