Empire’s Concession: A Small Step Towards a More Competitive Grocery Market

Empire Company Limited, parent company of Sobeys, has announced it will change its approach to property controls, a move hailed by advocates of competition in the Canadian grocery market. However, this concession raises more questions than answers about its impact on consumers and the industry.

Property controls have long been a contentious issue in Canada’s grocery market. These agreements block competitors from setting up stores in certain locations, limiting competition and driving up prices for consumers. Critics argue that they stifle innovation and force consumers to travel further to access affordable groceries.

The Competition Bureau of Canada has been investigating property controls since 2024, with particular scrutiny focused on Halifax Regional Municipality. While the bureau has made no conclusions of wrongdoing, its recommendations have prompted a wave of change in the industry. Manitoba was one of the first provinces to take action, limiting property controls in the grocery sector in June 2025.

Jamie Baxter, an associate professor at Dalhousie’s law school who studies property law and food systems, welcomed Empire’s commitment but noted that there is a lack of transparency around property controls. “I haven’t seen anywhere a more comprehensive listing of those,” he said.

The lack of transparency surrounding property controls makes it difficult for competitors to access certain locations, creating an uneven playing field that benefits companies like Sobeys over consumers. Empire’s decision not to make new restrictive covenants or enforce existing ones is a step in the right direction, but it highlights the need for greater transparency and accountability.

Some experts are skeptical about how far-reaching the changes will be. Pascal Thériault, an agricultural economist at McGill University, notes that while smaller communities may benefit from this concession, its impact on grocery stores in larger urban areas could be limited. “In smaller communities, it could be positive,” he said, “but when it comes to actual grocery stores, especially in larger urban areas, it is quite possible that it will be quite a limited impact for consumers.”

The complexity of this issue underscores the need for a more nuanced approach as the Canadian grocery market continues to evolve. Property controls are just one part of a broader landscape of challenges facing competitors.

This concession from Empire marks only a small step towards greater competition in the Canadian grocery market. As consumers and industry stakeholders watch the consequences unfold, they should remember that the devil lies in the details. What exactly will change? How far-reaching will these changes be? And what other obstacles lie ahead for those seeking to compete with Sobeys?

The answers to these questions remain unclear, but one thing is certain: this concession marks just the beginning of a long and winding road towards greater competition in the Canadian grocery market.