Empire Company Limited, the parent organization of Sobeys, made an announcement on Tuesday regarding a new strategy for managing competition in the regions where its stores are situated. They revealed plans to revise the utilization of “property controls,” which are legal agreements that have the ability to prevent competitors from establishing their stores in specific locations. These agreements, in place for years, can restrict the opening of new grocery stores, thereby potentially reducing competition and necessitating consumers to travel farther for economical groceries.
Acknowledging the heightened scrutiny surrounding these arrangements, Empire stated, “While these agreements are not inherently anti-competitive, we recognize the increased scrutiny in this area and the importance of ensuring they are used appropriately.” The Competition Bureau of Canada has been investigating the use of property controls since 2024 and has taken legal actions to obtain documents and testimony from Empire, although no findings of misconduct have been announced.
In 2023, the bureau recommended that provinces and territories consider imposing restrictions or bans on property controls within the grocery industry. Manitoba implemented such measures in June 2025. While the focus of the Competition Bureau’s investigation has been on the Halifax Regional Municipality, the implications extend nationwide.
Empire has decided to cease the establishment of new restrictive covenants and will not enforce existing ones, including those on previously sold properties. They are also scaling back the application of exclusivity clauses, typically associated with long-term leases that may restrict nearby stores from selling specific products carried by major grocers.
Jenna Khoury-Hanna, an associate lawyer, expressed optimism over the potential opportunities arising from Empire’s decision, especially for other businesses eyeing locations previously off-limits due to property controls. Experts like Jamie Baxter from Dalhousie University’s law school have welcomed Empire’s commitment but highlighted the lack of public transparency in property control enforcement.
The Competition Bureau has emphasized the impact of limited competition on grocery prices but the exact influence of Empire’s actions on consumers remains uncertain. While some believe that the move could benefit smaller communities by fostering competition, agricultural economist Pascal Thériault suggests that the effect might be minimal in larger urban areas.
Empire now joins Walmart Canada and the parent company of Loblaws in shifting away from property controls, aligning with a broader industry trend.