A customer loads her groceries at a Metro store in Ste-Therese, Que., north of Montreal, Monday, April 15, 2019. Canada's competition watchdog is calling for changes to a common real estate practice used by grocers to limit competition. THE CANADIAN PRESS/Ryan Remiorz
GATINEAU, Que. – Canada’s competition watchdog is calling for changes to a common real estate practice used by grocers to limit competition.
It involves a grocer adding a special clause to a lease or deed – sometimes called a restrictive covenant – to limit the kind of store that can open at a location after the grocer leaves the property.
In a report on the country’s retail grocery sector, the Competition Bureau says these restrictive clauses curb competition and make it harder for new supermarkets to open.
It recommends governments take measures to limit property controls in the grocery industry – including banning their use.
Advocates say the real estate practice can create so called food deserts and contribute to food insecurity.
Retail expert Bruce Winder says despite the growth of online grocery shopping in recent years, most Canadians continue to rely on brick-and-mortar stores to buy groceries.
This report by The Canadian Press was first published June 27, 2023.
