Produce is shown in a grocery store in Toronto on Friday, Nov. 30, 2018. Canada's competition watchdog is expected to release a study today examining whether the highly concentrated grocery sector is contributing to rising food costs. THE CANADIAN PRESS/Nathan Denette
GATINEAU, Que. – Canada’s grocery sector needs better competition to help keep food prices down and encourage new entrants, the country’s competition watchdog has found.
In a highly anticipated study released Tuesday, the Competition Bureau says concentration in the grocery industry has increased in recent years with the largest grocers increasing the amount they make on food sales.
It says most Canadians buy groceries in stores owned by a handful of grocery giants, with Canada’s three largest grocers – Loblaws, Sobeys, and Metro – collectively reporting more than $100 billion in sales and $3.6 billion in profits last year.
The study says Canada needs solutions to help bring grocery prices in check and more competition is a key part of the answer.
It proposes four recommendations to improve competition and lower prices, including an innovation strategy to support new grocery businesses and expand consumer choice.
The competition watchdog also recommends governments encourage the growth of independent grocers and the entry of international grocers into the Canadian market, consider introducing accessible and harmonized unit pricing requirements to help Canadians compare grocery prices and take measures to limit property controls in the grocery industry.
This report by The Canadian Press was first published June 27, 2023.
Companies in this story: (TSX:L), (TSX:EMP.A), (TSX:MRU).
