Empire Company Limited, the parent company of Sobeys, has unveiled a fresh strategy to address competition within the regions surrounding its stores in Canada. The company has disclosed plans to alter its utilization of “property controls,” legal agreements that have traditionally restricted competitors from establishing new stores in specific locations, limiting consumer access to affordable groceries.
In response to mounting scrutiny and calls for appropriate use, Empire emphasized the need for caution in employing these controls. The Competition Bureau of Canada has been investigating the practice of property controls since 2024, seeking transparency and potential limitations on their application within the grocery industry.
The Competition Bureau recommended in 2023 that provinces and territories should consider restrictions or bans on property controls. Manitoba took action in June 2025 to address these concerns.
Empire’s commitment to modifying its approach to property controls follows increased awareness and criticism of their impact on competition and consumer choice. Jenna Khoury-Hanna, an associate lawyer, expressed optimism about the potential for new business opportunities resulting from these changes.
The grocery industry typically employs two types of property controls: restrictive covenants and exclusivity clauses. Empire has pledged to refrain from implementing new restrictive covenants and enforcing existing ones, signaling a shift in its operational practices.
While industry experts welcome Empire’s initiative, concerns remain regarding the lack of transparency surrounding property controls and their enforcement mechanisms. The Competition Bureau has underscored the importance of competition in keeping grocery prices in check, emphasizing the need for ongoing vigilance in monitoring market dynamics.
The impact of Empire’s decision on the Canadian grocery market remains uncertain, with experts suggesting varying effects based on geographic location. Notably, other major retailers like Walmart Canada and Loblaws’ parent company have also announced plans to move away from property controls.