Competition Bureau reaches agreement with Sobeys' parent company Empire to address grocery property controls

GATINEAU, QC, Sept. 22, 2026 /CNW/ -- The Competition Bureau has reached an agreement with Empire to address concerns related to its use of property controls in the Canadian grocery industry. Empire is the parent company of multiple grocery banners including Sobeys, Farm Boy, Safeway, IGA, Foodland, FreshCo, Marché Bonichoix and Les Marchés Tradition.

Property controls in the grocery sector restrict the use of commercial real estate for the sale of food products. The Bureau has found that they make it difficult, or even impossible, for businesses to open new stores or sell certain products and can reduce competition in local markets across Canada.

Following the commitments it announced in July, Empire has agreed to formalize these measures through a consent agreement registered with the Competition Tribunal, making their commitments legally binding and enforceable. Under the agreement, Empire agreed to:

• no longer enforce existing restrictive covenants, enter new restrictive covenants, or request that others establish restrictive covenants that benefit Empire; and,
• limit its use of exclusivity clauses.

This agreement will help provide greater certainty and remove barriers for market participants looking to enter or expand in the food retail sector. The Bureau recognizes the important steps taken by Empire to change how it uses property controls in the Canadian grocery sector. Details of the agreement are available in the backgrounder.

The Bureau's investigation into the use of property controls by other grocers is ongoing, and it continues to monitor the industry closely.

Quotes
"The agreement with Empire removes barriers to competition and will support new entry and increased competition from retailers selling everyday essential items. The Bureau is committed to identifying and addressing barriers that limit competition across the food supply chain so that Canadians see the benefits of competition in the form of lower prices, greater choice and increased innovation."

Jeanne Pratt
Interim Commissioner of Competition

Quick facts

• Consent agreements registered with the Competition Tribunal are legally binding and enforceable. They have the force and effect of a court order.
• Property controls are restrictions that limit how a property can be used by others. They include:
  • Exclusivity clauses, which are generally found in commercial leases and prohibit the landlord from leasing space to another tenant that competes with the existing tenant.
  • Restrictive covenants, which are restrictions on land that prevent a purchaser or owner of a commercial property from using the location to operate or lease to operators of certain types of businesses.
• Businesses, property owners and other interested parties who wish to have a property control formally removed may contact Empire.
• In June 2023, the Bureau published its grocery market study, which concluded that property controls can limit competition from new grocers and can deny consumers the benefits of competition including lower prices, greater choice and increased innovation.
• In June 2025, the Bureau published guidance on competitor property controls.
• Also in June 2025, the Bureau announced that it is monitoring Loblaw's commitment to end its use of property controls in Canada.
• In June 2026, the Bureau launched an examination of competition across Canada's food supply chain seeking to assess potential competition issues in production and processing, transportation and distribution, and retail pricing practices.

Related products

• Backgrounder: Competition Bureau reaches agreement with Sobeys' parent company Empire to address grocery property controls 

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

SOURCE Competition Bureau

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