Why Your Grocery Bill Is Higher: How Loblaw and Other Chains Block Competition
If you’ve noticed your grocery bill climbing and fewer store options in your neighbourhood, there’s a reason beyond inflation. Major Canadian grocery chains—especially Loblaw—use property control clauses in real estate contracts to stop competitors from opening nearby. This practice keeps prices high and limits your choices.
Here’s what you need to know.
What Are Property Control Clauses?
Property control clauses are legal restrictions written into leases or land sales. They can block other grocery stores—and sometimes even unrelated businesses—from operating in the same plaza or neighbourhood for decades.
For example:
- A Sobeys contract in Edmonton blocks other grocers for 60 years.
- A Shoppers Drug Mart in Caledon, Ontario, limits 19 types of businesses for 50 years.
These clauses are legal, but the Competition Bureau has identified them as anti-competitive. They reduce competition, which is a key reason for high food prices.
Who Is Affected?
Every Canadian who buys groceries. If you live in a neighbourhood served by one major chain, you likely have fewer choices and pay more. This is especially true in smaller towns and suburbs where one grocer dominates.
Independent grocers and new entrants are also affected. They can’t open stores in areas controlled by these clauses, even if there’s demand.
What You Should Do
You can take action to push for change:
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Report anti-competitive behaviour to the Competition Bureau. If you suspect a property clause is blocking a new store, file a complaint at competitionbureau.gc.ca.
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Support independent grocers where possible. Local markets and smaller chains often offer better prices and more variety.
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Contact your MP. Tell them you want stronger enforcement of competition laws. The Competition Act was updated in 2024, with new powers taking effect in 2025, but property controls remain a loophole.
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Shop around. Compare prices at different stores, even if it means driving a bit farther. Use apps like Flipp or Reebee to find deals.
What’s Being Done?
The Competition Bureau has flagged property controls as a problem, but it has never successfully blocked a grocery merger. The 2024 Competition Act updates give the Bureau new powers starting in 2025, but experts say these clauses will remain a barrier unless specifically banned.
Political attention is growing. The federal government has criticized grocers for high prices, and further reforms are possible. But for now, these practices are legal.
Bottom Line
Your high grocery bill isn’t just about inflation. It’s also about corporate strategies that limit your choices. Property control clauses used by Loblaw, Sobeys, and others block competition for decades, keeping prices high.
What you can do: Report anti-competitive practices, support independent grocers, and tell your MP you want change. Until the law catches up, your best tool is awareness and action.
Source: The Walrus, “Is Loblaw Blocking a New Grocery Store in Your Neighbourhood?”