While selecting meat deals, Amy Crossley reflected on the high cost of groceries, especially for families with young children to feed. Crossley, who shops at Gateway Meat Market in Dartmouth, N.S., shared her concern about the monthly expenses, noting that even for her and her partner, the bill reaches $500 at a regular store.
Gateway Meat Market, a popular independent store known for its specials, has garnered a loyal following, with customers like Crossley advocating for more affordable family-run stores like it.
An ongoing investigation by the Competition Bureau Canada since last year is examining the use of property controls by major grocers, such as Sobeys and Loblaw, in the Halifax Regional Municipality. Property controls, including restrictive covenants and exclusivity clauses, can hinder competition and limit the entry of new players into the market.
The bureau’s focus on Halifax stems from concerns about the impact of property controls on smaller competitors, emphasizing the importance of fostering a more competitive marketplace to benefit consumers.
Despite some grocers’ commitments to eliminating property controls, CBC’s findings reveal that many grocery properties in the Halifax area still have such restrictions in place, potentially impeding competition and innovation in the industry.
Experts, like James Baxter from Dalhousie University, highlight the challenges faced by independent grocers in finding suitable commercial spaces for expansion, underscoring the need to address property controls to promote a more level playing field in the grocery sector.
The investigation’s scope includes examining the market dominance of major grocers like Sobeys and Loblaws, with court orders requiring these companies to disclose information related to property controls, leases, and development plans.
The debate around property controls continues, with differing views on their impact on food prices and market dynamics. While efforts are being made to address these issues, concerns persist about the long-term effects of property controls on competition and consumer choice in the grocery industry.
As calls for greater transparency and competition in the grocery sector grow, the role of property controls in shaping market dynamics remains a topic of ongoing scrutiny and debate.
