Empire to drop some property control measures
Empire Company Ltd., the parent company of Sobeys, said it will no longer enforce restrictive covenants.
In a statement released Tuesday (July 21), the food and pharmacy retailer committed to not enforcing or applying the property control measure on any of its properties, including those previously sold.
Empire also said it will not enforce exclusivity clauses on the properties identified in the June 2026 order by the Competition Bureau and those re-registered in Manitoba following the passage of Bill 31.
READ: Manitoba government taking Sobeys to municipal board over property controls
It will also not enforce or enter into any radius clauses.
Empire committed to not enforcing or entering into exclusivity clauses restricting specialty food retailers, such as butchers or bakeries, that sell only a subset of the products typically sold by a grocery store.
“Empire Company Limited’s comprehensive approach to property controls reflects its ongoing commitment to a competitive and accessible grocery market for Canadians,” the company said.
Empire said property controls, including restrictive covenants and exclusivity clauses, are used across industries and “enable market entry and sustain developments, particularly in underserved communities.”
“While these arrangements are not inherently anti-competitive, we recognize the increased scrutiny in this area and the importance of ensuring they are used appropriately. We have engaged constructively with various stakeholders, including the Competition Bureau, and that dialogue has helped inform our ongoing practices in this area,” Empire said.
Empire said it will limit the geography, product scope and duration of exclusivity provisions in all of its future grocery store leases across Canada.
Moving forward, Empire will identify opportunities to remove or modify existing property controls where one of its banners is the only grocery store in a community.
The company said it will maintain “a formal, consistent and principles-driven approach to reviewing and responding to property control waiver and removal requests,” in addition to working with the Competition Bureau and all levels of government.
Empire encouraged “all grocery industry participants to adopt similar principles to support a consistent and balanced approach.”
Both Loblaw Companies Ltd. and Walmart Canada have made commitments to remove some or all property controls.
The Competition Bureau has probed both Loblaw and Empire for their use of property controls.
