Feds reviewing dozen foreign grocers as candidates for Canadian market, mainly from Europe: reports

Ottawa has shortlisted 12 international grocers to compete with Canada’s big chains, according to a new report from the Wall Street Journal.

Through an access to information request, the paper found that the federal government has narrowed down a selection of foreign candidates to compete with grocers Loblaw, Metro and Sobeys. 

The list primarily includes European retailers based in Germany, Turkey, Spain, Portugal, Norway and The Netherlands. One U.S. grocer is in contention, WSJ reported.

In January, industry minister François-Philippe Champagne said he was in the process of courting a foreign grocer to the Canadian market.  

In a recent interview with Canadian Grocer on the topic of an international challenger, Sylvain Charlebois, professor of food distribution and policy at Dalhousie University, said the government should prioritize making Canada’s market more appealing to potential investors.

“Without addressing key issues such as supply chain inequalities, complex fiscal policies and interprovincial trade barriers, it’s unlikely that outside grocers would have chosen to enter Canada on their own,” Charlebois said. “Currently, the existing players in the market are well-established and have a deep understanding of the Canadian market dynamics. Therefore, until we address these challenges and create a more conducive environment, searching for alternative grocers is a futile exercise. In essence, Ottawa is effectively inviting external grocers to a banquet with no chefs in the kitchen.”