Canada’s grocery sector needs more competition, federal watchdog finds

GATINEAU, Que. –

Canada’s grocery sector wants extra competitors to assist preserve meals costs down and encourage new entrants, the nation’s competitors watchdog has discovered.

In a extremely anticipated examine launched Tuesday, the Competition Bureau mentioned focus within the grocery business has elevated in recent times with the biggest grocers rising the quantity they make on meals gross sales.

Most Canadians purchase groceries in shops owned by a handful of grocery giants, with Canada’s three largest grocers — Loblaws, Sobeys, and Metro — collectively reporting greater than $100 billion in gross sales and $3.6 billion in earnings final 12 months, the examine discovered.

“Canada needs solutions to help bring grocery prices in check,” the examine mentioned. “More competition is a key part of the answer.”

The competitors watchdog proposes 4 suggestions to enhance competitors and decrease costs, together with an innovation technique to assist new grocery companies and broaden shopper selection.

It additionally recommends governments encourage the expansion of unbiased grocers and the entry of worldwide grocers into the Canadian market, standardize unit pricing to assist Canadians simply evaluate grocery costs, and restrict actual property controls within the grocery business that make it tough — and even not possible — for brand new shops to open.

Meanwhile, the Bureau mentioned it additionally must method its work within the grocery business with “heightened vigilance and scrutiny” to make sure Canadians profit from higher selection and extra reasonably priced groceries.

“We need to thoroughly and quickly investigate allegations of wrongdoing, and we need the power to act when issues arise,” the examine mentioned.

The competitors watchdog dedicated to taking steps to higher promote competitors within the Canadian grocery business, together with offering a pro-competitive perspective to assist the implementation of Canada’s grocery code of conduct.

It additionally dedicated to revisiting the findings of its examine in three years to evaluate the progress on suggestions it has made to authorities.

This report by The Canadian Press was first printed June 27, 2023.