More grocery competition needed, federal watchdog finds

GATINEAU, Que. –

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

In a extremely anticipated research launched Tuesday, the Competition Bureau says focus within the grocery trade has elevated in recent times with the biggest grocers growing the quantity they make on meals gross sales.

It says 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 income final yr.

The research says Canada wants options to assist convey grocery costs in test and extra competitors is a key a part of the reply.

It proposes 4 suggestions to enhance competitors and decrease costs, together with an innovation technique to help new grocery companies and develop client selection.

The competitors watchdog additionally recommends governments encourage the expansion of unbiased grocers and the entry of worldwide grocers into the Canadian market, contemplate introducing accessible and harmonized unit pricing necessities to assist Canadians evaluate grocery costs and take measures to restrict property controls within the grocery trade.

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