Loblaw Announces Intention to Collaborate with Grocery Industry to Eliminate Property Controls
Canada’s largest grocery store chain has announced its intention to remove commercial property restrictions within the grocery industry.
Company spokesperson Catherine Thomas stated that Loblaw is prepared to discontinue the use of covenants in their commercial leases, which impose limitations on other tenants and their operations.
However, she emphasized that Loblaw is urging the entire grocery sector to follow suit.
The Competition Bureau is currently investigating Loblaw and Sobeys for their utilization of property controls in the grocery market, noting that these restrictions are inhibiting competition.
In February, the bureau disclosed its investigation, with deputy commissioner Anthony Durocher stating that property controls pose obstacles for both independent grocers and larger chains, as well as for foreign retailers wanting to enter the Canadian market.
Thomas acknowledged that property controls have been in place for many years as a means of encouraging development, but she also recognized that they might limit options for consumers.
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