Loblaw says it will join grocery industry in ending property checks – BNN Bloomberg

On By Karl

Company News

With Rosa Saba, Canadian Press

Jay Strosberg, managing partner of Strosberg Wingfield Sasso LLP, joins BNN Bloomberg to discuss the landmark $500 million deal reached with George Weston and Loblaw.

Canada’s largest grocer says it wants to eliminate commercial ownership controls in the grocery industry.

Loblaw is willing to stop using agreements, which are commercial lease terms that impose restrictions on other tenants and their activities, spokeswoman Catherine Thomas said.

But he says the company is calling on the entire food industry to do the same.

The Competition Bureau is currently investigating Loblaw and Sobeys’ use of ownership controls in the grocery industry and has said these controls hinder competition.

The bureau announced its investigation in February, and deputy commissioner Anthony Durocher said property checks could be a hindrance to both independent grocers and large chains, as well as foreign grocers seeking to enter the country.

Thomas says property controls have been used for decades as a way to encourage development, but they can also reduce consumers’ choices.

This report by The Canadian Press was first published Oct. 30, 2024.