In a published statement earlier this week, Empire Company Ltd and its wholly-owned subsidiary Sobeys Inc. outlined its comprehensive approach to grocery-related property controls, which reflects the company’s ongoing commitment to a competitive and accessible grocery market for Canadians. The statement outlines Empire’s approach to restrictive covenants, exclusivity clauses and related governance practices.
While restrictive covenants and exclusivity clauses are common business tools that can encourage investment, support new developments and facilitate market entry, Empire acknowledged growing public and regulatory scrutiny and said it has worked closely with the Competition Bureau to refine its practices.
Under its long-term commitments, Empire will no longer enforce or register restrictive covenants on any properties, including those previously sold. The company will also stop enforcing exclusivity clauses on properties identified in the Competition Bureau’s June 2026 order, as well as those re-registered in Manitoba following Bill 31. In addition, Empire will not enforce or create radius clauses or exclusivity agreements that restrict specialty food retailers such as butchers and bakeries.
The company will continue reviewing requests to remove or waive existing property controls through a formal, principles-based process and will limit the geographic scope, product coverage and duration of exclusivity provisions in future grocery leases. Empire also plans to review existing agreements in communities where it is the sole grocery operator to identify opportunities for change. The company is encouraging other grocery retailers to adopt similar principles while continuing to work with regulators and governments to establish a clear, consistent national framework. Empire said its goal is to ensure Canadians continue to benefit from greater choice, value and access to grocery services.
Empire Company Ltd., 115 King St., Stellarton, Nova Scotia B0K 1S0 (902/752-8371 www.empireco.ca)