The Competitors Bureau says it is investigating the usage of property clauses, which restrict how actual property can be utilized by opponents, within the Canadian grocery sector.
Watchdog says clauses make it tougher for brand new supermarkets to open
The Competitors Bureau says it is investigating the usage of restrictive actual property clauses within the Canadian grocery sector.
Deputy commissioner Anthony Durocher advised a Home of Commons committee finding out meals costs that these measures, typically referred to as “property controls,” is usually a main barrier to entry and enlargement within the Canadian market.
Within the Bureau’s June 2023 report on competitors in grocery it described property controls as clauses added to a lease or deed that restrict how actual property can be utilized by opponents.
This may embody limiting the sorts of shops that may open in a mall, or limiting the form of retailer that is allowed to open in that location after a tenant leaves the property.
For instance, if a grocery retailer is shifting to a close-by location, the property management clause might stop a competitor from coming into the previous retailer.
The Bureau’s report advisable that governments restrict use of the clauses within the sector, saying they make it tougher for brand new supermarkets to open, and might curb competitors.
