Shoppers at a Sobeys grocery store in Toronto in June, 2023.Graeme Roy/The Canadian Press
The Manitoba government is challenging property contracts held by Sobeys EMP-A-T because it says the grocery giant is making it more difficult for competitors to enter the market.
Premier Wab Kinew says the matter is being brought to the province’s municipal board after his government passed a law last year that prohibits the use of “restrictive covenants” in land sales that might prohibit a grocery store from opening close to an existing one.
He says in some cases the grocer is leaving buildings vacant and contracts can extend to nearby properties.
The property controls at four locations across the province that are owned by Sobeys are being brought to the board.
The government says Sobeys has 43 property controls across the city, with one being in effect for decades into the future.
The Competition Bureau has urged retailers and landlords to drop or change competitor property controls that are not justified.