Rising prices prompt recommendations for increased competition in grocery sector

Grocery prices have increased at their fastest rate in more than 40 years, and Canadians are feeling the pinch.

The Competition Bureau publishes its market study report, Canada Needs More Grocery Competition, which recommends that all levels of Canadian government act to increase competition in the grocery industry.

The report highlights the findings of the Retail Grocery Market Study that the Bureau launched on October 24, 2022. It examines the state of competition in the grocery industry and identifies barriers to increasing competition. It also explores the potential for independent grocers, international grocers, and emerging business models to deliver more competition, innovation, and choice to Canadians.

The report makes four recommendations to governments to improve competition in the grocery industry:

• create a whole-of-government strategy to support the emergence of new types of grocery businesses;
• encourage the growth of independent grocers and the entry of international grocers;
• introduce accessible and harmonized unit pricing requirements to empower consumer choice; and
• limit the use of property controls that make it difficult for new grocery stores to open.

“As we have witnessed the highest cost-of-living increases seen in a generation, Canadians are recognizing the relationship between a lack of competition and rising prices. By acting now, governments at all levels can take steps towards creating a more competitive grocery industry. Competition can help lower prices and make life more affordable for Canadians,” said Matthew Boswell Commissioner of Competition.