OTTAWA — The Competition Bureau, an agency of the federal government, is launching a study of grocery store competition in Canada.
In an announcement Monday, it said this is not an investigation into specific allegations of wrongdoing, although if it finds evidence of illegal activity it will take appropriate action.
The bureau also cautioned that it has no power to compel grocers to provide information for the purpose of market studies.
The study, though, will examine various issues with the goal of recommending measures to government on how it might improve competition among companies.
Grocery prices in Canada are rising at the fastest pace in four decades.
The bureau noted various known factors including extreme weather, higher input costs, Russia's invasion of Ukraine, and supply chain disruptions.
It said it will spend the next eight months examining whether "competition factors" are also at work.
The study will seek answers to three principal questions:
- To what extent are higher grocery prices a result of changing competitive dynamics?
- What can be learned from steps that other countries have taken to increase competition in the grocery sector?
- How can governments lower barriers to entry and expansion to stimulate competition for consumers?
Interested parties are invited to provide submissions to the bureau by Dec. 16 on these questions and any other matters relevant to competition in the sector.
The Competition Bureau notes that the grocery sector in Canada is concentrated.
Many Canadians buy groceries from retail chains operated by one of three companies: Loblaws, Sobeys and Metro.
Other important retailers are Walmart and Costco.
The level of retail grocery competition varies from community to community, with Canadians in larger centres having a larger number of options than smaller towns.
When there is more choice among grocery stores, the bureau said, consumer prices tend to be lower.
