A greater number of players in the grocery sector would encourage lower prices, concludes a study published Tuesday by the Competition Bureau.
“Canada needs solutions to control the price of the grocery basket. Increasing competition is a key part of the solution,” reads the report titled Canada needs more competition in the grocery sector, a title that says a lot about the conclusions reached by the Competition Bureau. Currently, the industry is led by five major players in the country: Loblaw (Maxi, Provigo), Sobeys (IGA), Metro, Maxi and Costco.
Support the entry of new entrants into the supermarket industry, “promote the growth” of independent merchants, allow the entry of international players, set up a clear process for displaying the unit price and “ limiting the use of property controls that make it difficult to open new grocery stores” are among the main recommendations made to the federal government.
Faced with the constant increase in the grocery bill of consumers, the organization announced in October that it would scrutinize the rise in food prices and that it would examine the competition between the main retailers.
At the time of this announcement, several experts consulted had not hidden their skepticism. According to them, this study would have a “limited” scope.