Manitoba’s New Grocery Property Controls Miss the Mark, says CFIG

A group representing Canadian independent grocers says Manitoba’s approach to grocery property restrictions with its recent Property Controls for Grocery Stores and Supermarkets Act, which passed last June, has left the industry with a sour taste as the province announced it was challenging some of Sobeys’ anti-competition contracts earlier this week.

Manitoba bars grocery stores from creating new exclusivity clauses or restrictive covenants that can be used to prevent other grocery retailers from setting up shop nearby.

It’s a move the province said will increase competition and lower prices as a result.

The Canadian Federation of Independent Grocers said there shouldn’t be a “blanket prohibition” against property controls in the province and that independent grocers at any rate should be able to incorporate these types of provisions in their contracts.

Under the rule, property restrictions are voided unless they were registered by the December 2025 deadline. The law allows the province to challenge any of the registered contracts, referring them to the Manitoba Municipal Board for a hearing to decide if they’re in the public interest. The CFIG says the province should instead refer cases to the Competition Bureau Canada, which enforces federal laws meant to prevent anti-competitive practices. The province has said that property matters in Manitoba fall under the jurisdiction of the Municipal Board, and the board has the necessary resources and expertise to rule on the 43 property control cases brought forward by the government.

The CFIG feels there should have been a lot more consultation with industry before the law was passed. Most grocers don’t believe it will fundamentally change the competitive landscape and bring down prices.

Manitoba’s New Grocery Property Controls Miss the Mark, says CFIG

A group representing Canadian independent grocers says Manitoba’s approach to grocery property restrictions with its recent Property Controls for Grocery Stores and Supermarkets Act, which passed last June, has left the industry with a sour taste as the province announced it was challenging some of Sobeys’ anti-competition contracts earlier this week.

Manitoba bars grocery stores from creating new exclusivity clauses or restrictive covenants that can be used to prevent other grocery retailers from setting up shop nearby.

It’s a move the province said will increase competition and lower prices as a result.

The Canadian Federation of Independent Grocers said there shouldn’t be a “blanket prohibition” against property controls in the province and that independent grocers at any rate should be able to incorporate these types of provisions in their contracts.

Under the rule, property restrictions are voided unless they were registered by the December 2025 deadline. The law allows the province to challenge any of the registered contracts, referring them to the Manitoba Municipal Board for a hearing to decide if they’re in the public interest. The CFIG says the province should instead refer cases to the Competition Bureau Canada, which enforces federal laws meant to prevent anti-competitive practices. The province has said that property matters in Manitoba fall under the jurisdiction of the Municipal Board, and the board has the necessary resources and expertise to rule on the 43 property control cases brought forward by the government.

The CFIG feels there should have been a lot more consultation with industry before the law was passed. Most grocers don’t believe it will fundamentally change the competitive landscape and bring down prices.