Competition Bureau says it will be studying Canada’s grocery sector

Studying Canada’s Grocery Sector (CNW Group/Competition Bureau)

GATINEAU — The Competition Bureau is launching a study of grocery store competition in Canada. The study will examine various issues with the goal of recommending measures that governments can take to help improve competition in the sector.

With inflation on the rise, Canadian consumers have seen their purchasing power decline. This is especially true when buying groceries. In fact, grocery prices in Canada are increasing at the fastest rate seen in 40 years.

Many factors are thought to have impacted the price of food including extreme weather, higher input costs, Russia’s invasion of Ukraine, and supply chain disruptions. Are competition factors also at work? To find out, the Bureau will study this issue from now until June 2023.

The study will examine three main questions:

1. To what extent are higher grocery prices a result of changing competitive dynamics?
2. What can we learn from steps that other countries have taken to increase competition in the sector?
3. How can governments lower barriers to entry and expansion to stimulate competition for consumers?

Interested parties are invited to provide submissions to the Bureau on these questions and any other matters relevant to retail grocery competition in Canada. The deadline for submissions is December 16, 2022.

The study aims to provide an opportunity for the Bureau to highlight opportunities for change that can make it easier for new businesses to compete and innovate.