GATINEAU, Que. — Canada’s competition watchdog is expected to release a study today examining whether consolidation in the grocery sector is contributing to rising food costs.
The Competition Bureau announced the study last fall as grocery prices rose at the fastest pace in 40 years.
It said the study would examine three broad questions: how grocery sector competition affects prices, what Canada can learn from other countries that have taken steps to increase competition and how governments can lower barriers to entry and expansion in the sector.
Many Canadians buy groceries from retail chains operated by one of three companies: Loblaws, Sobeys, and Metro.
Other important retailers include Costco and Walmart, as well as independent grocers.
The Competition Bureau says when consumers have more choices between grocery stores, they are likely to pay lower prices, gain greater convenience and be served by higher levels of innovation.
This report by The Canadian Press was first published June 27, 2023.
Companies in this story: (TSX:L), (TSX:EMP.A), (TSX:MRU).
The Canadian Press
