Competition Bureau takes action to protect competition in the grocery industry in an Alberta community
January 16, 2025
The Competition Bureau has taken action to protect competition in the grocery industry in the Alberta community of Edson.
The Bureau has reached an agreement with Sobeys Inc. to sell its grocery store in Edson to a new, independent operator. The agreement will ensure that Edson residents continue to have access to a competitive grocery market.
The Bureau’s investigation found that Sobeys’ acquisition of the Safeway store in Edson in 2023 would have likely resulted in a substantial lessening of competition in the local grocery market. The store is the only full-service grocery store in Edson, and Sobeys’ acquisition would have given it a dominant position in the market.
The Bureau’s agreement with Sobeys requires the company to sell the Edson store to a new, independent operator no later than June 1, 2025. The agreement also includes a number of other conditions to ensure that the sale does not harm competition in the Edson grocery market.
“This agreement will protect competition in the Edson grocery market and ensure that residents continue to have access to a competitive choice of grocery stores,” said Matthew Boswell, Commissioner of Competition. “The Bureau will continue to monitor the grocery industry to ensure that competition is maintained.”
The Bureau’s investigation was part of its ongoing work to protect competition in the grocery industry. In recent years, the Bureau has taken action to address concerns about anti-competitive conduct in the grocery industry, including bid-rigging, price-fixing, and abuse of dominance.
Background
Edson is a town in west-central Alberta with a population of approximately 8,000 people. The town is served by two grocery stores: the Safeway store, which is owned by Sobeys Inc., and the Co-op Food Store.
In 2023, Sobeys Inc. acquired the Safeway store in Edson from Empire Company Limited. The Bureau’s investigation found that Sobeys’ acquisition of the Safeway store would have likely resulted in a substantial lessening of competition in the Edson grocery market.
The Bureau’s agreement with Sobeys requires the company to sell the Edson store to a new, independent operator no later than June 1, 2025. The agreement also includes a number of other conditions to ensure that the sale does not harm competition in the Edson grocery market.
Competition Bureau takes action to protect competition in the grocery industry in an Alberta community
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