Competition Bureau reaches deal with Empire to end property control in Alberta town

The Competition Bureau has reached a deal with Empire Co. Ltd. to remove a property control that the regulator says restricted grocery store competition in Crowsnest Pass, Alta.

Empire's IGA store is the only grocery store in the town.

The regulator says its investigation found a property control restriction protected the store from competition and ensured it would continue to be the only grocery store in the area.

It's not clear how the company had that type of control and in what context.

The bureau says the agreement Thursday means a competitor can now move forward with plans to open a second grocery store in Crowsnest Pass.

Empire is the parent company of Sobeys Inc., which operates 1,600 stores across Canada under several banners including Sobeys, Safeway, IGA, FreshCo, Foodland, Longos, Farm Boy, Thrifty Foods, Les Marches Tradition and Marche BoniChoix.

The bureau says its investigations into the use of property controls by the parent companies of Sobeys and Loblaws are ongoing.

The mayor of Crowsnest Pass, Blair Painter, said he was surprised to learn the Competition Bureau had been investigating, but added he welcomes the potential for more grocery stores in the area.

"The competition should be dictated by what the marketplace will bear, not by someone that has covenants on a particular industry," he said.