Opinion: Alberta can lower food prices by banning supermarket property controls

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Food affordability is a top concern for consumers. Canada’s Food Price Report forecasts that in 2026 food prices will rise nationally by four to six per cent.

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In Alberta, food prices are expected to rise more than the national average. This prediction is troubling considering that the Canadian Income Survey shows Alberta, of all the provinces, to have the highest proportion of people (30.9 per cent) living in food-insecure households.

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These households have insufficient or uncertain access to food due to a lack of money. They will be further stressed financially by rising food prices, among other rising costs of living. The province is investing $5 million in food-security funding to support food banks, despite these charitable food-distribution systems being an ineffective response to food insecurity.

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To help support Albertans, the government should consider a no-cost initiative to counter the inflationary pressures on food prices. It can stop unfair grocery market competition, which is a factor in the rising cost of groceries. Most Canadians buy groceries in stores owned by a small number of grocery giants. These conglomerates keep competition low and food prices high using property controls.

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Registered on a property’s title, a restrictive covenant can prevent a competing grocery store, bakery, butcher, greengrocer or specialty food store that sells competing products from opening after a grocery store closes. A grocery giant can also buy property and apply a restrictive covenant to the property’s title to prevent competing grocers from opening on it.

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Property controls have restricted food access in several locations in Edmonton. A restrictive covenant in Griesbach imposed by Sobeys means that the neighbourhood, which is anticipated to have approximately 14,000 citizens upon its completion, may never have a grocery store. A restrictive covenant also exists on the site of a former Safeway in Highlands. In both neighbourhoods, residents without vehicles lack accessible and affordable grocery options within walking distance.

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The Competition Bureau supports the need for more grocery competition to decrease food costs and increase consumer access to independent grocers. The Competition Bureau investigates breaches of the Competition Act, that is, anti-competitive behaviour that hurts marketplace competition. The Competition Act was recently amended to prohibit companies from forming agreements that significantly restrict or reduce competition. More competition could reduce grocery prices.