Governments must act to bring more grocers into the Canadian market, argues a new Competition Bureau report examining concentration in the sector.
The investigation, which arose in response to surging inflation at the grocery store last fall, ties higher prices to a lack of competition in the Canadian grocery industry.
The independent consumer watchdog recommends all levels of government encourage the entry of new homegrown grocers into the market and seek ways to lure international brands to the country.
The report also includes recommendations to standardize packaging units and to limit property controls used to prevent new grocers from opening up shop.
“As we have witnessed the highest cost-of-living increases seen in a generation, Canadians are recognizing the relationship between a lack of competition and rising prices,” said Competition Bureau commissioner Matthew Boswell in a statement.
“By acting now, governments at all levels can take steps towards creating a more competitive grocery industry. Competition can help lower prices and make life more affordable for Canadians.”
More to come.
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