CanadaB次元官网网址檚 grocery sector needs more competition to help keep food prices down and encourage new entrants, the countryB次元官网网址檚 competition watchdog has found.
In a highly anticipated study released Tuesday, the Competition Bureau said concentration in the grocery industry has increased in recent years with the largest grocers growing the amount they make on food sales.
Most Canadians buy groceries in stores owned by a handful of grocery giants, with CanadaB次元官网网址檚 three largest grocers B次元官网网址� Loblaws, Sobeys, and Metro B次元官网网址� collectively reporting more than $100 billion in sales and $3.6 billion in profits last year, the study found.
B次元官网网址淐anada needs solutions to help bring grocery prices in check,B次元官网网址� the study said. B次元官网网址淢ore competition is a key part of the answer.B次元官网网址�
The competition watchdog proposes four recommendations to improve competition and lower prices, including an innovation strategy to support new grocery businesses and expand consumer choice.
It also recommends governments encourage the growth of independent grocers and the entry of international grocers into the Canadian market, standardize unit pricing to help Canadians easily compare grocery prices, and limit real estate controls in the grocery industry that make it difficult B次元官网网址� or even impossible B次元官网网址� for new stores to open.
Meanwhile, the Bureau said it also needs to approach its work in the grocery industry with B次元官网网址渉eightened vigilance and scrutinyB次元官网网址� to ensure Canadians benefit from greater choice and more affordable groceries.
B次元官网网址淲e need to thoroughly and quickly investigate allegations of wrongdoing, and we need the power to act when issues arise,B次元官网网址� the study said.
The competition watchdog committed to taking steps to better promote competition in the Canadian grocery industry, including providing a pro-competitive perspective to support the implementation of CanadaB次元官网网址檚 grocery code of conduct.
It also committed to revisiting the findings of its study in three years to assess the progress on recommendations it has made to government.
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