The Hidden Real Estate Tactic Driving Up Grocery Prices

Industry concentration, supply problems and the war in Iran are all contributing to ever-escalating grocery prices for Canadians, but there’s also a serious anti-competitive issue behind them: restrictive real-estate covenants.These secretive real-estate deals, signed by Loblaws, Sobeys and others when they open stores, are keeping competitors away and funnelling consumers toward existing stores. They’re prevalent across Canada and, in some cases, their terms are egregious – would you believe that Loblaw’s typically blocks billiard halls from malls?Once used to prevent specific minorities from living in certain areas, grocery chains have discovered and deployed these restrictive covenants to great effect, which why is the Competition Bureau is now investigating them and Manitoba has banned them. Jacob Filipp, a marketing professional in Toronto, began unearthing and tracking these contracts after discovering how they drive up grocery prices. He maintains a definitive and growing database on his website as something of a hobby and a public service.He joins Do Not Pass Go this week to explain restrictive covenants and how grocery chains are using them to drive up prices for Canadians.Do Not Pass Go is a reader-supported publication. To receive new posts and support my work, consider becoming a paid subscriber. Get full access to Do Not Pass Go at www.donotpassgo.ca/subscribe