Manitoba government taking Sobeys to municipal board over property controls

WINNIPEG – The Manitoba government is challenging property contracts held by Sobeys, claiming the grocery giant is making it more difficult for competitors to enter the market.

The government announced Thursday it’s bringing the issue to the province’s municipal board, after a law was passed last year prohibiting use of “restrictive covenants” in land sales that might prohibit a grocery store from opening close to an existing one.

“Each and every one of these predatory property controls is against public interest,” said Mintu Sandhu, minister of public service delivery.

“Because when we let a company like Sobeys block competition, it makes it easier for them to raise prices.”

Property controls at four Sobeys-owned locations across the province are going before the board, with the province hoping a decision is made within six to eight weeks. 

Premier Wab Kinew said all the big grocery chains dropped their property controls when the law passed — except Sobeys. 

Sandhu’s office has requested a meeting with the executive of Sobeys’ parent company, Empire, to discuss the issue. But the minister said he hasn’t heard back. 

Sobeys did not respond to a request for comment.

The province said Sobeys has 43 property controls that existed before legislative changes. One control extends into a nearby farmer’s field, and another is to remain in place for decades.

“So that means that there’s no competitor allowed to set up shop even in the farmer’s fields or even across the streets, a long ways away from where this grocer is actually doing business,” said Kinew. 

“At the end of the day, if this wasn’t benefiting the company’s bottom line, they wouldn’t be doing it.”

The issue of restrictive covenants has been raised by the federal Competition Bureau. Last year, the agency urged retailers and landlords to drop or change competitor property controls that are not justified. 

The bureau published a grocery market study in 2023, which found property controls can limit competition from new grocers and can deny consumers the benefits of competition. 

Recent figures from Statistics Canada suggest Manitoba’s inflation rate rose to three per cent last month compared to the same period in 2025. Food cost is one of the main drivers of inflationary pressure in the province. 

Kinew was questioned about whether removing property controls has contributed to lower food prices for families. 

“Obviously, if a property control gets struck down, competition isn’t going to rush in the following day. It’s going to take some time for the business case to be built and for a new tenant to set up shop,” he said.

“But over the long term, this will drive down grocery prices.”

This report by The Canadian Press was first published April 30, 2026.