Lorne Gunter: Protectionist Canadian regulations drive up consumer costs, lower productivity
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This week, Canada’s largest grocery retailer, Loblaws, announced it would eliminate property restrictions in its leases with landlords.
“Wow, Lorne,” you say. “Thanks for that fascinating glimpse into the scintillating world of commercial real estate.”
Actually, the move could mean more competition in the grocery business and lower prices for shoppers.
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Loblaws includes property restrictions in the leases it negotiates to prevent landlords who want a Loblaws (or one of its other brands like Superstore, City Market and No Frills) from leasing a site to another grocery chain within a fairly large radius.
It’s a deliberate attempt to limit competition by a retailer that already controls about 30 per cent of grocery marketing in Canada. For reference, Walmart is the largest grocery retailer in the U.S. and it controls around 20 per cent of that market.
But........
© Edmonton Journal
