Edmonton Council Moves to Boost Grocery Store Competition Amid Rising Food Prices

Marcus Wong, Economy & Markets Analyst (Toronto)
5 Min Read
⏱️ 4 min read

In a bid to tackle the escalating costs of groceries and enhance local food accessibility, Edmonton city council has approved a motion aimed at dismantling restrictive covenants that have historically limited competition among grocery retailers. These legally binding agreements have often served to inhibit the establishment of new grocery stores in various neighbourhoods across the city, exacerbating issues of food deserts and accessibility for residents.

Addressing Food Deserts in Edmonton

Mayor Andrew Knack expressed the urgency of the motion, highlighting the detrimental impact of restrictive covenants on communities lacking easy access to grocery stores. “Food deserts are a real thing,” Knack stated. “There are communities that have not had the opportunity to have a local grocery store, in some cases, for decades because of the way the rules and these covenants have been designed.”

The council’s discussion brought to light the experiences of residents, particularly in older parts of the city, who face challenges in accessing fresh produce and essential groceries. City councillor Ashley Salvador remarked, “(It) leaves a lot of communities without access to fresh, healthy food and really creates food deserts.”

In some instances, even when a grocery store vacates a location, the covenant can prevent any new grocer from setting up shop in its place, leaving neighbourhoods with limited options.

The Need for Change

A notable example includes the Lansdowne Centre strip mall in south Edmonton, where a grocery store’s departure left a vacant space for over a decade. Current tenants, such as a thrift store, occupy the site, limiting the potential for a new grocery outlet. Councillor Michael Janz observed, “I don’t think Find is gonna pack up overnight and move, but greater housing density in the area and the future opening of the Stollery Children’s Hospital could spark renewed interest in utilising that space for grocery retail.”

The Need for Change

Janz has proposed that the city take steps to advocate for provincial action to eliminate these restrictive covenants, thus fostering a more competitive grocery market. He noted that while the city can’t change these rules itself, it can push for necessary reforms at the provincial level.

Looking to Manitoba for Inspiration

The conversation surrounding this issue gained momentum following Manitoba’s recent legislative changes, which resulted in the removal of 23 grocery property controls. Mayor Knack underscored the broader implications for Alberta, stating, “I think there is an opportunity to say that this really isn’t helping the vast majority of Albertans. So this isn’t an Edmonton-only thing, this is an Alberta-wide thing and I hope there’s a way to make some progress.”

City councillors have recently engaged with major grocery chains to discuss potential changes. While businesses typically resist giving competitors an advantage, Janz noted that the current economic climate has prompted retailers to reconsider the relevance of restrictive covenants. “They were interested in making changes here, but they want to do so in a way knowing that everybody else will as well,” he explained.

Provincial Response and Historical Context

Red Tape Reduction Minister Dale Nally indicated that the provincial government has been monitoring the developments in Manitoba and is considering similar changes for Alberta. The roots of restrictive covenants in Edmonton can be traced back over 100 years, affecting not only commercial properties but also residential zones.

Provincial Response and Historical Context

The Glenora neighbourhood, for example, established in the early 1900s, was subject to a covenant that limited land use to single-family homes. This historical precedent illustrates how these agreements have shaped Edmonton’s development and planning, often with unintended consequences for modern residents.

Why it Matters

The motion passed by Edmonton city council represents a significant stride towards enhancing food accessibility and affordability for its residents. By advocating for the removal of restrictive covenants, the city aims to foster a more competitive grocery market, ultimately benefiting consumers facing rising food costs. The changes proposed could lead to more diverse options for groceries, directly impacting community health and wellbeing. In a time when many are grappling with increased living expenses, this initiative may play a crucial role in alleviating the burden of food insecurity in Edmonton.

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