The Competition Bureau of Canada is launching a study into grocery store competition.
Announcing the move in a press release, the bureau says with inflation on the rise, Canadian consumers have seen their purchasing power decline.
Stats show that grocery prices have been increasing at the fastest rate seen in Canada in 40 years.
A number of factors are believed to play a role in the increase including extreme weather, higher input costs, Russia's invasion of Ukraine, and supply chain disruptions.
The Competition Bureau of Canada will study the issue from now until June 2023.
The study will be based around three main questions:
- To what extent are higher grocery prices a result of changing competitive dynamics?
- What can we learn from steps that other countries have taken to increase competition in the sector?
- How can governments lower barriers to entry and expansion to stimulate competition for consumers?
Interested parties are invited to provide submissions to the Competition Bureau of Canada on these questions and any other matters relevant to retail grocery competition in Canada.
The deadline for submissions is December 16, 2022.