grocery stores ontario

Here are the new grocery chains Ontario could get to compete with Loblaws

Ontario's grocery store oligopoly may soon be a thing of the past now that Canada's minister of innovation, science and industry is set on bringing a new international chain into the mix — and with it, some welcome competition.

As residents have been labouring to keep up with food price increases that have endured for well over a year now, Minister François-Philippe Champagne has been trying to poach a new supermarket company to make a home here and help ease the hold that Loblaws, Metro and Sobey's have on the grocery sector.

As Canada's Competition Bureau said in a special report last summer, "Canada’s grocery industry is concentrated. Most Canadians buy groceries in stores owned by a handful of grocery giants."

The report added that our big three brands collectively brought in more than a staggering $100 billion in sales in 2022, amounting to record profits of more than $3.6 billion as prices facing consumers rose rapidly.

"In recent years, industry concentration has increased, and it has become more difficult than ever for businesses to enter, expand, and compete effectively... Canada needs solutions to help bring grocery prices in check. More competition is a key part of the answer."

Many are now wondering who this new competition could end up being if the government manages to convince anyone to make a foray into Canada — and how they plan to persuade them to do so.

While some shoppers may have been hoping to finally be able to experience the unique and beloved Trader Joe's product line, it seems per the Star that the California-based grocer doesn't have any plans to come north of the border.

Another contender could be Wegmans, also from the U.S., but the outlet reported that the brand likewise has "no immediate plans to come to Canada," though executives haven't completely ruled it out for the future.

The most realistic might be Aldi, which is already entrenched in markets across Europe, Australia, Asia and the U.S., and which would be most desirable due to its steeply discounted prices. France-based Carrefour is another option that Champagne has identified.

Other large overseas players that the public seems to think would be a welcome addition to the Canadian market are the U.K.'s Tesco or Sainsbury's, Australia's Coles, or Publix, Lidl and Kroger, all of which are huge in the U.S.

Lead photo by

@defotoberg/Shutterstock


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