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Experts: The government should strengthen competition in the domestic grocery sector rather than seeking experts from abroad.

Experts: The government should strengthen competition in the domestic grocery sector rather than seeking experts from abroad.

By Mounira Magdy

Published: February 2, 2024

Experts confirmed that instead of enticing a foreign grocer to come to Canada, Ottawa should look for ways to support small and regional grocery companies to enhance competition.

Industry Minister François-Philippe Champagne said this week that he is communicating with foreign grocery companies hoping they will come to Canada and help strengthen competition in the industry.

But Peter Chapman, founder of the consulting company SKUFood and former CEO of Loblaw, says it is not easy for a foreign chain to come to Canada.

The relatively small population and the country's dispersed geography make it difficult for companies to build a network of stores and distribution centers.

Chapman explained that there are already many small and regional grocery companies in Canada that the government can support in the name of competition, instead of reaching for the bigger fish across the border.

Gary Sands from the Canadian Federation of Independent Grocers agrees, adding that the grocery code of conduct being developed can help achieve a level playing field for small and medium-sized grocery companies.

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