5 takeaways from the Competition Bureau’s study into Canada’s grocery sector

Canada's competition watchdog released its much-awaited study into the country's retail grocery market, painting a picture of an industry dominated by few players.

Canada’s competition watchdog released its much-awaited study into the country’s retail grocery market on Tuesday, painting a picture of a highly concentrated industry dominated by few players.

Making an effort to detail its findings in “plain language,” the Competition Bureau highlighted the need to communicate clearly on the issue to promote transparency.

The bureau said most Canadians buy groceries in stores owned by giants Loblaw, Sobeys, and Metro, with rising prices signalling a need for more competition in the sector.

Here are five key takeaways from the report.

Among the four main recommendations contained in the report, the Competition Bureau called on provincial and territorial governments to consider introducing accessible and harmonized unit pricing requirements.

That would force grocers to display the price of a product based on a standard package size, alongside the total price. For instance, for two differently sized containers of apple juice, a store would have to disclose the total price, along with the price per 100 millilitres, to provide an apples-to-apples comparison.

Noting the difficulty consumers face when trying to compare prices on similar items between different stores, the bureau said the requirement would give shoppers more complete information about their options: “It serves as a quick and easy way to know if a consumer is getting the best deal _ without resorting to a calculator or mental math.”

Many grocery stores already display unit pricing, but Quebec is the only province or territory that requires it by law. The bureau said governments should consider whether the requirement is appropriate for all grocers, or just large chains due to the potential burden on smaller independents.