Imagine a 42,000-square-foot void sitting smack dab in the middle of a bustling city—a glaring reminder of missed opportunities and stifled competition. That’s the reality in Brandon, Manitoba, where a prime retail space has been gathering dust since 2017. But here’s where it gets controversial: despite new provincial legislation aimed at boosting competition in the grocery industry, this space remains empty, thanks to a lease agreement that locks out potential rivals until 2028. And this is the part most people miss: the grocery chain Sobeys, which moved across the street, is still footing the bill for this unused property—and shoppers like you might be indirectly paying for it through higher prices.
The story begins in 2017 when Sobeys relocated to a new spot just across 18th Street, one of Brandon’s busiest thoroughfares. Yet, they’ve held onto their original lease with Winnipeg-based Shindico, effectively preventing any other food retailer from setting up shop there. Is this a strategic move to keep competitors at bay, or simply a business decision with unintended consequences? City Councillor Jason Splett (Ward 8) isn’t mincing words: “I definitely would like to see a business open in that spot shortly, for sure.” He suspects Sobeys is deliberately keeping the space vacant to stifle competition, a claim that has sparked heated debates among locals.
For residents like Beth Brown, who travels from Deloraine (about 85 kilometers southwest of Brandon) for her “big grocery buys,” the empty space is a missed opportunity. “A No Frills or anything discounted would be great,” she says, echoing the sentiment of many who feel a budget-friendly option is sorely lacking. Meanwhile, Brandonite Charlie Muller wonders if shoppers are indirectly subsidizing this vacant property through their grocery bills—a thought-provoking question that highlights the broader implications of such lease agreements.
Manitoba’s NDP government has taken notice, enacting the Property Controls for Grocery Stores and Supermarkets Act to prevent grocery chains from blocking competition through restrictive leases. The law bans new real estate deals that prevent similar stores from opening nearby, but it doesn’t retroactively affect existing agreements like Sobeys’. Is this legislation enough, or does it fall short in addressing the root of the problem? Provincial Minister Glen Simard is clear: “This is an opportunity to send a message that we’re serious about competition driving down prices.”
After the act’s passage last June, stores had six months to apply for exemptions if they believed their property controls should remain. Over 40 companies did so, including Walmart, five FreshCo locations, and 38 Sobeys stores. Notably, Loblaws withdrew its exemption requests, a move that has raised eyebrows. Simard vows to challenge existing agreements, but for Brandon’s empty Sobeys location, the damage is already done—its lease predates the new law.
While Brandon residents have six major grocery options—two Sobeys stores, a Safeway, a Superstore, a Walmart, and a Co-op—Councillor Splett remains firm: “The win is when a business moves into there and opens shop.” Security patrols circling the vacant space are a poor substitute for the economic vitality a new store could bring.
So, here’s the burning question: Are restrictive leases like Sobeys’ a necessary business strategy, or a barrier to fair competition? And what does this mean for consumers who may be paying more as a result? Share your thoughts in the comments—let’s spark a conversation that could shape the future of grocery retail in Manitoba.
