Ban Grocery Lease Exclusivity

Summary#

This bill aims to boost competition among grocery stores in Nova Scotia. It bans lease clauses and land-title rules that block competing stores, especially grocery stores and convenience stores that sell fresh produce. It also protects the government and others from lawsuits or payouts tied to these changes. The law would start on January 1, 2027.

• Makes all exclusivity clauses in commercial leases void, whether old or new.
• Voids land-title restrictions that stop a grocery store, supermarket, or a convenience store selling fresh produce from opening, whether old or new.
• Lets land registrars cancel or remove these blocked covenants from property records.
• Stops lawsuits and compensation claims related to the loss of these clauses or covenants.
• Takes effect January 1, 2027.

What it means for you#

• Shoppers

  • You may see more grocery options in malls, plazas, and downtown areas.
  • More competition could help with prices and give you more choice.
  • Convenience stores may carry more fresh fruits and vegetables.

• Small or independent grocers and convenience stores

  • Easier to find space to open, even near existing big stores.
  • Old rules on property titles can no longer block you from a site.
  • Plan for openings after January 1, 2027, when the changes take effect.

• Large grocery chains and current tenants with “exclusive” rights

  • You will lose exclusive rights in leases after January 1, 2027.
  • You could face new competitors in the same plaza or nearby.
  • You cannot claim compensation for losing exclusivity.

• Landlords and property owners

  • You can no longer offer or enforce exclusivity clauses in any commercial lease.
  • Old covenants that blocked grocery or fresh-produce convenience stores become void.
  • You may need to review and update lease forms and property listings.
  • You (or others) can ask the land registry to remove void covenants from the title.

• Real estate and leasing professionals

  • Update standard leases to remove exclusivity clauses.
  • Advise clients that covenants blocking grocery or fresh-produce convenience stores will not stand after January 1, 2027.

Expenses#

Estimated government cost: minimal administrative costs.

• No compensation or damages are allowed under the Act, so no payout costs to government.
• Some added work for land registries to cancel or discharge old covenants.
• Any price or rent changes would be borne by private parties, not the provincial budget.

Proponents' View#

• Ends “competitor block” rules that kept new grocers out of many sites.
• Should increase choice and make it easier for smaller or new grocers to open, including in underserved areas.
• More competition could help put downward pressure on food prices.
• Applying the change to old and new agreements creates a fast, province-wide fix.
• Letting registrars clear void covenants will clean up property records and reduce red tape.

Opponents' View#

• Overrides private contracts and property rights; businesses that paid for exclusivity lose it with no compensation.
• Could make it harder to attract anchor tenants to new plazas if they cannot get exclusivity, possibly raising rents or slowing new projects.
• The ban on “exclusivity clauses” applies to all commercial leases, not just grocery, which could have wider ripple effects.
• More stores nearby may not guarantee lower prices if large chains keep strong market power.
• Applying the change to existing agreements may create uncertainty until the 2027 start date.