Loblaw Companies Ltd. | Health Data Privacy Assessment at Loblaw Companies Ltd.

Status
Filed
AGM date
Previous AGM date
Resolution details
Company ticker
L
Lead filer
B.C. General Employees' Union (BCGEU)
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Public health
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
Canada
Resolved clause
Shareholders request that the Board of Directors of Loblaw Companies Limited publicly disclose, at reasonable cost and excluding proprietary information, the Company’s progress toward ending property controls, including:
• How many properties currently retain property controls and timeline for ending remaining controls; and
• Clarify the Company’s approach to property controls where Loblaw is the beneficial owner or co-owner of real estate assets,
including who leases are with and when controls will be eliminated. This analysis should clarify if and how the Strategic Alliance Agreement between Loblaw and Choice Properties impacts ending property controls. This reasonable proposal could help shareholders evaluate whether current practices effectively manage risk and are aligned with regulatory and consumer expectations and long-term value creation. We encourage investors to vote in favour of this resolution.
Supporting statement
Food affordability is a critical economic and social issue in Canada. Historic spikes in food prices are placing sustained pressure on household budgets. Recent polling demonstrates food affordability is the top concern for Canadians1 and Canada’s Food Price Report forecasts food prices will rise four to six per cent in 2026.2 Loblaw Companies Limited, as Canada’s largest food retailer, serves millions across more than 2,400 stores through banners including Loblaws, No Frills, and Real Canadian Superstore. In recent years the Company has faced heightened regulatory, legal, and reputational scrutiny related to alleged anti-competitive practices and food price inflation. Loblaw has also faced scrutiny for its use of property controls which, according to the Competition Bureau, can deny consumers the benefits of competition including lower prices, greater choice, and innovation. Controls include use of restrictive covenants and exclusivity clauses which limit what businesses may operate on certain properties, what competitors are able to sell, or prevent competing grocers from opening altogether. Restrictive covenants are also applied to title to exclude future competitors. According to a CBC Marketplace investigation, Loblaw has barred competitors within five kilometres of any property the landlord owns and barred a dollar store from selling big brands as loss leaders.3 In 2024, the Bureau obtained court orders to advance investigations into property controls, including into Loblaw, signalling material regulatory risk and potential future enforcement action or legislative change.4 Manitoba enacted legislation requiring grocery companies to register property controls5 and removed property controls including some belonging to Loblaw.6 Alberta is considering similar legislation.7 In 2025, Loblaw committed to ending property controls stating it would place no covenants on properties it sells, release covenants on properties previously sold, and limit the scope and duration of store lease exclusivity clauses where it is the leaseholder. Loblaw has reportedly only removed controls on 150 properties and has indicated its commitment to eliminate more is contingent on other grocery retailers following suit. Investors are concerned that Loblaw’s commitment effectively limits rather than eliminates lease exclusivity, and that its commitment lacks specificity, clear timelines, and fails to disclose the Company’s approach where it is the beneficial owner or co-owner of real estate assets such as through Choice Properties.
1 https://www.ctvnews.ca/canada/article/a-punch-in-the-gut-why-food-costs-have-become-canadians-top-worry/
2 https://cdn.dal.ca/content/dam/dalhousie/pdf/sites/agri-food/FINAL%20E%20low.res%20DAL_PRICE_REPORT_2026.pdf
3 https://www.cbc.ca/news/canada/grocery-giants-control-9.7055067
4 https://www.canada.ca/en/competition-bureau/news/2024/06/competition-bureau-advances-investigations-into-sobeys-and-loblaws-use-of-property-controls.html
5 https://www.cbc.ca/news/canada/grocery-giants-control-9.7055067
6 https://news.gov.mb.ca/news/index.html?item=71917
7 https://web2.gov.mb.ca/bills/43-2/b031e.php

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