As food prices rise, many Canadians are questioning the dominance of large grocery retailers. Statistics Canada reported that as of July 2025, food prices had increased by 27.1% compared to July 2020. In contrast, the top three grocery chains in Canada reported profits of $3.6 billion in 2022, with total sales exceeding $100 billion.

The grocery market in Canada is heavily concentrated, with just five companies—Loblaw, Sobeys, Metro, Costco, and Walmart—controlling 76% of the market share. This concentration raises consumer concerns about pricing, labeling, and anti-competitive practices. Amid these issues, some Canadians are exploring alternative grocery models.

Examples of these alternatives include co-ops, non-profit stores, sliding-scale shops, and farmers' markets. In the U.S., New York mayoral candidate Zohran Mamdami has proposed city-owned grocery stores to provide affordable options in food deserts.

Spencer Osberg, a volunteer at The Grainery, a co-op in Halifax, has found a viable alternative to large grocery stores. The Grainery offers bulk, package-free, locally sourced, mostly organic food. Osberg noted that before joining the co-op, he accepted high grocery prices as a norm. "Since working at The Grainery, it's become clear that those prices are excessive and unnecessary," he said. He highlighted that organic quinoa at The Grainery costs about half of what it does at larger stores.

Osberg appreciates the community atmosphere at The Grainery, contrasting it with the impersonal experience at larger chains. "It's a different feeling when you come into the store than when you go to Sobeys or Superstore," he said. "Everyone's just kind of pushing their way through to get to the line and has other things on their mind."

Despite the potential for alternative grocery models, breaking into the Canadian food retail sector is challenging. A 2023 report from the Competition Bureau of Canada indicated that the concentration of ownership makes it difficult for new businesses to compete. Although there are approximately 6,900 independent grocery stores in Canada, they often struggle against the larger chains.

Mike von Massow, a professor at the University of Guelph, noted that smaller stores can succeed by focusing on niche markets, such as local or organic products. However, he acknowledged the difficulties of establishing a national chain of non-corporate stores. "It would be a very difficult and painful process to get established and to grow," he said.

Co-ops currently hold only 4% of the Canadian grocery market. Federated Co-operatives Limited operates a chain of co-op stores in Western Canada, but expansion into other regions faces logistical challenges. Von Massow explained that building a distribution network across Canada would be a significant hurdle.

Jon Steinman, owner of a grocery store in Nelson, B.C., emphasized the growing interest in co-ops. He noted that co-ops can be price competitive with mainstream grocers, but their appeal often lies in their community focus. "People are more and more looking for those alternatives," he said, referencing recent boycotts of certain products and stores.

Steinman believes co-ops could help lower food prices in the long run, similar to how organic co-ops in the 1970s made organic products more mainstream.

While The Grainery faces challenges, such as limited hours and occasional product shortages, Osberg remains optimistic about its future. He believes that community-owned alternatives can thrive despite the dominance of large grocery chains.