This is simply the result of Canadian cities with overly anti-small business policies. The fact that you can't just run a business anywhere, or that you require to have a license from the municipal/city, or even have a permit for a sign out on the street, have a permit for x style of signage, etc. all for the sake of the look-and-feel of a city... is anti-business. It puts barriers in front of lower budget mom/pop stores.
Go out of North America, and you'll see that when overbearing policies are removed, small businesses thrive, cost of goods go down , and more variety are available to the consumer.
This extends beyond just the grocery market.