Food Deserts Prompt California Effort to Scrap Grocery Covenants

April 15, 2026, 1:32 AM UTC

California lawmakers are taking aim at a grocery industry practice that blocks retailers from moving into old, shuttered food stores.

Grocery store owners can sometimes attach covenants to their properties prohibiting a store from being used to sell food for years after it closes.

Trade groups maintain this provides retailers with certainty when investing in a particular market, ensuring rivals won’t swoop in if a grocer closes a location.

Campaigners against hunger and some antitrust scholars contend the practice helps to create food deserts, leaving stores empty when a grocer departs a community and blocking other grocers from entering the ...

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