UK regulator wants Aldi and Lidl bound by same land rules as big grocers

Britain's competition regulator has proposed that discount supermarket chains Aldi and Lidl be brought under the same land agreement restrictions that currently apply to seven major grocers. The Competition and Markets Authority (CMA) said on Friday that extending the rules would help ensure shoppers have the widest possible choice of where to buy groceries.

The order in question is designed to prevent supermarket groups from using land agreements—such as restrictive covenants and exclusivity clauses—that can block rival grocers from opening stores nearby. At present, the order applies to Tesco, Sainsbury's, Asda, Morrisons, the Co-op, Marks & Spencer, and Waitrose, but not to Aldi and Lidl.

The CMA said its provisional view is that Aldi and Lidl should now be covered because of the scale and geographic reach of their store networks, their full range of groceries, and their procurement model. Aldi is Britain's fourth largest grocer, while Lidl is fifth.

"This is about allowing shoppers to choose where they spend their money and levelling the playing field for all major supermarkets," said Juliette Enser, executive director of competition enforcement and markets at the CMA.

Before making a final decision, the CMA will seek further views on whether Aldi and Lidl should be designated as "Large Grocery Retailers" under the order. Stakeholders have until September 7 to submit their views, and the CMA expects to make a final decision in the autumn.

Both discounters responded to the proposal. An Aldi spokesperson said the move would not impact its long-term UK expansion plans, adding: "We remain firmly committed to opening hundreds of new stores across the country." A Lidl spokesperson said the group welcomed competition and that "any outcome will not impact our steadfast momentum and growth."