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CMA proposes to prevent Aldi and Lidl from blocking rival
supermarkets opening close to their stores
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Provisional decisions find that Aldi, Lidl GB and Lidl NI are
Large Grocery Retailers'
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CMA is seeking views before making a final
decision
Following a review, the Competition and Markets Authority (CMA)
has provisionally decided that Aldi, Lidl GB and Lidl NI should
be subject to rules set out in the Groceries Market Investigation
(Controlled Land) Order 2010, which already apply to the UK's
biggest supermarket chains.
The Order is designed to stop Large Grocery Retailers' (LGRs)
from using land agreements to make it harder for rival
supermarkets to open nearby in particular through the use of
restrictive covenants and exclusivity arrangements. The rules
ensure supermarkets compete freely and ultimately ensure shoppers
have more choice about where to buy, and how much to pay for,
their groceries.
The Order currently applies to seven retailers Asda, Coop, Marks
and Spencer, Morrisons, Sainsbury's, Tesco and
Waitrose.
Using set criteria, the CMA reviews which retailers should be
covered, and its provisional view is that Aldi, Lidl GB and Lidl
NI should now be covered by the Order because of the scale and
geographic coverage of their stores, their full range of
groceries and their procurement model.
The UK food and grocery market is worth an
estimated £215
billion and, according to various sources, Aldi and
Lidl's market shares rank them amongst the top 5
retailers.
Provisional findings
When the Order was made in 2010, Aldi's and Lidl's UK activities
were excluded from its scope as limited assortment discounters'
(LADs), selling a significantly more limited range of groceries
than the LGRs at a low price. Having reviewed the evidence on
their current operations, the CMA has provisionally found that
Aldi, Lidl GB and Lidl NI no longer qualify as LADs, and that
they are LGRs on the basis of the following criteria:
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Store footprint and geographic coverage: each operates larger
grocery stores those with a shopfloor area of more than 1,000
square metres throughout either Great Britain or Northern
Ireland
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Product range: each carries a full range of groceries, even
though they may offer less choice within some categories than
some existing LGRs
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Procurement model: each purchases groceries directly from
suppliers through an integrated grocery wholesaling
function
Before reaching a final decision, the CMA is seeking further
views on whether Aldi, Lidl GB and Lidl NI should be designated
as LGRs under the Order and therefore be subject to the land
agreement rules.
Juliette Enser, Executive Director of Competition Enforcement and
Markets at the CMA, said:
We want everyone to have the best choice of supermarket and range
of prices when buying their groceries. To ensure this happens, we
put rules in place to prevent big supermarket chains blocking
rival stores from opening nearby and now we propose applying
those rules to Aldi and Lidl too.
This is about allowing shoppers to choose where they spend their
money and levelling the playing field for all major supermarkets.
Today's proposals are provisional and we welcome views before
deciding the best way forward.
What happens next
No final decision has been made. The CMA is inviting stakeholders
to submit views on the provisional findings by 5pm onMonday 7
September 2026. It will consider those responses before final
decisions are reached in the autumn.
More information can be found on the case page.
Notes to editors
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The CMA's provisional decisions apply to Aldi Stores Ltd,
Lidl Great Britain Ltd (Lidl GB) and Lidl Northern Ireland
Ltd (Lidl NI).
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At the time of the Order, Lidl operated its UK business in a
UK-wide basis. Since then, its UK operations have been
restructured such that Lidl GB operates in Great Britain and
Lidl NI operates in Northern Ireland.
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The Order was introduced following findings by the CMA's
predecessor organisation, the Competition Commission, that
land agreements, including restrictive covenants and
exclusivity arrangements, could raise barriers to entry,
weaken competition and reduce consumer choice in highly
concentrated local markets.