The UK's competition watchdog has provisionally proposed that Aldi and Lidl should be subject to the same land agreement rules as the country's largest supermarket chains. The Competition and Markets Authority (CMA) says the discount retailers should no longer be able to block rival supermarkets from opening stores close to their own.
Rules introduced in 2010
The rules, introduced in 2010, currently apply to seven retailers: Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury's, Tesco and Waitrose. They are designed to prevent large grocery retailers from using land agreements to hinder competitors from opening nearby stores.
In its provisional decision, the CMA stated it believes Aldi, Lidl GB and Lidl NI should also be covered by these restrictions. Aldi is the UK's fourth largest grocer with a 10.8% market share, while Lidl is the sixth largest with an 8.8% share, according to recent Worldpanel figures.
Expansion and product range
Both companies have expanded rapidly through new store openings in recent years and have attracted shoppers with their discount pricing. The regulator noted that the brands were not originally included due to their more limited product range, but their expansion and larger stores mean they should now be subject to the rules.
The CMA is seeking further views before reaching a final decision. 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.”
She added: “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.”
Response from Aldi
An Aldi spokesman said: “The CMA’s provisional decision does not impact our long-term growth plans across the UK. We remain firmly committed to opening hundreds of new stores across the country, bringing Aldi’s unbeatable value and award-winning quality to even more customers.”
Lidl has been contacted for comment.
