The Competition and Markets Authority (CMA) has provisionally decided that Aldi and Lidl should be covered by the same land agreement rules as other UK supermarkets. This would prevent them from adding restrictions to their land to stop competitors from opening stores nearby.
What is the Controlled Land Order?
The Controlled Land Order, introduced in 2010, currently applies to seven retailers: Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury's, Tesco and Waitrose. Aldi and Lidl were not included at the time as they were much smaller, but their market share has grown substantially in recent years.
According to recent industry data tracked by Worldpanel by Kantar, Aldi is the fourth-largest grocer in the UK with a 10.8% market share, while Lidl ranks sixth with an 8.8% share. Both stores have expanded through store openings: Aldi has around 1,050 stores with a long-term goal of 1,500 branches, while Lidl has more than 1,000 sites and recently announced plans to open 50 new sites in the next 12 months.
Proposal and next steps
In a provisional decision, the CMA said it believes Aldi, Lidl GB and Lidl NI should also be subject to the same rules as other supermarkets. Its proposals are under consultation until September 7, and a final decision is expected in the autumn.
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.”
An Aldi spokesperson 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.”
A Lidl spokesperson said: “We note the CMA’s provisional decision regarding our status under the Controlled Land Order. As a discounter, we have always welcomed and embraced competition within the market and our focus remains on continuing to open new stores and bringing our high-quality, lowest-priced groceries to even more communities. Any outcome will not impact our steadfast momentum and growth.”
