Britain’s competition regulator is seeking to widen the rules governing supermarket expansion, proposing that Aldi and Lidl be brought under long-standing restrictions designed to prevent large grocery chains from blocking rivals from opening nearby.
In provisional findings published on Thursday, the Competition and Markets Authority (CMA) said the rapid growth of the two German discounters means they should now be subject to the same land agreement rules that already apply to Britain’s biggest supermarket groups.
The restrictions, introduced in 2010, prevent major grocers from using restrictive covenants and exclusivity clauses in land agreements that could stop competing supermarkets from establishing stores in the same area.
Until now, the rules have applied to Asda, Co-op, Marks & Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose.
The CMA believes Aldi, Lidl GB and Lidl Northern Ireland have now reached a scale where excluding them from the regime is no longer justified. Both retailers have significantly expanded their estates over the past decade, moving beyond their original discount formats with larger stores and broader product ranges that compete directly with established supermarket chains.
The proposal reflects the transformation of Britain’s grocery market, where Aldi has grown into the country’s fourth-largest supermarket with a 10.8 per cent market share, while Lidl has secured 8.8 per cent, according to Worldpanel data. Their expansion has intensified competition across the sector, forcing traditional rivals to respond with lower prices and broader value ranges.
The CMA said extending the rules would help preserve competition in local grocery markets by preventing any major retailer from restricting consumer choice through property agreements.
Juliette Enser, the regulator’s executive director of competition enforcement and markets, said the objective was to ensure shoppers continued to benefit from greater choice and competitive pricing. The watchdog is consulting on its provisional findings before reaching a final decision.
Aldi said the proposal would have no impact on its long-term expansion strategy. The retailer said it remained committed to opening hundreds of additional UK stores, underlining its confidence that demand for discount grocery shopping continues to support further investment despite increased regulatory scrutiny.
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