Highlights
- Aldi, Lidl GB and Lidl NI have been designated as Large Grocery Retailers under the Groceries Market Investigation (Controlled Land) Order 2010.
- The rules aim to stop supermarkets using restrictive land agreements to prevent rivals from opening nearby.
- The CMA said the designation would help protect competition and give shoppers more choice.
Aldi and Lidl have officially joined the UK's ‘Large Grocery Retailers’ club after the Competition and Markets Authority (CMA) designated the discounters under rules governing supermarket land agreements.
The decision brings Aldi, Lidl GB and Lidl NI under the same restrictions that have applied to Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury's, Tesco and Waitrose since 2010.
The rules are designed to prevent large supermarket chains from using land agreements to make it harder for rival retailers to open stores nearby. They particularly target restrictive covenants and exclusivity arrangements that can limit competition in local areas.
The CMA said the measures would help supermarkets compete more freely, giving shoppers greater choice over where to buy groceries and how much to pay.
Review and decision
The CMA invited views on the proposed designation in August. Interested parties, including Morrisons, Waitrose and Iceland, submitted responses and supported the proposal. Aldi, Lidl GB and Lidl NI did not make representations.
Following the designation, the retailers cannot include prohibited restrictions in new agreements. Existing agreements can also be reviewed by the CMA at the request of interested landowners, developers or rival supermarkets.
Juliette Enser, executive director for Competition Enforcement and Markets at the CMA, said the rules had been introduced to stop major supermarket chains from blocking rival stores from opening in their areas.
“Now those rules apply to Aldi and Lidl,” she said, adding that the move would help level the playing field and ensure shoppers had the best choice of products and prices in their area.
Aldi and Lidl rank among the UK's five largest grocery retailers by market share. The country's food and grocery market is estimated to be worth £222.7 billion.
