This decision means the discounters will be subject to the same land agreement rules as the UK’s other large supermarkets, including Asda, Co‑op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco, and Waitrose, which have been in place since 2010. The Order is designed to prevent large grocery retailers from using land agreements to hinder rival supermarkets from opening nearby, particularly through restrictive covenants and exclusivity arrangements. These rules aim to ensure supermarkets compete freely, ultimately providing shoppers with greater choice and better prices.
The CMA had invited views on its proposal in August, with interested parties including Morrisons, Waitrose, and Iceland supporting the proposal. Aldi, Lidl GB, and Lidl NI did not submit representations.
Once designated, retailers cannot include prohibited restrictions in new agreements, and existing agreements can be reviewed by the CMA upon request from interested landowners, developers, or rival supermarkets. This applies to all designated supermarkets.
“"We put in place rules to stop big supermarket chains from blocking rival stores opening in their area, and now those rules apply to Aldi and Lidl. This will help level the playing field and make sure shoppers get the best choice of products and prices in their area."
The UK food and grocery market is valued at an estimated £222.7 billion, with Aldi and Lidl ranking among the top 5 retailers by market share.
The Groceries Market Investigation (Controlled Land) Order 2010 was introduced following an investigation by the CMA’s predecessor, the Competition Commission, to prevent designated grocery retailers from using restrictive land agreements that could harm competition. Lidl operates separate businesses in Great Britain and Northern Ireland, while Aldi does not operate stores in Northern Ireland.
