Following a review, the CMA has provisionally decided that Aldi, Lidl GB and Lidl NI should be subject to rules set out in the Groceries Market Investigation (Controlled Land) Order 2010, which already apply to Asda, Co-op, Marks & Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose.
The Order prevents ‘Large Grocery Retailers’ (LGRs) from using land agreements to make it more difficult for rival supermarkets to open nearby – in particular through the use of restrictive covenants and exclusivity arrangements.
The rules aim to ensure supermarkets compete freely, while looking to make sure that shoppers have more choice about where to buy, and how much to pay for, their groceries.
The CMA’s provisional view is that Aldi, Lidl GB and Lidl NI should now be covered by the Order because of the scale and geographic coverage of their stores, their full range of groceries and their procurement model. It also stated that with the UK food and grocery market estimated to be worth £215 billion, Aldi and Lidl’s market share ranks them among the top five retailers.
Discounters could be reclassified as LGRs
When the Order was made in 2010, Aldi’s and Lidl’s UK activities were excluded from its scope as ‘limited assortment discounters’ (LADs), selling a significantly more limited range of groceries than the LGRs at a low price. However, the CMA said that provisionally it no longer classifies Aldi and Lidl as LADs, and instead labelled them as LGRs.
The reclassification was based on the following criteria:
- Store footprint and geographic coverage: each operates larger grocery stores – those with a shopfloor area of more than 1,000 square metres – throughout either Great Britain or Northern Ireland
- Product range: each carries a full range of groceries, even though they may offer less choice within some categories than some existing LGRs
- Procurement model: each purchases groceries directly from suppliers through an integrated grocery wholesaling function
Before reaching a final decision, the CMA is seeking further views on whether Aldi, Lidl GB and Lidl NI should be designated as LGRs under the Order and therefore be subject to the land agreement rules. It is now inviting stakeholders to submit views on the provisional findings by 5pm on Monday 7th September 2026, and will consider the responses before final decisions are reached in the autumn.
Juliette Enser, executive director of competition enforcement and markets at the CMA, commented: “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.
“This is about allowing shoppers to choose where they spend their money and levelling the playing field for all major supermarkets. Today’s proposals are provisional and we welcome views before deciding the best way forward.”
