The Competition and Markets Authority in the UK has now officially labeled Aldi and Lidl as “large grocery retailers” after concluding its review process. The classification applies to Aldi Stores Limited, Lidl Great Britain Limited, and Lidl Northern Ireland Limited under the 2010 Groceries Market Investigation (Controlled Land) Order.
The designation bars both supermarket businesses from entering property agreements, specifically exclusivity terms and restrictive covenants, aimed at preventing competing food retailers from launching nearby sites. Under the order, the companies are prohibited from adding these terms to any upcoming land agreements.
Existing agreements may also be examined by the CMA if a landowner, commercial developer, or competing supermarket asks the regulator to conduct a review. This decision brings Aldi and Lidl under the identical statutory property constraints that have applied to Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco, and Waitrose since 2010.
The regulator’s analysis focused on three factors: both chains now run stores larger than 1,000m² across Great Britain or Northern Ireland, and they sell a full grocery range. Although rivals Morrisons, Waitrose, and Iceland supported the designation, the CMA confirmed that no objections were raised by Aldi Stores Limited, Lidl Great Britain Limited, or Lidl Northern Ireland Limited.
CMA executive director for competition enforcement Juliette Enser noted that Aldi and Lidl rank among the top five supermarket chains in the UK food and grocery market, which is worth roughly £222.7bn. Enser stated, “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 regulator’s ruling applies to Aldi and Lidl’s property agreements.
