The UK’s competition regulator proposed bringing Aldi and Lidl under the same land-use rules applied to the country’s largest supermarket chains. The provisional decision was published Monday.
The Competition and Markets Authority stated the two discount grocers should no longer be exempt from the Groceries Market Investigation (Controlled Land) Order 2010. That measure prevents major retailers from using land agreements to block competitors from opening nearby stores.
The order currently covers Asda, Co-op, Marks & Spencer, Morrisons, Sainsbury’s, Tesco, and Waitrose. The CMA explained Aldi and Lidl have outgrown their previous classification. Many of their locations now exceed 1,000 square meters of shopfloor space, stock a full range of groceries, and use integrated procurement models—buying directly from suppliers through their own wholesaling operations.
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Juliette Enser, the CMA’s executive director of competition enforcement and markets, said the proposal aims to give customers more choices and create fair conditions for all major supermarkets. “This is about allowing shoppers to choose where they spend their money,” she stated.
The change would prevent Aldi and Lidl from using restrictive land covenants to stop rival supermarkets from opening nearby. Such agreements have historically been used by larger chains to limit competition in local markets.
The regulator determined the two grocers now meet the criteria for inclusion under the 2010 order, despite offering fewer product choices in some categories. Both chains have expanded their store footprints and supply chains significantly since the order was first implemented.
If finalized, the decision would mark the first time the CMA has extended the land-use rules to discount grocers. Stakeholders have until 5 p.m. on Monday, September 7, 2026 to submit feedback before the regulator makes a final determination in the autumn.
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Juliette Enser clarified the CMA’s decision is not about limiting growth but ensuring all major supermarkets follow the same rules. “We want everyone to have the best choice of supermarket and range of prices when buying their groceries,” she said.
A review found that while the discount chains still offer fewer product lines than their larger rivals, their business models have evolved. They now include many of the same functions as traditional supermarkets, such as direct procurement from suppliers and in-house wholesaling. That evolution, the regulator said, justifies bringing them under the same regulatory framework.
If adopted, the proposal could influence how the CMA treats other rapidly growing discount retailers. For now, the regulator will focus on gathering input from supermarkets, suppliers, and consumer groups before making a final decision.
