After conducting a review, the CMA has tentatively concluded that Aldi, Lidl GB, and Lidl NI should adhere to regulations established in the Groceries Market Investigation (Controlled Land) Order 2010. These regulations currently apply to other major retailers, including Asda, Co-op, Marks & Spencer, Morrisons, Sainsbury’s, Tesco, and Waitrose.
This Order is designed to prevent ‘Large Grocery Retailers’ (LGRs) from leveraging land agreements that would hinder competing supermarkets from establishing nearby locations. It specifically targets the use of restrictive covenants and exclusivity clauses.
The purpose of these regulations is to promote fair competition among supermarkets, ensuring consumers have a broader selection of grocery options and competitive pricing.
The CMA asserts that Aldi, Lidl GB, and Lidl NI should be included under this Order due to their extensive store presence and geographic reach, comprehensive grocery offerings, and efficient procurement strategies. With the UK food and grocery market valued at approximately £215 billion, both Aldi and Lidl hold significant market shares, ranking them among the nation’s leading retailers.
Currently, the CMA might reclassify discounters as LGRs. When the Order was implemented in 2010, Aldi and Lidl’s operations in the UK were excluded from its provisions as they were categorized as ‘limited assortment discounters’ (LADs), offering a much narrower selection of goods at lower prices compared to LGRs. However, the CMA has now provisionally determined that both Aldi and Lidl no longer fit this classification and instead should be recognized as LGRs.
This reclassification is grounded in several criteria:
- Store footprint and geographic coverage: Both brands operate sizeable grocery stores exceeding 1,000 square meters across Great Britain and Northern Ireland.
- Product range: They provide a complete selection of groceries, albeit with less variety in some categories when compared to established LGRs.
- Procurement model: They source their groceries directly from suppliers through a streamlined wholesaling approach.
Before making a final decision, the CMA seeks additional input regarding the classification of Aldi, Lidl GB, and Lidl NI as LGRs under the Order, which would subject them to the land agreement regulations. Stakeholders are encouraged to submit their opinions on the provisional findings by 5 PM on Monday, September 7, 2026. The CMA will review the feedback prior to making an informed decision in the upcoming autumn.
Juliette Enser, the executive director for competition enforcement and markets at the CMA, remarked: “Our aim is to provide everyone with a wide choice of supermarkets and price options for their grocery shopping. To achieve this, we establish rules that prevent large supermarket chains from obstructing the opening of competing stores nearby—now, we propose extending these regulations to Aldi and Lidl as well.”
She added, “This effort is about empowering consumers to choose where they spend their money while creating a level playing field for all key supermarket players. These proposals are provisional, and we encourage feedback before moving forward with our decisions.”
