The Competition and Markets Authority (CMA) has provisionally decided that discount supermarket giants Aldi, Lidl GB, and Lidl NI should be subject to the same land agreement restrictions as the UK’s largest grocery chains. The proposal aims to ensure fair competition and expand store options for consumers across the country.
Under the Groceries Market Investigation (Controlled Land) Order 2010, designated “Large Grocery Retailers” are prohibited from using land agreements—such as restrictive covenants or exclusivity arrangements—to block competing supermarkets from opening stores nearby. Currently, the Order applies to seven major chains, including Tesco, Sainsbury’s, Asda, Morrisons, Co-op, Waitrose, and Marks & Spencer.
When the regulations were originally created in 2010, Aldi and Lidl were excluded because they operated as “limited assortment discounters.” However, given the vast growth of the UK food and grocery sector, now valued at an estimated £215 billion, both brands have expanded significantly and currently rank among the top five grocery retailers in the market.
Following a comprehensive review, the CMA concluded that both brands now meet the criteria for Large Grocery Retailers. Regulators highlighted three primary factors driving this change: their expansive geographic coverage featuring stores larger than 1,000 square meters, their comprehensive product ranges that cover a full spectrum of groceries, and their integrated direct-procurement supply models.
Juliette Enser, Executive Director of Competition Enforcement and Markets at the CMA, emphasized that the proposed update is designed to level the playing field among major grocers while protecting consumer choice. By removing the ability of discounters to restrict nearby competitor openings, the regulator aims to foster lower prices and greater local shopping choices.
The CMA’s findings remain provisional. The regulator has invited industry stakeholders, retailers, and the public to submit feedback on the proposal by September 7, 2026. After evaluating the responses, the authority expects to issue a final decision later in the autumn.
