The Competition and Markets Authority (CMA) has Thursday decided that Aldi, Lidl GB and Lidl NI will be designated as ‘Large Grocery Retailers’ under the Groceries Market Investigation (Controlled Land) Order 2010.
The Order is designed to stop Large Grocery Retailers from using land agreements to make it harder for rival supermarkets to open nearby – in particular through the use of restrictive covenants and exclusivity arrangements.
The Order has applied to Asda, Co‑op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose since 2010. The rules ensure supermarkets compete freely – and ultimately ensure shoppers have more choice about where to buy, and how much to pay for, their groceries.
In August, the CMA invited views on its proposal to designate Aldi, Lidl GB and Lidl NI under the Order. Supermarkets like Morrisons, Waitrose and Iceland have supported the CMA’s proposal in their submissions.
The CMA confirmed that it did not receive representations from the German discounters.
Once a retailer is designated, it cannot include any prohibited restrictions in new agreements – and existing agreements can be reviewed by the CMA, on the request of interested landowners, developers, and rival supermarkets. This is the case for all designated supermarkets.
“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,” Juliette Enser, executive director for competition enforcement and markets at the CMA, said.
“This will help level the playing field and make sure shoppers get the best choice of products and prices in their area.”
The UK food and grocery market is worth an estimated £222.7 billion, CMA said, with Aldi and Lidl ranking among the top 5 retailers by market share.
Both retailers have been on an expansion spree in the UK. Aldi has announced a £370 million investment in new stores this year with a long-term ambition to operate 1,500 stores across the UK. It is set to open or relocate nearly 30 stores before Christmas.
Lidl, which reached its 1,000th store milestone last year, opened over 40 new stores while investing £43 million in upgrades to more than 70 current sites in the financial year ended 28th February 2026. The discounter has plans to open more than 50 new stores in the current financial year as part of a £600 million investment.