CMA designates Aldi and Lidl as large grocery retailers

The UK Competition and Markets Authority (CMA) has issued a provisional decision to designate Aldi, Lidl GB, and Lidl NI as ‘Large Grocery Retailers’ (LGRs) under the Groceries Market Investigation (Controlled Land) Order 2010.

This designation brings the German discounters under the same land agreement rules as established supermarkets such as Tesco, Sainsbury’s, Asda, and Morrisons. The order is intended to prevent large retailers from using restrictive covenants or exclusivity arrangements in land agreements to block rival supermarkets from opening nearby.

Previously, Aldi and Lidl were excluded from these rules because they were classified as ‘limited assortment discounters.’ However, the CMA cited their rapid expansion as the reason for the change. Major retailers, including Waitrose and Morrisons, supported the proposal, while Iceland described the previous lack of regulation as a ‘problematic’ loophole that allowed the discounters to exert significant competitive influence.