Aldi and Lidl Must Face the Same Regulations as Leading Supermarkets in the UK

CMA Takes Steps to Enhance Supermarket Competition

The Competition and Markets Authority (CMA) has provisionally concluded that Aldi, Lidl GB, and Lidl NI should be classified as ‘Large Grocery Retailers’ (LGRs) and subjected to the regulations established in the Groceries Market Investigation (Controlled Land) Order 2010. This decision is aimed at preventing these retailers from obstructing other supermarkets from setting up in proximity to their existing outlets.

The purpose of the Order is to prevent LGRs from employing land agreements that could hinder the establishment of competing supermarkets, particularly through restrictive covenants and exclusivity clauses. These regulations are intended to foster healthy competition within the grocery sector, ultimately providing consumers with a greater selection of shopping options and influencing price competitiveness.

At present, the Order is applicable to seven major grocery retailers, including Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco, and Waitrose. The CMA employs specific criteria to evaluate which retailers fall under this classification, and its preliminary determination is that Aldi, Lidl GB, and Lidl NI meet the necessary qualifications due to their extensive store networks, comprehensive grocery offerings, and procurement practices.

Shifting Retail Dynamics in the UK

Valued at approximately £215 billion, the UK food and grocery market has seen Aldi and Lidl ascend to prominent positions among the top five retailers, according to various analyses. Initially excluded from the Order when it was enacted in 2010, Aldi and Lidl were considered ‘limited assortment discounters’ (LADs), providing a more restricted selection of groceries at lower prices. However, recent evaluations by the CMA suggest that both retailers have significantly evolved and no longer fit within that category.

The CMA’s provisional findings indicate that both Aldi and Lidl now operate larger grocery stores exceeding 1,000 square metres in various locations across Great Britain and Northern Ireland. Furthermore, they offer a complete range of grocery products, albeit with potentially less variety in certain categories compared to other LGRs. Their procurement model also reflects a direct purchasing strategy from suppliers, employing an integrated grocery wholesaling approach.

Seeking Stakeholder Input

Before finalising its decision, the CMA is actively soliciting feedback on whether Aldi, Lidl GB, and Lidl NI should indeed be classified as LGRs under the existing Order, thus making them subject to the land agreement stipulations. Juliette Enser, Executive Director of Competition Enforcement and Markets at the CMA, emphasised the importance of ensuring a diverse array of supermarket options for consumers, stating, “To ensure this happens, we put rules in place to prevent big supermarket chains blocking rival stores from opening nearby – and now we propose applying those rules to Aldi and Lidl too.”

Enser further articulated that the proposals aim to provide consumers with the freedom to choose where they shop while also promoting fair competition among major supermarket players. The CMA welcomes a range of opinions before arriving at a definitive conclusion.

Next Steps for the CMA

No conclusive decision has been made at this stage. The CMA invites stakeholders to share their perspectives on the provisional findings by 5pm on Monday, 7 September 2026. The authority will consider these inputs prior to reaching a final decision in the autumn.

For further details, interested parties can visit the case page.

Background Information

It is important to note that the CMA’s provisional decisions specifically pertain to Aldi Stores Ltd, Lidl Great Britain Ltd (Lidl GB), and Lidl Northern Ireland Ltd (Lidl NI). Following the implementation of the Order, Lidl has restructured its operations, with Lidl GB now functioning in Great Britain and Lidl NI in Northern Ireland.

The Order was established following investigations by the Competition Commission, the CMA’s predecessor, which concluded that land agreements, including restrictive covenants and exclusivity clauses, could create barriers to entry, diminish competition, and reduce consumer choice in local markets with high concentration.

For media inquiries, please contact the CMA press office at press@cma.gov.uk or by phone at 020 3738 6460 during office hours, which are Monday to Friday, from 9am to 5:30pm. For urgent matters outside of these hours, please use our out-of-hours number at 020 3738 6878.