Here’s what the new Aldi and Lidl proposals mean for where UK shoppers buy their groceries
Key Points
- The CMA has provisionally found that Aldi, Lidl GB and Lidl NI qualify as Large Grocery Retailers under the Groceries Market Investigation (Controlled Land) Order 2010.
- The Order stops covered supermarkets from using restrictive covenants and exclusivity deals to block rivals opening nearby.
- Seven retailers currently fall under the Order: Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury's, Tesco and Waitrose.
- The CMA judged Aldi and Lidl on store footprint, product range and their direct-from-supplier procurement model.
- Views close at 5pm on 7 September 2026, with final decisions due in the autumn.
The Competition and Markets Authority (CMA) has provisionally decided that Aldi, Lidl GB and Lidl NI should follow the same land agreement rules as the UK’s biggest supermarket chains, which would stop them using property deals to keep rivals from opening nearby.
The Groceries Market Investigation (Controlled Land) Order 2010 currently covers seven retailers: Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose.
It restricts how those chains use restrictive covenants and exclusivity arrangements in land deals, tools that can make it harder for a competing supermarket to open on a nearby site.
The Competition Commission, the CMA’s predecessor, introduced the Order after finding that such agreements raised barriers to entry and reduced consumer choice in concentrated local markets.
Aldi and Lidl sat outside the Order when it took effect in 2010 because the CMA classed their UK operations as limited assortment discounters, selling a narrower range of groceries at low prices. The CMA has now reviewed how the two chains operate and provisionally found that they no longer fit that description.
The regulator assessed all three businesses against three criteria. Each operates larger grocery stores, meaning shopfloor space above 1,000 square metres, across either Great Britain or Northern Ireland. Each sells a full range of groceries, even where individual categories offer less choice than some of the existing designated retailers. And each buys directly from suppliers through an integrated grocery wholesaling function.
The UK food and grocery market is worth an estimated £215 billion, and various sources place Aldi and Lidl among the top five retailers by market share. Lidl’s UK business has also changed shape since 2010, splitting into Lidl Great Britain Ltd and Lidl Northern Ireland Ltd, which is why the CMA has assessed the two entities separately alongside Aldi Stores Ltd.
“We want everyone to have the best choice of supermarket and range of prices when buying their groceries. 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,” said Juliette Enser, Executive Director of Competition Enforcement and Markets at the CMA.
“This is about allowing shoppers to choose where they spend their money and levelling the playing field for all major supermarkets. Today’s proposals are provisional and we welcome views before deciding the best way forward,” she added.
The CMA has made no final decision. Stakeholders can submit views on the provisional findings until 17h00 on 7 September 2026, and the regulator will reach final decisions in the autumn after considering the responses.
If it confirms the designation, Aldi, Lidl GB and Lidl NI will come under the Order’s restrictions on land agreements, which the CMA monitors and enforces across the retailers already covered.
