The UK Competition and Markets Authority (CMA) has decided that Aldi, Lidl GB and Lidl NI will be designated as “Large Grocery Retailers”. The decision was announced on 22 October 2026.
The rules in question date from 2010 (the Groceries Market Investigation (Controlled Land) Order). They ban large chains from putting restrictions into land agreements that make it harder for competitors to open a store nearby. Such restrictions include exclusivity clauses or restrictive covenants on selling a site to another chain.
Since 2010 the rules have covered Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose. Now Aldi and Lidl join them. New agreements by these chains may not contain prohibited terms. The CMA can review existing agreements at the request of landowners, developers or rival chains.
In the August consultation Morrisons, Waitrose and Iceland supported the change. Aldi and Lidl did not submit comments. According to the CMA, the UK grocery market is worth about £222.7bn, and Aldi and Lidl are among the five largest chains by market share. Lidl GB operates in England, Scotland and Wales, and Lidl NI in Northern Ireland. Aldi has no stores in Northern Ireland.
What it means for you
Shoppers: over time there may be more shops close to home and greater price competition. That matters while food prices are high.
Polish businesses: landowners, developers and construction firms may benefit. It will be easier to sell or let a site formerly occupied by another chain’s store. Smaller chains and shops, including Polish delis looking for premises near large retail parks, also stand to gain.
Our assessment
The decision has been taken, so it will happen. The effect will not be immediate – it mainly concerns new agreements, and old ones must be referred for review. It is, however, a clear signal: Aldi and Lidl are no longer “challengers” but part of the big four and five. That is good news for the market. Fewer artificial barriers mean more competition.
What to do
- Do you own land or premises with a clause blocking a sale to another grocery chain? Check the agreement with a lawyer.
- You can ask the CMA to review such an agreement. Details in the CMA announcement.
- Looking for retail premises? Ask agents about sites next to existing supermarkets.
Source: GOV.UK, Competition and Markets Authority (22.10.2026).
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