CMA launches consultation on banning Aldi and Lidl from restrictive land deals

Under the 2010 Controlled Land Order, Tesco, Sainsbury’s, Asda, Morrisons, Waitrose and the Co-op were banned from having “restrictive covenants” in new property deals, as they were considered large grocery retailers. 

At the time, both Aldi and Lidl were not classified as such, but were instead regarded as limited assortment discounters, which allowed them to block the opening of competitor stores nearby.

The consultation is “seeking views on whether Aldi and/or Lidl meet the criteria to be designated as a large grocery retailer under the Groceries Market Investigation (Controlled Land) Order 2010”.

“When the order was made, seven large supermarkets were formally designated as large grocery retailers and required to comply with its terms,” the consultation document said.

“They were designated as large grocery retailers on the basis that they operate larger grocery stores throughout Great Britain or Northern Ireland or both or in a considerable part of the UK; offer for retail sale a full range of groceries; and maintain an integrated grocery wholesaling function that procures products directly from grocery suppliers.

“Aldi and Lidl were not at that time designated as large grocery retailers. They were instead considered to be limited assortment discounters, reflecting their more limited product ranges and low-price business model.”

It added: “We are now considering whether Aldi and/or Lidl satisfy the criteria for designation in the order. As part of this work, we have already gathered evidence from Aldi and Lidl, and intend to gather further evidence from them and large grocery retailers.”

The CMA is also keen to take views on whether or not continuing to exempt Aldi and Lidl from the Controlled Land Order is impacting competition or consumer choice. 

Interested stakeholders have until April 13 to submit their responses to the CMA.