Home Business & Finance Aldi and Lidl could soon be stopped from blocking rival...
Business & Finance

Aldi and Lidl could soon be stopped from blocking rival supermarkets opening shops

Aldi and Lidl could soon be stopped from blocking rival supermarkets opening shops
Key Points

Aldi and Lidl could soon be stopped from blocking rival supermarkets opening shops The Controlled Land Order does not currently cover Aldi and Lidl, and instead applies to the seven other large supermarkets, including Asda, Tesco, Waitrose and Co-op Aldi and Lidl should be stopped from blocking rivals opening shops nearby, the competitions watchdog has said. The Competition and Markets Authority (CMA) has provisionally decided that Aldi and Lidl should be covered by the same land agreement...

Aldi and Lidl could soon be stopped from blocking rival supermarkets opening shops The Controlled Land Order does not currently cover Aldi and Lidl, and instead applies to the seven other large supermarkets, including Asda, Tesco, Waitrose and Co-op Aldi and Lidl should be stopped from blocking rivals opening shops nearby, the competitions watchdog has said. The Competition and Markets Authority (CMA) has provisionally decided that Aldi and Lidl should be covered by the same land agreement rules as other UK supermarkets. It would see the CMA widen the scope of the Controlled Land Order, which prevents large grocery retailers from adding restrictions to their land to stop competitors from opening stores nearby. The rules were introduced in 2010 and currently apply to seven retailers – Asda, Co‑op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose. Aldi and Lidl were not included at the time as they were much smaller, but their market share has grown substantially over recent years. According to recent industry data tracked by Worldpanel by Kantar, Aldi is the fourth-largest grocer in the UK with a 10.8% market share, while Lidl ranks sixth with an 8.8% share. Both stores have expanded through store openings. Aldi has around 1,050 stores with a long-term goal of 1,500 branches, while Lidl has more than 1,000 sites and recently announced plans to open 50 new sites in the next 12 months. In a provisional decision, the CMA said it believes Aldi, Lidl GB and Lidl NI should also be subject to the same rules as other supermarkets. Its proposals are under consultation until September 7 and a final decision is expected to be made in the autumn. Juliette Enser, executive director of competition enforcement and markets at the CMA, said: “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.” An Aldi spokesperson said: “The CMA's provisional decision does not impact our long-term growth plans across the UK. We remain firmly committed to opening hundreds of new stores across the country, bringing Aldi's unbeatable value and award-winning quality to even more customers.” A Lidl spokesperson said: “We note the CMA’s provisional decision regarding our status under the Controlled Land Order. “As a discounter, we have always welcomed and embraced competition within the market and our focus remains on continuing to open new stores and bringing our high-quality, lowest-priced groceries to even more communities. Any outcome will not impact our steadfast momentum and growth."
Aldi (ORG) Lidl (ORG) The Controlled Land Order (ORG) Asda (ORG) Tesco (ORG) Waitrose (ORG) Co-op (ORG) The Competition and Markets Authority (ORG) CMA (ORG) UK (LOCATION) Marks (PERSON) Spencer (PERSON) Morrisons (ORG) Sainsbury (ORG) Worldpanel (PERSON)
Originally published by Daily Mirror Read original →