TOWNS and villages in the UK could see more rival supermarkets built near Aldi and Lidl stores under a major rule change.
The German discount brands are allowed to block other supermarkets from opening close to them, as they are subject to different rules than other major retailers.
Aldi and Lidl are allowed to block rival supermarkets from opening stores nearby
The competition watchdog is planning a change to the rules, which could see more supermarkets built nearby Credit: Getty
But the UK’s competition watchdog has said they should be covered by the same land agreement rules as the UK’s largest supermarket chains.
Rules designed to stop large grocery retailers from using land agreements to make it harder for rival supermarkets to open nearby were introduced in 2010.
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The restrictions currently apply to seven retailers – Asda, Co‑op, Marks and Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose.
In a provisional decision, the Competition and Markets Authority (CMA) said it believes Aldi, Lidl GB and Lidl NI should also be subject to the rules.
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Aldi is the UK’s fourth largest grocer, with a 10.8% share of the market, and Lidl the sixth largest with an 8.8% share, according to recent figures from Worldpanel.
Both companies have rapidly expanded through store openings in recent years, while they have also attracted new shoppers through their discount pricing.
The regulator said the brands were not originally included in the rules due to their more limited range of products, but said they should now be covered by the restrictions after expanding their shop estate and opening larger stores.
The CMA has said it is seeking further views before reaching a final decision.
Juliette Enser, of 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 spokesman 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 spokesman 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.”
