The UK's Competition and Markets Authority (CMA) has provisionally proposed designating Aldi, Lidl GB and Lidl NI as Large Grocery Retailers (LGRs), a move that would place them under land use restrictions.

If confirmed, the three businesses would be subject to the Groceries Market Investigation (Controlled Land) Order 2010, which already covers Asda, Co-op, Marks and Spencer, Morrisons, Sainsbury's, Tesco and Waitrose.

The order bars large grocery retailers from using land agreements, such as restrictive covenants and exclusivity clauses, to stop competing supermarkets from opening nearby.

LGR status is a regulatory classification used by competition authorities, including the CMA, for major chains considered to have substantial influence in the food retail market.

If the provisional proposals are confirmed, Aldi and Lidl would no longer be able to prevent rival chains from opening stores close to their sites.

The change is intended to widen consumer choice.

When the order was introduced in 2010, Aldi and Lidl were not included because they were classified as limited assortment discounters (LADs), also described as hard discounters, offering a narrower product range at lower prices than large grocery retailers.

After reviewing the way the two chains now operate, the CMA has provisionally concluded that Aldi and Lidl GB and NI “no longer qualify” for LAD status.

The regulator's assessment rests on three considerations: both retailers now operate larger stores exceeding 1,000m² of shop floor space across Great Britain or Northern Ireland, and both offer a comprehensive grocery range, even though certain categories provide fewer options than at established large grocery retailers.

Both also source products directly from suppliers through their own integrated wholesaling operations, according to the CMA.

The CMA has opened a consultation and is accepting submissions from stakeholders until 7 September 2026. A final decision is expected in later this year.

CMA competition enforcement and markets executive director Juliette Enser 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.”