CMA Reviews 2010 Land Rules After Sainsbury’s, Morrisons and Iceland Call for Aldi and Lidl to Face Same Restrictions

Sainsbury’s, Morrisons and Iceland have urged the Competition and Markets Authority to tighten land rules for Aldi and Lidl. The three supermarket groups argued that the current system gives the German discounters an unfair advantage and want regulators to prevent Aldi and Lidl from using restrictive property covenants that can limit rival stores opening nearby.

The CMA introduced the Controlled Land Order in 2010 to stop major grocers from blocking competition through land agreements, including acquiring sites without developing them or adding clauses preventing future grocery use.

Aldi and Lidl were exempt from the Controlled Land Order in 2010 due to their status as limited-assortment discounters. Sainsbury’s said the exemption is now distorting competition and argued that Aldi and Lidl can restrict rivals’ expansion while other retailers of similar scale cannot.

Iceland and Morrisons said the market has changed since 2010, with more shoppers now doing their main weekly shop at discount chains.

Sainsbury’s warned the regulatory gap could allow Aldi and Lidl to expand more quickly than competitors. The calls come as Aldi does not operate online shopping, counters or 24-hour stores, has around 1,050 UK stores and plans to open 40 more this year. Aldi defended its model, noting many areas still lack access to a local Aldi leaving customers paying higher prices.

GB News reported that the CMA is expected to publish its final decision in September. Food inflation continues to put pressure on households. Analysts warned prices could be 50 per cent higher by November than at the start of the cost-of-living crisis.

Research from the Energy and Climate Intelligence Unit shows staples such as pasta, eggs and beef have already surged by more than 50 per cent. Sainsbury’s, Morrisons and Iceland argue that rising grocery costs make fair market access even more important particularly as lower-income families feel the squeeze.