Aldi and Lidl may no longer be able to include clauses that ban competitors from opening nearby when signing new property deals, the UK's Competition and Markets Authority (CMA) has said.

The CMA opened a consultation yesterday on whether the two supermarkets should be considered Large Grocery Retailers under a 2010 order that bans "restrictive covenants" in property contracts – which would stop them from preventing other supermarkets from opening near their stores.

When the Order was made in 2010, seven supermarkets were designated in the category, but Aldi and Lidl were at the time considered Limited Assortment Discounters due to their restricted product range and low-price business model.

Fifteen years on, their status has changed. Aldi is now the fourth largest grocer in the country by market share, and Lidl is not far behind in sixth place. This has led the CMA to investigate whether their use of these clauses in property contracts has had, or could in future have, an impact on competition or consumers.

The public consultation period runs until 13 April, and final decisions will be published in September, the CMA says. It has already gathered evidence from the retailers themselves.

Aldi and Lidl continue to expand rapidly in the UK. Aldi has pledged to invest £370 million in opening around 40 new stores this year, as part of its £1.6 billion two-year investment plan announced last September. Lidl has opened 19 news stores in the last two months and is the UK’s fastest-growing brick and mortar retailer, according to Numerator.

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