Aldi is urging expedited planning permissions to overcome delays in its UK expansion plans, addressing challenges faced due to slow approvals from local councils.
- George Brown, Aldi’s national real estate director, has highlighted the lengthy planning consent process that hampers new store openings, often taking over 12 months.
- Aldi expresses readiness to invest in the planning application process to speed up store approvals, emphasising the need for streamlined decision-making.
- The retailer aims to increase its UK presence to 1,200 stores by 2025 but has encountered bureaucratic hurdles and resource limitations.
- Competitors like Iceland and Lidl also face similar challenges, with planning system inefficiencies criticised as hindrances to growth.
Aldi, a leading supermarket chain, is calling for urgent reforms in the planning permission process, aiming to alleviate the delays caused by under-resourced local authorities. George Brown, the national real estate director of Aldi, has pointed out that securing planning consent for new stores is a protracted ordeal, frequently extending beyond 12 months. This problem was brought to light during a meeting with a senior special adviser to the Prime Minister, where Brown advocated for reforms that would align with the Government’s strategy to reinvigorate the economy and stimulate construction activities.
Aldi is prepared to invest in the planning application process to expedite the approval timeline for new retail developments. Brown noted the tendency of planning authorities to prioritise warehouse and industrial estate approvals, which supposedly generate fewer local jobs compared to supermarkets. “To unlock significant investment in the UK economy, this needs to change,” urged Brown. Aldi has ambitious plans to expand to 1,200 stores by 2025 but is lagging with just over 1,020 locations currently due to these bureaucratic setbacks.
The setbacks are attributed to a combination of planning red tape, building material shortages, and competitive objections, all contributing to a slowdown in Aldi’s expansion and revenue growth. The discussion with the senior adviser is part of a broader initiative led by the Prime Minister to streamline the planning process for various projects, including residential and commercial developments. Keir Starmer has committed to accelerating the planning system to promote swift infrastructure development.
This issue highlights widespread frustration within the retail sector regarding the cumbersome planning system. Like Aldi, other supermarket chains such as Waitrose, Iceland, and Lidl have also voiced their concerns over bureaucratic obstacles that impede their expansion plans. Richard Walker, managing director of Iceland, has labelled planning delays as a “handbrake on growth,” citing how protracted approval times stifle new store openings.
There are claims of restrictive clauses in property deals from Aldi and Lidl aimed at preventing Iceland’s expansion, though both companies have opted not to comment. Conversely, Aldi asserts that its store openings are being delayed by increasing objections from rival supermarkets. Aldi CEO Giles Hurley has highlighted this competitive dynamic, noting that objections have risen as Aldi maintains a substantial price advantage over traditional supermarkets. Nevertheless, supermarket chains have countered these allegations, asserting that they only raise objections based on genuine planning concerns.
In an increasingly competitive retail landscape, resolving planning permission challenges is critical for supermarket chains to achieve their expansion objectives.
