Aldi is ramping up pressure on Sir Keir Starmer in an effort to speed up planning permission for new stores as it battles ongoing delays from local councils. The German discounter, which is targeting significant expansion across the UK, has found itself hampered by slow approval processes.
George Brown, Aldi’s national real estate director, recently disclosed that he met with one of the Prime Minister’s senior special advisers as the government seeks to drive economic growth and "get Britain building again." Mr Brown confirmed that he had urged Sir Keir to reform the decision-making process for granting planning permission to retailers.
Writing on LinkedIn, Brown highlighted the challenges Aldi faces: “Obtaining planning consent for new Aldi schemes can take us over 12 months due to under-resourcing in local authorities. We will happily invest in the application process to help speed that up.” He also pointed out that planning authorities appeared more welcoming of warehouse or industrial estate projects, even though these developments generate fewer jobs for local communities.
“To unlock significant investment in the UK economy, this needs to change,” Brown emphasised, pointing to the broader economic impact of the delays.
Aldi, which last year raised concerns about missing its target of 1,200 stores by 2025, is currently operating just over 1,020 outlets. The chain recently revised its goal to 1,500 stores in the UK but did not specify a timeline. Brown attributed these delays to "planning red tape, shortages of building materials, and objections by competitors," which he said have slowed the supermarket's expansion plans. Aldi's sales growth has also decelerated, with experts linking this to the sluggish pace of new store openings.
The meeting with Sir Keir’s adviser comes as the Prime Minister reiterates his commitment to being "builders, not blockers." This summer, Sir Keir pledged to "turbo-charge" and streamline the planning process, aiming to expedite home-building and infrastructure projects. However, the retail sector has been particularly vocal about the need to overhaul the planning system, as supermarkets race to secure new sites.
Richard Walker, managing director of Iceland, recently told The Telegraph that planning delays had been a “handbrake on growth.” Walker shared that Iceland is “stymied at pretty much every site we look at,” with delays ranging from several months to two years. He stressed that if the government wants to boost growth, “the one thing they could do is free up the planning system.”
Walker also took aim at competitors Aldi and Lidl, accusing them of using restrictive property deals to block Iceland from opening nearby stores. Both Aldi and Lidl declined to comment on the accusations. However, Aldi has previously claimed that other supermarkets have used planning objections to slow down its own expansion.
Giles Hurley, CEO of Aldi UK, revealed last year that the chain had been receiving “more objections from our competition than we used to.” He added, “If you look at the price gap between Aldi and the more expensive traditional supermarkets, it’s been very consistent for years, and I guess one of the ways to try to prevent customers from taking advantage of that is to slow down or stop openings.”
Supermarkets have denied they are filing unnecessary objections, with retail chiefs maintaining that they only raise issues where there are legitimate planning concerns.
No. 10 has declined to comment on the matter.
Comments